Coventry admit their stadium impasse raises “significant doubt” over their future but they remain confident of securing a home for next season.
The Sky Blues’ rent deal at the Ricoh Arena, owned by Premiership rugby club Wasps, expires in the summer and they recently revealed they are at risk of expulsion from the Football League if no agreement is reached before an EFL Extraordinary General Meeting on April 25.
Coventry’s accounts for the year to May 2018 were released on Monday morning and in them, the club’s directors acknowledge a “material uncertainty” which casts doubt on their ability to “continue as a going concern”.
The accounts, published under the club’s trading name Otium Entertainment Group Limited, state that group shareholders have given confirmation that they will not demand repayment of loans “for the foreseeable future” and will continue to provide funding, but adds that there is “no contractual certainty” over either issue.
The statement continues: “Additionally, the company has not yet secured a venue at which to host the 2019-20 season football matches.
“Management remain confident that a solution to this situation will be found and are exploring a number of options in relation to venues at which to host the football matches for the 2019-20 season.
“Nevertheless, at the date of approval of these financial statements, there remains uncertainty regarding the outcome of these negotiations.
“The directors have no reason to believe that group shareholders will not provide the required support, nor that a suitable venue at which to host the 2019-20 season football matches will not be found.
“However these conditions indicate the existence of a material uncertainty which may cast significant doubt on the company’s ability to continue as a going concern.”
City chairman Tim Fisher told the club’s website: “Our focus remains on agreeing a deal for next season at the Ricoh Arena, the stadium planned and built for the club.
“While the current impasse remains, with Wasps choosing not to enter negotiations, the management has a responsibility to the club and its future, and to its fans, to explore other options that could ensure the club’s survival.”
The accounts showed an operating loss of just over £1.6million, up from £1.1m the previous season, which the club attributed largely to playing in League Two in 2017-18.
They returned to League One for this season and are currently just outside the play-offs.
