Imps’ annual accounts confirm £1m Cowleys compensation and £2.24m net loss

Lincoln City were given compensation of £1 million after the Cowley brothers left the club last year, a figure officially confirmed in their annual report for the financial year ending June 2019.

The report also revealed a net loss for the club of £2.24 million, with the addition of promotion costs and expenditure on players.

As previously reported, Danny and Nicky Cowley wrote an open letter to fans in September 2019 after agreeing to join Huddersfield, who triggered a release clause in their contracts to enable them to discuss and ultimately accept jobs with Championship side. Michael Appleton was appointed as the club’s new first team manager later the same month.

Prior to departing the brothers had overseen a successful three years, including two league titles and promotion into League One, as well as Wembley success in the Checkatrade Trophy.

In the club’s latest Annual Report it said: “Following the year end the Management Team left the employment of the Company to join Huddersfield Town Football Club.

“The company received compensation of £1 million some of which was used to pay rolled up bonus and other contractual payments.”

Lincoln City’s latest Annual Report for the financial year ending June 2019. Photo: Lincoln City Football Club

The club also revealed that the accounts for the 12-month period to June 30, 2019, reported a net loss of £2.24 million. The loss incorporates a continued investment into the club’s assets, systems and people.

Costs linked directly to the club’s promotion to League One amounted to £0.6 million. A proportion of these costs, along with additional expenditure on players in the January transfer window, were said to be the main contributors to the higher than expected loss.

The Parent Company and underlying investors inject equity when necessary into the club. A further £1.4 million in new shares was taken up in the six months following the year-end.

The accounts also show that the company’s turnover increased marginally from £5.28 million in 2017/18 to £5.39 million for the year under review.

The club was also boosted by the news that in-stadium attendances have increased for the third consecutive season – rising from 8,782 in the 2017/18 season to average attendances of 9,006 in the 2018/19 campaign.

The club was also awarded the EFL Family Excellence Award, as well as being voted the third best in an EFL supporters’ survey on match satisfaction.

Last year also saw the club sell the naming rights of its stadium to LNER.

Click here to view the club’s annual financial statement.