Coventry City owners Sisu have wiped £61 million of loans owed by City, the club’s latest accounts reveal.
The latest accounts filed by Sky Blues Sport and Leisure show that Sisu have agreed for this debt to be converted into shares. That means the loans no longer exist and Sisu will be unlikely to get a return on them, unless the club return to the Premier League. The loans were converted into shares as part of the agreement for the club to exit administration.
However, despite the wiping out of this debt, the Sky Blues have posted losses of nearly £8.5 million in the financial year up to May 2014. The period of these accounts are from during the time the club played at Sixfields. This loss is up from the £7.1 million losses City made the previous year. In addition, the club still owes £9.3 million to Sisu.
The accounts also show Coventry raked up £5.6m of administration expenses and almost £2.1m of loan interest. Turnover was also severely down to £3.75 million while at Sixfields but City did make a profit of £938,000 on player sales that year, this does not include the sale of Callum Wilson. Coventry City chairman Tim Fisher said this in a statement on the club’s website:
“The club’s accounts have been filed on time and I have absolutely no doubt that when our supporters see the headline figures they could be quite concerned – I wouldn’t blame them. From the point of view of the current year’s accounts, we do forecast a much healthier set of numbers. We have not drawn down any funding from the owner/creditor for this season and are shifting the club into a position where it can be self-sustaining.”
City appointed Tony Mowbray as manager this week and face Port Vale on Saturday.