Coventry City owners Sisu have won their application for a full judicial review into Coventry City Council’s 14m ‘bailout’ of the Ricoh Arena, reversing a decision made in August.
A High Court judge this morning delivered her decision which could have great significance for the prospects of the Sky Blues returning to the council-owned stadium soon . Mrs Justice Thirlwall said she was satisfied there were grounds to grant Sisu companies leave to apply for a full judicial review. She said she was satisfied the case merited a full hearing with all the relevant evidence.
Coventry City owners Sisu have won their application for a full judicial review into Coventry City Council’s 14m ‘bailout’ of the Ricoh Arena, reversing a decision made in August.
A High Court judge this morning delivered her decision which could have great significance for the prospects of the Sky Blues returning to the council-owned stadium soon . Mrs Justice Thirlwall said she was satisfied there were grounds to grant Sisu companies leave to apply for a full judicial review. She said she was satisfied the case merited a full hearing with all the relevant evidence.
Sisu companies are claiming the council’s £14.4m loan in January to the part-council owned Ricoh firm Arena Coventry Limited was unlawful under European ‘state aid’ legislation. They claim it was an unlawful use of public funds which has created unfair competition. They also claim it interfered with negotiations between Sisu, ACL and the council over Ricoh ownership, and was part of a council plan to force the club into administration with a view to a club takeover by a party favourable to the council.
The council strongly denies the allegations and before today has argued the case should be thrown out.
James Goudie, the QC representing Coventry City Council, requested the judicial review could be scheduled sooner than the standard timescale given that the ‘ongoing uncertainty is not good for anyone on the ground.’
Sisu chief executive Joy Sepalla has stated she wants to buy the freehold of the Ricoh Arena and land to “create value”, support the loss-making club’s revenues, and get a return on funders’ “£60m investment.”
She says alternatively the club will build a new stadium in Warwickshire, after playing home games at Northampton for up to five years.
Council leader Ann Lucas said, “Regardless of all legal action I am happy to talk to Joy Seppala again, and her colleagues, to see if compromise can be reached. I want Coventry City Football Club to play at the Ricoh Arena, but not on terms that would not justify public scrutiny.
“What matters to us most is, in the short term, getting the Sky Blues back at the Ricoh Arena and we appeal to Sisu/Otium to get back round the table with us and talk about bringing the team home as quickly as possible so thousands of fans can once more see the team they love play in their rightful home.