Coventry City news from CoventryLive as football finance expert Kieran Maguire explains a new £15m share issue at the football club
Coventry City appear to have received a fresh £15 million cash injection, which a top football finance expert believes is a “positive sign” for the club this summer.
According to documents filed with Companies House, Coventry City’s parent company (COVCITYCO LTD) issued £15 million in fresh shares on May 22 last month.
Explaining what that implies for the Sky Blues, the country’s top football finance expert Kieran Maguire, of Liverpool University, told CoventryLive: “It appears that a new investment of £15 million has been made into the club. It might be from Doug King himself, or it could indicate that he has found a new partial investor. We do not know.
“But it could be fresh money to be used to pay the bills over the summer, the transfer kitty and so on.”
He added: “Alternatively, it’s possible that he’s lent the club some money and has opted to write off the loans by converting them into shares – money that he’s already lent to the club. The Companies House paperwork states that the shares were issued for cash, so I believe it’s the first of those two alternatives.”
When asked if the share issue sounded favorable for the football club, he replied, “Yes. I mean, the club is losing money like all clubs, so they rely on the owner to bring money in, but it’s a good sign, and the fact that it’s shares rather than a loan means it doesn’t have to be repaid, which is another plus.”
CoventryLive has contacted Doug King via the football club for comment and clarification on what the share problem implies for the club.
King, meanwhile, reminded City fans just over a year ago, in May 2024, that the club, like most Championship outfits, continues to operate at a loss, stating that the majority of clubs in the level lose £10-£15 million every year. The Sky Blues owner, however, stated at the time that he is aiming for a zero-loss situation, which he recognized is a’massive task’.
When asked where Coventry City is in terms of PSR (Profit and Sustainability Rules), which are financial restrictions designed to ensure teams operate sustainably and prevent excessive losses, Maguire says the club is “absolutely fine”.
Essentially, PSR restricts a club’s losses over a three-year period, which for Championship clubs is £39 million.
“Coventry are absolutely fine,” he continued. “Why should Doug King subsidise the club to the tune of £39m?”
Using a credit card comparison, he went on to say, “If someone has a credit card, it’s a limit, not a target, and you don’t get a prize for exceeding your credit card limit, just as football teams don’t get a prize for exceeding their £39 million maximum. It’s always better for a club to have a zero balance and be sustainable, but you have no chance in modern football.”
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