Coventry City FC face administration after the Ricoh Arena’s operating company, Arena Coventry Limited (ACL) went to the High Court in London claiming that they are owed £1.3m in rent by the club. Coventry City’s owners, hedge fund Sisu, dispute the terms of the lease.
Coventry City FC face administration after the Ricoh Arena’s operating company, Arena Coventry Limited (ACL) went to the High Court in London claiming that they are owed £1.3m in rent by the club. Coventry City’s owners, hedge fund Sisu, dispute the terms of the lease.
The application means that the football club cannot be put into liquidation while it is considered which would be disastrous for its future. The Sky Blues should be able to survive a ten point deuction without being relegated to League 2. If the club went into administration, it would then be available for purchase from the administrators at a realistic price.
ACL believe that there are prospective bidders interested. At Tuesday night’s game against Colchester United local businessmen and former Sky Blues director Joe Elliott was spotted with American businessmen.
ACL chairman Nicholas Carter said, ‘While it is imperative that ACL takes action to recover these arrears and to stop the arrears growing, it is important to find a solution that can provide for the survival of the Sky Blues.’
Coventry City has suggested that they might leave the Ricoh, but no suitable stadium is available within a reasonable distance in the short term. Building a new stadium would take three years.
Sisu claim to have put £60m into the club, but such has been their mismanagement that they may be left with nothing. How they hoped to make money out of the venture still remains unclear, although if the Sky Blues had returned to the Premiership they would be a very attractive prospect with the enhanced television revenues from next season.