Big liabilities at Sky Blues

Coventry City’s affairs are complicated with three companies involved. It now appears that accounts for Coventry City Football (Holdings) Limited for 2011/12 will never be produced as the company is to be struck off the Companies House register.

Accounts have appeared for Sky Blue Sports & Leisure Limited for the year up to May 2012 when the club was relegated to League One. These show net liabilities of £37.7m. with in year losses of £4m, compared with £16m the previous year. The losses were offset by £2.8m profit from player transfers.

Coventry City’s affairs are complicated with three companies involved. It now appears that accounts for Coventry City Football (Holdings) Limited for 2011/12 will never be produced as the company is to be struck off the Companies House register.

Accounts have appeared for Sky Blue Sports & Leisure Limited for the year up to May 2012 when the club was relegated to League One. These show net liabilities of £37.7m. with in year losses of £4m, compared with £16m the previous year. The losses were offset by £2.8m profit from player transfers.

Match receipts while playing at the Ricoh Arena were £3.5m with £7.2m from commercial activities, compared with a players’ wage bill of £8.7m. Attendances at Northampton have been poor and there is also the cost of hiring the ground. A directors’ report attached to the account accepts ‘uncertainty’ over losses incurred by ground sharing at Sixfields.

Loans of £9.1m were received from Sisu-related Cayman Islands based Avro Master Fund, secured by a debenture against the club’s assets (which probably do not run to that amount). Auditors BDO state that there is ‘fundamental uncertainty which may cast doubt over the group and company’s abilities to continue as a going concern.’