Crunch talks over Coventry City’s future have reached breaking point with Ricoh Arena bosses calling the current situation unacceptable. Stadium bosses Arena Coventry Ltd (ACL) have hit out as the club’s unpaid Ricoh rent bill is about to reach £1million.
Crunch talks over Coventry City’s future have reached breaking point with Ricoh Arena bosses calling the current situation unacceptable. Stadium bosses Arena Coventry Ltd (ACL) have hit out as the club’s unpaid Ricoh rent bill is about to reach £1million.
But Sky Blues chiefs have hit back amid growing tension between the club and the stadium. Coventry City FC chief executive Tim Fisher, in a strongly-worded statement issued to the Coventry Evening Telegraph, accused ACL of playing hard-ball because of its own high debt levels, and drops in stadium sponsorship and naming rights revenue.
It has also emerged months of negotiations have broken down over Sky Blues owner Sisu’s bid to obtain a 50 per cent share in the stadium. Coventry City Football Club, with multi-million pound annual losses, insists buying into the Ricoh Arena would be a vital lifeline for the future.
There have been rumours that ACL has itself encountered financial challenges and that it has brought in accountancy firm Deloitte to advise on restructuring its debt. ACL might have difficulty in paying back a multi-million pound loan.
The arena has been unavoidably affected by the recession in what is a very competitive market for exhibitions and live performances. One report suggests that they offered Lady Gaga the venue for free, but she went elsewhere.
It is difficult to see what the way out of this impasse is. Cash strapped Coventry City Council has recently announced plans to lay off more workers. It has understandably been cautious about becoming too involved, but it has a clear interest in the continued viability of the Ricoh, which was meant to be a magnet for economic growth in North Coventry, and in the survival and recovery of the football club.
In an ideal world a credible foreign investor would be attracted by the club’s potential, but no one has appeared in the last few years and these events may make them more wary of getting involved. Some Coventry fans believe the club could benefit if the arena went into administration, but it could end up in the hands of an events management company with little interest in the football club.