City hit with transfer ban until January

COVENTRY City have confirmed that they have reached a payment agreement with HMRC after being hit with a transfer embargo by the EFL.

The Sky Blues have outlined that the pitch issues at the CBS Arena have had a “significant impact” on the club’s finances. Mark Robins’ side were forced to postpone four out of five home games in the opening weeks of the campaign, with their cup tie against Bristol City being moved to Burton Albion’s Pirelli Stadium.

City finally returned to their own stadium at the end of August and have since played six times at the CBS Arena. However, the loss of revenue at the start of the season caused the club to enter an agreement with HMRC over unpaid tax, which led to the EFL handing out a transfer ban until January 2023.

In a statement, City detailed that the club had entered into a ‘Time to Pay’ agreement with HMRC. It was outlined that the Sky Blues had agreed an extension in September, with the club already providing three of six instalments, with the final payment due in December.

Once the final payment is made, the EFL will lift the current transfer embargo. As a result, the club have vowed that their business in the January window will be “unaffected”.

The club’s chief executive Dave Boddy provided further information about City’s agreement with HMRC: “As we have indicated in recent weeks, the postponement of four out of five home league games at the start of this season has had a significant impact on the club and our current cashflow.

“The Wasps/acl position has presented some serious challenges to the club and the sporting performance, and distress to our supporters and is continuing to do so.

“This has been combined with the club providing initial finance for the pitch improvements, though overall we will not pay any additional costs on top of our rent agreement at the Arena.

“While we are unable to sign players until December, I would like to reassure fans that the timing of this agreement means that we can address this issue now and that any transfer activity in the January window will be unaffected.”