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Coventry - Debt

There are a number of ways at looking at debts. These are shown below. The one most often quoted is the last one on this page.

The analysis in this section is on the overall club issue, not just the footballing side of things.

One way is to look at all the assets of the club. The assets are made up of the ground and the like, these are known as fixed assets. There are also the players, these are known as intangible assets. The worth of a player can go up or down and is less dependable than a fixed asset of land, or a building. The analysis of assets is shown here.

On the opposite side of things is how much the club owes, its liabilities.


These can again be split in to two, current liabilities and long-term liabilities. Current liabilities are things that need to be paid within the next year. Often these are not paid off within a year, and are just re-financed later on. Long-term liabilities are things like mortgages, or other long term loans. Long-term debt is less of an issue than short-term. The analysis is again here.

The next thing to look at is whether the club has the ability to cover the money it owes. So if the business had to sell all the players, then the ground, everything, would this cover all the money they owe in the next year. This is graph of how this has progressed is shown below. The figures point to there not now being any way the club could continue the way it has been over the last eight years.

 

The final way to look at debts is to look at the long term picture. This takes into account long term issues like paying off the mortgage. The graph for this are shown below. The first one shows how much debt the club owes. The debt is made up of the overdraft and all loans outstanding, be they short-term or long-term.


The last graph shows all the assets of the club, against all the liabilities of the club. The figures again emphasise how desperate things were getting.

Link to Football Finances Home Page