Company registration number 07612487 (England and Wales)
COVENTRY CITY FOOTBALL CLUB LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
COVENTRY CITY FOOTBALL CLUB LIMITED
COMPANY INFORMATION
Director
Douglas Richard John King
Secretary
BCS Cosec Limited
Company number
07612487
Registered office
Sky Blue Lodge
Leamington Road
Ryton on Dunsmore
Coventry
CV8 3FL
Auditor
Edwards
34 High Street
Aldridge
Walsall
West Midlands
WS9 8LZ
COVENTRY CITY FOOTBALL CLUB LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Director's responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 27
COVENTRY CITY FOOTBALL CLUB LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -
The director presents the strategic report together with the audited financial statements for the year ended 31 May 2024.
The result for the year for the company is set out in the statement of comprehensive income. The director does not recommend payment of a dividend.
The director considers the key performance indicators of the company to be league status, finishing position of the club, and the year’s operating result.
Season Review
From a business point of view, the following financial performance results are highlighted –
Turnover increased by £8.937M to £29.306M (YE23 £20.369M).
There was an increase of £2.867M in match receipts as result of increased seasonal sales, coupled with improved attendances and increased cup income through reaching the FA Cup semi-final at Wembley. Income from Broadcasting increased by £1.085M through a combination of League distribution income and enhanced TV fees received through coverage of FA Cup fixtures.
Other commercial income showed an increase of £4.985M which arose mainly through increased Retail revenue (having taken the retail operation fully in house), together with prize money attributable to the success achieved in the lengthy FA Cup run.
Accordingly, due to related costs incurred from the additional FA Cup fixtures, plus costs from taking the retail operation in-house, the Cost of Sales increased by £3.267M to £7.920M (YE23 £4.653M).
Operating administrative expenses, excluding amortisation and depreciation, have increased by £6.655M to £27.212M (YE23 £20.557M) – the majority of this increased expenditure was on player wages through the continued investment in the playing squad.
Interest charges substantially decreased by £2.349M to £28K (YE23 £2.377M) – this being as a direct consequence of loan funding through the new ownership of the company not attracting interest charges.
Profit on sale of players showed a significant increase of £21.310M (YE24 £23.678M; YE23 £2.368M) – this arose mainly from the sale of Viktor Gyokeres and Gus Hamer.
Exceptional income of £2.986M arose for YE23 and this related mainly to the write back of a withholding tax provision no longer being repayable in relation to loans owed to the previous overseas parent company.
Tax credit of £192K in YE23 relates to research and development tax credit claims for YE 31 May 2022 expenditure – claims in respect of the years ended 31 May 2023 & 2024 are in process at present.
As a result of the significant increase in profit on the sale of players, a profit before tax of £8.688M was achieved for YE 24 (YE23 a loss of £4.907M).
Season 2023/24 reflected the first full year of trading following the change in the ownership of the club during January 2023.
The change in ownership continues to be an exciting venture for the club, and with the debt restructure that took place, the club will, and have, benefitted in many financial aspects, especially with the club no longer being tied to either interest or management charges.
The licence agreement that was negotiated to secure the clubs future of playing its home fixtures at the CBS Arena through to the end of season 2027/28, has given the club a stable base to allow confidence in implementation of the Boards future strategic plans.
COVENTRY CITY FOOTBALL CLUB LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 2 -
Season Review (continued)
Continued infrastructure improvements have been implemented, and the Club can now be proud that they have Training Ground facilities that will encourage future players to join the club, and enhance the improvement of the existing squad. Additionally, the investment in the new pitch installed at the stadium has ensured that the inherited EFL sanction of a 5 points deduction suspended through to the end of 2023/24 season (a situation that arose due to the cancellation of home fixtures at the start of the 2022/23 season as a direct consequence from the playing of Commonwealth Games Rugby Seven fixtures) was successfully avoided.
Although the club were competitive deep into the 2023/24 season, they were unable to repeat the 2022/23 feat of reaching the play-off final, and eventually finished in 9th place. However, through a successful run in the FA Cup, the club were once again able to provide our loyal and passionate supporters with another memorable day at Wembley. The semi-final against Manchester United was truly a memorable day, but unfortunately a day that ultimately ended in disappointment, with the team suffering the heartbreak of another defeat on penalties. Despite the defeat, the players, staff and supporters should all be truly proud of their performance over the 2023/24 season.
Following the disappointment at Wembley, the board have wasted no time in actioning plans that it feels will help achieve the clubs’ ultimate goal of achieving promotion to the Premier League.
The Summer 2022/23 transfer window saw both Viktor Gyokeres and Gus Hamer leave the club, but the transfer fees obtained from their disposals were immediately re-invested into the acquisition of several quality player acquisitions, with the aim of achieving an overall stronger playing squad capable of challenging for promotion to the Premier League on a regular basis.
In order to continue the improvement of the playing squad, further player acquisitions have been made during the Summer 2024/25 transfer window. Despite the player investment made, the finish to the latter Championship games in season 2023/24 and to the disappointing start made in season 2024/25, resulted in the difficult decision to part company with our long serving manager Mark Robins – there is no doubt that Coventry City would not be where it is today without the inspired actions of Mark and his team, and we wish him every success for the future.
The club have moved quickly to bring in Frank Lampard as its new Head Coach, together with Joe Edwards and Chris Jones as his new backroom team. Their combined experiences will ensure they bring to our talented squad, clear understanding of exactly what is needed to succeed at the very top level that we as a Club are striving to reach.
Together with our remarkable fan base we look forward to continuing this exciting journey together.
Principal risks and uncertainties
The Board acknowledges that there are a number of risks and uncertainties which could have a material impact on the company's performance. The company's future income is affected by the club’s performance because significant revenues are dependent upon team performance in the Football League and domestic cup competitions.
In order for the team to remain competitive, significant investment is required on an ongoing basis in both financial and non-financial terms. This investment needs to be balanced with the most important Board responsibility, which is to maintain a financially secure professional football club.
The Board maintains the financial discipline throughout the company to ensure that it is able to continue to operate within its existing facilities.
The company prepares annual budgets and forecasts, and maintains a close working relationship with its financiers and shareholders and is dependent on the continuing support from shareholders. Further detail of the going concern position of the company is set out in note 1.
Douglas Richard John King
Director
19 December 2024
COVENTRY CITY FOOTBALL CLUB LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 3 -
The director presents his annual report and financial statements for the year ended 31 May 2024.
Principal activities
The principal activity of the company continued to be that of running a professional football club.
Results and dividends
The results for the year are set out on page 9.
No ordinary dividends were paid. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Douglas Richard John King
Financial instruments
The company finances its operations through group loans and day-to-day through the use of operational bank accounts. The company makes use of financial instruments principally through its operational bank accounts. The director's objectives are to retain sufficient liquid funds to enable the company to meet its day to day requirements as they fall due and to maximise returns on surplus funds where possible. The director believes that this gives the flexibility to release cash resources at short notice and allows the company to take advantage of changing economic conditions as they arise.
Research and development
The club continues to invest in research and development to enhance our knowledge of injury rehabilitation and performance tracking, and in addition are being supported by our parent undertaking to continue this investment.
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
Post reporting date events
Transfers of player registrations subsequent to 31 May 2024, taking into account applicable costs and player acquisitions, resulted in a net £10,962,266 (2023 - £8,918,219) payable by the club.
In addition to the above, subsequent to 31 May 2024, the club received £50,000 (2023: £464,000) and paid £362,015 (2023 - £25,000) in relation to sell-on and contingent contractual clauses for ex-players.
On 7 November 2024, the Club announced the termination of the contract of First Team Manager, Mark Robins. On 28 November 2024, the Club announced Frank Lampard as the new First Team Manager.
COVENTRY CITY FOOTBALL CLUB LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 4 -
Auditor
In accordance with the company's articles, a resolution proposing that Edwards be reappointed as auditor of the company will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Going concern
The director has formed a judgement that the club has adequate resources available to continue operating and to discharge all financial obligations as they fall due for a period of at least 12 months from the date of approval of the financial statements.
The club made a profit for the financial year of £8,688,193 (2023 - £4,715,053 loss), had net current assets of £6,042,198 (2023 - £3,238,437 net current liabilities) and net assets of £3,110,592 (2023 - £5,577,601 net liabilities) at 31 May 2024.
CovCityCo Ltd, the immediate parent company, have confirmed they will continue to provide such financial support as the club requires to enable it to meet its liabilities as they fall due, for a period of at least 12 months from the date that these financial statements are approved.
The director has prepared detailed cashflow forecasts to assess potential funding requirements for the period to 31 December 2025 which model the impact of the credit facility provided to the club by CovCityCo Ltd, and further funds being made available should they be required. The director is confident in his assumption that cash flow forecasts should be based upon the club’s continued participation in the EFL Championship. The director is also confident that there are sufficient resources available to mitigate the additional funding requirements in the remote event that the club is relegated to EFL League One including the procurement of further financial support from CovCityCo Ltd and the option to generate funds from player sales.
Additionally, the director would not commit the club to any further spend above the current forecasted levels, particularly in relation to the acquisition of players, without first confirming availability of sufficient funding.
Based upon current expectations and with the continued support of the club's parent undertaking, the club are forecast to have sufficient resources to meet their liabilities for the period to 31 December 2025.
As such, the director does not consider there to be a material uncertainty in relation to the ability of the club to continue as a going concern and believes that preparing the financial statements on the going concern basis is appropriate.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Douglas Richard John King
Director
19 December 2024
COVENTRY CITY FOOTBALL CLUB LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2024
- 5 -
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
COVENTRY CITY FOOTBALL CLUB LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF COVENTRY CITY FOOTBALL CLUB LIMITED
- 6 -
Opinion
We have audited the financial statements of Coventry City Football Club Limited (the 'company') for the year ended 31 May 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 May 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
COVENTRY CITY FOOTBALL CLUB LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF COVENTRY CITY FOOTBALL CLUB LIMITED (CONTINUED)
- 7 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We obtained an understanding of the legal and regulatory frameworks within which the Company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, employment law, health and safety regulations and compliance with the EFL handbook, Football League rules and Financial Fair Play.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be in the following areas: timing of recognition of income, the override of controls by management, inappropriate treatment of non-routine transactions and areas of estimation uncertainty, specifically recognition of player transfer costs liabilities and fixed asset valuations. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, review and discussion of non-routine transactions, sample testing on the posting of journals and income transactions and review of accounting estimates for biases.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
COVENTRY CITY FOOTBALL CLUB LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF COVENTRY CITY FOOTBALL CLUB LIMITED (CONTINUED)
- 8 -
This report is made solely to the company's member in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.
Robert Kempson ACA
Senior Statutory Auditor
For and on behalf of Edwards
20 December 2024
Chartered Accountants
Statutory Auditor
34 High Street
Aldridge
Walsall
West Midlands
WS9 8LZ
COVENTRY CITY FOOTBALL CLUB LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
29,306,522
20,369,822
Cost of sales
(7,920,655)
(4,653,145)
Gross profit
21,385,867
15,716,677
Administrative expenses
(36,349,806)
(23,602,092)
Operating loss
5
(14,963,939)
(7,885,415)
Interest receivable and similar income
8
1,755
105
Other interest payable and similar expenses
9
(28,098)
(2,377,062)
Profit on sale of player registrations
10
23,678,475
2,368,527
Exceptional income
4
2,986,733
Profit/(loss) before taxation
8,688,193
(4,907,112)
Tax on profit/(loss)
11
192,059
Profit/(loss) for the financial year
8,688,193
(4,715,053)
The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.
COVENTRY CITY FOOTBALL CLUB LIMITED
BALANCE SHEET
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
27,936,760
1,753,352
Tangible assets
13
7,312,085
1,954,198
35,248,845
3,707,550
Current assets
Stocks
14
531,411
88,098
Debtors
15
24,140,255
6,260,236
Cash at bank and in hand
4,066,423
1,653,043
28,738,089
8,001,377
Creditors: amounts falling due within one year
16
(22,695,891)
(11,239,814)
Net current assets/(liabilities)
6,042,198
(3,238,437)
Total assets less current liabilities
41,291,043
469,113
Creditors: amounts falling due after more than one year
17
(38,180,451)
(6,046,714)
Net assets/(liabilities)
3,110,592
(5,577,601)
Capital and reserves
Called up share capital
21
65,217,308
65,217,308
Share premium account
33,728,260
33,728,260
Profit and loss reserves
(95,834,976)
(104,523,169)
Total equity
3,110,592
(5,577,601)
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved and signed by the director and authorised for issue on 19 December 2024
Douglas Richard John King
Director
Company registration number 07612487 (England and Wales)
COVENTRY CITY FOOTBALL CLUB LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 11 -
Share capital
Share premium account
Equity component of convertible loan
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 June 2022
65,215,308
249,087
(100,057,203)
(34,592,808)
Year ended 31 May 2023:
Loss for the year
-
-
-
(4,715,053)
(4,715,053)
Issue of share capital
2,000
33,728,260
-
-
33,730,260
Other movements
-
(249,087)
249,087
-
Balance at 31 May 2023
65,217,308
33,728,260
(104,523,169)
(5,577,601)
Year ended 31 May 2024:
Profit for the year
-
-
-
8,688,193
8,688,193
Balance at 31 May 2024
65,217,308
33,728,260
(95,834,976)
3,110,592
COVENTRY CITY FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 12 -
1
Accounting policies
Company information
Coventry City Football Club Limited is a private company limited by shares incorporated in England and Wales. The registered office is Sky Blue Lodge, Leamington Road, Ryton on Dunsmore, Coventry, CV8 3FL.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of CovCityCo Limited. These consolidated financial statements are available from Companies House.
COVENTRY CITY FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 13 -
1.2
Going concern
The director has formed a judgement that the club has adequate resources available to continue operating and to discharge all financial obligations as they fall due for a period of at least 12 months from the date of approval of the financial statements.true
The club made a profit for the financial year of £8,688,193 (2023 - £4,715,053 loss), had net current assets of £6,042,198 (2023 - £3,238,437 net current liabilities) and net assets of £3,110,592 (2023 - £5,577,601 net liabilities) at 31 May 2024.
CovCityCo Ltd, the immediate parent company, have confirmed they will continue to provide such financial support as the club requires to enable it to meet its liabilities as they fall due, for a period of at least 12 months from the date that these financial statements are approved.
The director has prepared detailed cashflow forecasts to assess potential funding requirements for the period to 31 December 2025 which model the impact of the credit facility provided to the club by CovCityCo Ltd, and further funds being made available should they be required. The director is confident in his assumption that cash flow forecasts should be based upon the club’s continued participation in the EFL Championship. The director is also confident that there are sufficient resources available to mitigate the additional funding requirements in the remote event that the club is relegated to EFL League One including the procurement of further financial support from CovCityCo Ltd and the option to generate funds from player sales.
Additionally, the director would not commit the club to any further spend above the current forecasted levels, particularly in relation to the acquisition of players, without first confirming availability of sufficient funding.
Based upon current expectations and with the continued support of the club's parent undertaking, the club are forecast to have sufficient resources to meet their liabilities for the period to 31 December 2025.
As such, the director does not consider there to be a material uncertainty in relation to the ability of the club to continue as a going concern and believes that preparing the financial statements on the going concern basis is appropriate.
1.3
Turnover
Turnover, which all arises in the United Kingdom, represents match receipts, executive box rentals and income from commercial activities receivable by the company, excluding VAT and trade discounts. Turnover is recognised for match related income in accordance with the matches played. Sponsorship and similar commercial income is recognised over the duration of the respective contracts in line with the contractual terms. Income arising from the fixed element of TV receipts is recognised over the course of the playing season. The non-fixed element of TV receipts relating to match coverage are recognised as the matches are played.
Income from match receipts, sponsorship and commercial contracts, which has been received prior to the year end in respect of future football seasons, is treated as deferred income.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred.
COVENTRY CITY FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 14 -
1.5
Intangible fixed assets
The company capitalises, as an intangible asset, the element of a player's transfer fee which relates to his registration together with associated costs and amortises that element over the period of his contract including any subsequently agreed extensions. Players' registrations are written down for impairment when the carrying amount exceeds the amount recoverable through use or sale.
Trade marks purchased separately from a business are included at cost and amortised over their useful economic lives of 10 years.
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their estimated useful lives, using the straight-line method and on the following basis:
Freehold buildings
2% per annum
Leasehold improvements
10% to 33.3% per annum
Plant, fixtures and equipment
7.5% to 33.3% per annum
Freehold land is not depreciated.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Where a reasonable and consistent basis of allocation can be identified, assets are allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.
COVENTRY CITY FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 15 -
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
Basic financial liabilities
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
COVENTRY CITY FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 16 -
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
The pension costs charged against profits represent the amount of the benefit payable to the scheme in respect of the accounting period.
Certain employees are members of the Football League Pension and Life Assurance (FLPLA) Scheme and the Football League Players' Benefit Scheme ("the schemes"). The company continues to make contributions in respect of its share of the deficit of these defined benefit pension schemes. Accrual of the benefits on a final salary basis was suspended with effect from 31 August 1999, when actuarial review showed a substantial deficit. As one of the number of participating employers the company is advised only of its share of the scheme's deficit and recognises a liability in respect of this. Contributions payable to the scheme's reduce this liability.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.16
The director has re-analysed certain corresponding amounts within the profit and loss account to make their disclosure more meaningful.
1.17
Finance costs are charged to the statement of comprehensive income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
COVENTRY CITY FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 17 -
2
Judgements and key sources of estimation uncertainty
The preparation of financial statements in conformity with FRS 102 requires the director to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The nature of the company's business is such that there can be unpredictable variation and uncertainty regarding its business. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Player transfer costs
The director has to make certain judgements as to whether a liability should be recognised under the terms of the contracts with other football clubs in respect of player transfers. These judgements include the director's opinion, at the balance sheet date, on the likely league status in the next season. It also requires certain judgements as to whether a player will continue to make the contractually agreed number of first team appearances. Based on these judgements, the director decides on an individual player by player basis as to whether the liability is disclosed as a contingent liability or whether it becomes recognised as a liability in trade creditors in the balance sheet.
Intangible assets, tangible assets and impairment
The director is required to test whether intangible and tangible assets have suffered any impairment. The recoverable amount of cash generating units connected to the recorded value of these assets has been determined based on value in use estimates and compared to the book value to determine if an impairment provision is needed.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Match receipts
10,041,407
7,174,681
Broadcasting
10,122,037
9,037,332
Other commerical
9,143,078
4,157,809
29,306,522
20,369,822
COVENTRY CITY FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 18 -
4
Exceptional income
2024
2023
£
£
Income
Exceptional income
-
2,986,733
Exceptional income in the prior year represents the write back of accrued withholding tax of £2,923,486 in relation to loans previously owed to an overseas parent company no longer payable and accrued interest previously owed to bond holders of £63,247 which has been waived.
5
Operating loss
2024
2023
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange losses
279,019
Depreciation of owned tangible fixed assets
776,150
161,682
Depreciation of tangible fixed assets held under finance leases
28,029
11,679
(Profit)/loss on disposal of tangible fixed assets
(17,800)
318,033
Amortisation of intangible fixed assets
8,333,162
2,871,476
Operating lease charges
1,382,561
1,033,754
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
17,750
17,300
For other services
Taxation compliance services
2,000
2,300
All other non-audit services
9,189
2,900
11,189
5,200
COVENTRY CITY FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 19 -
7
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Players and management
153
161
Administrative and commercial
61
35
Total
214
196
During the year, in addition to the above, the company also had available approximately 191 (2023 - 191) temporary staff on match days, the cost of which are included within direct expenses.
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
20,583,748
16,087,093
Social security costs
2,617,969
1,734,587
Pension costs
204,130
92,393
23,405,847
17,914,073
Eligible staff are members of the Football League Limited Pension and Life Assurance Scheme. The latest valuation of the scheme deficit has shown an underfunding of the scheme and accordingly the company's current share of the liability stands at £334,298 (2023 - £319,032). This is included within creditors.
The company operates a defined contribution pension scheme for the benefit of the employees. The assets of the scheme are administered by trustees in a fund independent from those of the company.
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
1,755
105
9
Interest payable and similar expenses
2024
2023
£
£
Other interest payable
2,127,397
Interest on forward finance agreements
-
237,585
Interest on finance lease obligations
4,033
1,344
Late repayment interest
24,065
10,736
28,098
2,377,062
COVENTRY CITY FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 20 -
10
Profit on player sales
2024
2023
£
£
Profit on player sales
23,678,475
2,368,527
11
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
(192,059)
Total current tax
-
(192,059)
Deferred tax
Total deferred tax
Total tax charge/(credit)
-
(192,059)
The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit/(loss) before taxation
8,688,193
(4,907,112)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
2,172,048
(1,226,778)
Tax effect of expenses that are not deductible in determining taxable profit
1,674
Depreciation on assets not qualifying for tax allowances
53,966
15,630
R&D tax credit related to prior years
(192,059)
Deferred tax not recognised
(2,226,014)
1,217,402
Tax effect of enhanced capital allowances
(7,928)
Taxation charge/(credit) for the year
-
(192,059)
Factors that may affect future tax charges
The company has an unrecognised deferred tax asset of £7,535,227 (2023 - £9,847,194). This has not been recognised as its future recoverability is uncertain.
COVENTRY CITY FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 21 -
12
Intangible fixed assets
Goodwill
Trademarks
Player registrations
Total
£
£
£
£
Cost
At 1 June 2023
2,224,038
6,570
8,754,593
10,985,201
Additions
35,442,395
35,442,395
Disposals
(5,801,108)
(5,801,108)
At 31 May 2024
2,224,038
6,570
38,395,880
40,626,488
Amortisation and impairment
At 1 June 2023
2,224,038
4,530
7,003,281
9,231,849
Amortisation charged for the year
275
8,332,887
8,333,162
Disposals
(4,875,283)
(4,875,283)
At 31 May 2024
2,224,038
4,805
10,460,885
12,689,728
Carrying amount
At 31 May 2024
1,765
27,934,995
27,936,760
At 31 May 2023
2,040
1,751,312
1,753,352
Any players whom the company do not consider to be a long term part of the first team squad and who will therefore not contribute to future cash flows earned by the company are assessed for impairment by considering the carrying value with the company’s best estimate of fair value (being post year-end sales proceeds or expected sales proceeds) less costs to sell. The director is satisfied that no further provision is required.
13
Tangible fixed assets
Freehold buildings
Leasehold improvements
Plant, fixtures and fittings
Total
£
£
£
£
Cost
At 1 June 2023
359,999
2,242,581
2,602,580
Additions
2,076,584
796,105
3,289,377
6,162,066
At 31 May 2024
2,436,583
796,105
5,531,958
8,764,646
Depreciation and impairment
At 1 June 2023
56,737
591,645
648,382
Depreciation charged in the year
5,432
87,530
711,217
804,179
At 31 May 2024
62,169
87,530
1,302,862
1,452,561
Carrying amount
At 31 May 2024
2,374,414
708,575
4,229,096
7,312,085
At 31 May 2023
303,262
1,650,936
1,954,198
COVENTRY CITY FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
13
Tangible fixed assets
(Continued)
- 22 -
The carrying value of land and buildings comprises:
2024
2023
£
£
Freehold
118,573
118,573
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases:
2024
2023
£
£
Plant and equipment
44,378
72,407
14
Stocks
2024
2023
£
£
Finished goods and goods for resale
531,411
88,098
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
12,098,923
1,049,233
Corporation tax recoverable
192,059
Other debtors
861,248
2,739,172
Prepayments and accrued income
3,753,294
2,279,772
16,713,465
6,260,236
2024
2023
Amounts falling due after more than one year:
£
£
Trade debtors
7,426,790
Total debtors
24,140,255
6,260,236
Included within trade debtors is £17,815,931 (2023 - £30,000) and included within accrued income is £904,906 (2023 - £5,263) in respect of transfer fees receivable (exclusive of VAT).
COVENTRY CITY FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 23 -
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
19
28,028
28,028
Trade creditors and transfer fees
9,799,360
3,456,435
Taxation and social security
1,276,986
1,058,330
Other creditors
371,495
1,514,613
Accruals and deferred income
11,220,022
5,182,408
22,695,891
11,239,814
Included within creditors due within one year are trade creditors of £6,516,285 (2023 – £580,000) and accruals of £2,406,016 (2023 - £483,528) in respect of actual and probable transfer fees payable (exclusive of VAT).
Included within other creditors due within one year is an amount of £Nil (2023 - £61,200) in respect of a loan advanced by the English Football League ("EFL"). This loan is unsecured and is interest free. In the event of the company defaulting on payment terms, interest will be charged at a rate of 2% above the base rate of the EFL's bankers. In addition, in the event of the Club being promoted or relegated out of the Football League the amount becomes repayable immediately.
Included within other creditors due within one year is an amount of £Nil (2023 - £1,066,668) in respect of a "PAYE" loan advanced by the EFL. This loan is unsecured and is interest free. In the event of the Club being promoted to the Premier League the amount becomes repayable immediately.
COVENTRY CITY FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 24 -
17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
19
18,686
46,714
Other borrowings
18
30,000,000
6,000,000
Trade creditors
7,306,140
Accruals and deferred income
855,625
38,180,451
6,046,714
Included within creditors due after more than one year are trade creditors of £6,088,450 (2023 – £Nil) and accruals of £855,625 (2023 - £Nil) in respect of actual and probable transfer fees payable (exclusive of VAT).
18
Borrowings
2024
2023
£
£
Intercompany loans
30,000,000
6,000,000
30,000,000
6,000,000
Included within intercompany loans is an amount of £30,000,000 (2023: £6,000,000) owed to the parent company CovCityCo Ltd under the terms of a credit facility agreement. This facility is unsecured, is interest free and has a maturity date of 28 February 2027.
19
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
28,028
28,028
In two to five years
18,686
46,714
46,714
74,742
Net obligations under finance leases are secured on the assets to which they relate.
COVENTRY CITY FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 25 -
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
204,130
92,393
Certain employees of the company participate in the Football League Pension and Life Assurance (FLPLA) Scheme and the Football League Player' Benefit Scheme. Both schemes are defined benefit schemes co-sponsored by the FA Premier League and the Football League.
Accrual of the benefits on a final salary basis was suspended with effect from 31 August 1999, when actuarial review showed a substantial deficit. As one of the number of participating employers the company is advised only of its share of the scheme's deficit and recognises a liability in respect of this.
The latest valuation of the scheme deficit has shown an understanding of the scheme and accordingly the company's current share of the liability stands at £334,298. This is included within creditors.
21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
3,000
3,000
3,000
3,000
'A' preference shares of £1 each
15,258,720
15,258,720
15,258,720
15,258,720
'B' preference shares of £1 each
49,955,588
49,955,588
49,955,588
49,955,588
65,217,308
65,217,308
65,217,308
65,217,308
Ordinary shares have the right to vote on the basis of one vote per share held.
'A' Preference shares have no rights as to voting.
'B' Preference shares have no rights as to voting.
22
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£
£
Acquisition of tangible fixed assets
1,076,502
1,818,918
COVENTRY CITY FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 26 -
23
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
1,103,427
740,008
Between two and five years
4,557,908
4,537,663
In over five years
5,259
5,666,594
5,277,671
24
Related party transactions
The company has taken advantage of the exemption conferred within FRS102 section 33.1A not to disclose transactions between wholly owned members of the same group.
Douglas Richard John King, director, is also a director and shareholder of several related parties with which the company have traded. During the year, the company made sales of £46,018 (2023 - £Nil), made purchases of £2,663 (2023 - £Nil) and received sponsorship of £300,000 (2023 - £Nil) to and from these related parties. At the 31 May 2024, included within trade debtors are amounts of £25,096 (2023 - £Nil) due from these related parties. No amounts owed to these related parties were outstanding at 31 May 2024 (2023 - £Nil).
25
Events after the reporting date
Transfers of player registrations subsequent to 31 May 2024, taking into account applicable costs and player acquisitions, resulted in a net £10,962,266 (2023 - £8,918,219) payable by the club.
In addition to the above, subsequent to 31 May 2024, the club received £50,000 (2023: £464,000) and paid £362,015 (2023 - £25,000) in relation to sell-on and contingent contractual clauses for ex-players.
On 7 November 2024, the Club announced the termination of the contract of First Team Manager, Mark Robins. On 28 November 2024, the Club announced Frank Lampard as the new First Team Manager.
26
Contingent liabilities
The company has, under transfer agreements, a liability to pay additional sums dependent on players' attainment of agreed numbers of first team appearances and any subsequent transfer value. No provision has been made in these accounts for such liabilities as the conditions are not met at the balance sheet date and no reliable estimates can be made of any subsequent transfer values.
2024
2023
£
£
Maximum amounts payable:
559,028
150,000
27
Contingent assets
Based on transfer agreements signed prior to the year-end the company could potentially receive additional amounts of at least £782,186 (2023 - £190,000). These sums are dependent on the attainment of certain objectives by the player and the club they are now employed by. Conditions have not been met at the balance sheet date and no asset has been recognised.
COVENTRY CITY FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 27 -
28
Ultimate controlling party
At the balance sheet date, the parent undertaking of the company is CovCityCo Ltd, which is registered in England and Wales. CovCityCo Ltd is wholly owned by Mr Douglas Richard John King who is considered to be the ultimate controlling party.
The largest and smallest group in which the results of the company are consolidated is that headed by CovCityCo Ltd. The consolidated accounts of this company are available to the public and may be obtained from Companies House.
2024-05-312023-06-01falsefalsefalseCCH SoftwareCCH Accounts Production 2024.310Douglas Richard John KingBCS Cosec Limited076124872023-06-012024-05-3107612487bus:Director12023-06-012024-05-3107612487bus:CompanySecretary12023-06-012024-05-3107612487bus:RegisteredOffice2023-06-012024-05-31076124872024-05-31076124872022-06-012023-05-3107612487core:RetainedEarningsAccumulatedLosses2022-06-012023-05-3107612487core:RetainedEarningsAccumulatedLosses2023-06-012024-05-3107612487core:OtherResidualIntangibleAssets2024-05-3107612487core:OtherResidualIntangibleAssets2023-05-3107612487core:Goodwill2024-05-3107612487core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2024-05-3107612487core:Non-standardIntangibleAssetClass2ComponentIntangibleAssetsOtherThanGoodwill2024-05-3107612487core:Goodwill2023-05-3107612487core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-05-3107612487core:Non-standardIntangibleAssetClass2ComponentIntangibleAssetsOtherThanGoodwill2023-05-31076124872023-05-3107612487core:LandBuildingscore:OwnedOrFreeholdAssets2024-05-3107612487core:LeaseholdImprovements2024-05-3107612487core:OtherPropertyPlantEquipment2024-05-3107612487core:LandBuildingscore:OwnedOrFreeholdAssets2023-05-3107612487core:LeaseholdImprovements2023-05-3107612487core:OtherPropertyPlantEquipment2023-05-3107612487core:CurrentFinancialInstrumentscore:WithinOneYear2024-05-3107612487core:CurrentFinancialInstrumentscore:WithinOneYear2023-05-3107612487core:Non-currentFinancialInstrumentscore:AfterOneYear2024-05-3107612487core:Non-currentFinancialInstrumentscore:AfterOneYear2023-05-3107612487core:CurrentFinancialInstruments2024-05-3107612487core:CurrentFinancialInstruments2023-05-3107612487core:Non-currentFinancialInstruments2024-05-3107612487core:Non-currentFinancialInstruments2023-05-3107612487core:ShareCapital2024-05-3107612487core:ShareCapital2023-05-3107612487core:SharePremium2024-05-3107612487core:SharePremium2023-05-3107612487core:RetainedEarningsAccumulatedLosses2024-05-3107612487core:RetainedEarningsAccumulatedLosses2023-05-3107612487core:ShareCapital2022-05-3107612487core:SharePremium2022-05-3107612487core:OtherMiscellaneousReserve2022-05-3107612487core:RetainedEarningsAccumulatedLosses2022-05-31076124872022-05-3107612487core:OtherMiscellaneousReserve2023-05-3107612487core:OtherMiscellaneousReserve2024-05-3107612487core:ShareCapitalOrdinaryShares2024-05-3107612487core:ShareCapitalOrdinaryShares2023-05-3107612487core:ShareCapital2022-06-012023-05-3107612487core:SharePremium2022-06-012023-05-3107612487core:SharePremium12022-06-012023-05-3107612487core:LandBuildingscore:OwnedOrFreeholdAssets2023-06-012024-05-3107612487core:LeaseholdImprovements2023-06-012024-05-310761248712023-06-012024-05-310761248712022-06-012023-05-3107612487core:UKTax2023-06-012024-05-3107612487core:UKTax2022-06-012023-05-310761248722023-06-012024-05-310761248722022-06-012023-05-310761248732023-06-012024-05-310761248732022-06-012023-05-310761248742023-06-012024-05-310761248742022-06-012023-05-3107612487core:Goodwill2023-05-3107612487core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-05-3107612487core:Non-standardIntangibleAssetClass2ComponentIntangibleAssetsOtherThanGoodwill2023-05-31076124872023-05-3107612487core:Goodwillcore:ExternallyAcquiredIntangibleAssets2023-06-012024-05-3107612487core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillcore:ExternallyAcquiredIntangibleAssets2023-06-012024-05-3107612487core:Non-standardIntangibleAssetClass2ComponentIntangibleAssetsOtherThanGoodwillcore:ExternallyAcquiredIntangibleAssets2023-06-012024-05-3107612487core:ExternallyAcquiredIntangibleAssets2023-06-012024-05-3107612487core:Goodwill2023-06-012024-05-3107612487core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-06-012024-05-3107612487core:Non-standardIntangibleAssetClass2ComponentIntangibleAssetsOtherThanGoodwill2023-06-012024-05-3107612487core:LandBuildingscore:OwnedOrFreeholdAssets2023-05-3107612487core:LeaseholdImprovements2023-05-3107612487core:OtherPropertyPlantEquipment2023-05-3107612487core:OtherPropertyPlantEquipment2023-06-012024-05-3107612487core:PlantMachinery2024-05-3107612487core:PlantMachinery2023-05-3107612487core:WithinOneYear2024-05-3107612487core:WithinOneYear2023-05-3107612487core:BetweenTwoFiveYears2024-05-3107612487core:BetweenTwoFiveYears2023-05-3107612487core:MoreThanFiveYears2024-05-3107612487core:MoreThanFiveYears2023-05-3107612487bus:PrivateLimitedCompanyLtd2023-06-012024-05-3107612487bus:FRS1022023-06-012024-05-3107612487bus:Audited2023-06-012024-05-3107612487bus:FullAccounts2023-06-012024-05-31xbrli:purexbrli:sharesiso4217:GBP