Administration confirmed for Coventry City
A COMPLICATED legal hearing involving the immediate future of Coventry City FC has ended with the court ruling the club is effectively in administration.
Should the Football League accept the ruling then the League One club is likely to be docked 10 points, effectively ending its push for promotion back into the Championship.
An administration order was brought against the club’s owner, Sisu Holdings, by Arena Coventry Ltd, the owner of the club’s home, the Ricoh Arena. It is thought the club owed its landlord around £1.3m in rent arrears.
Sisu had acted last week by placing a non-playing subsidiary of the business into administration. The subsidiary owns the so-called Golden Share, which guarantees the club membership of the Football League.
The move prompted ACL to request an adjournment, a move accepted by the court.
At the resumption of the hearing yesterday, ACL asked for the administration order to be withdrawn after accepting the club was effectively in administration.
ACL is now looking for urgent talks with the joint administrator, Paul Appleton, to try and resolve the situation and determine whether the club can play its remaining home games this season at the Ricoh.
Tim Fisher, CEO Coventry Football Club said after the hearing: “I acknowledge that ACL has now accepted that it must withdraw its administration application from the High Court notwithstanding the fact that this was an unwelcome and unnecessary distraction.
“I hope all parties will now focus on re-establishing a constructive dialogue for the good of the club and football in Coventry. We would like to ensure that Coventry City Football Club can, in the first instance, continue to play its remaining home matches this season at the Ricoh Arena.”
Mr Appleton sought to clarify the situation by stating: “While CCFCL – which was the tenant under the terms of the lease and licence to occupy the Ricoh Arena – is in administration, Coventry City Football Club (Holdings) Ltd is not and will continue to run as normal under its existing management.”
He said he understood there was a scenario where a compromise between the club and ACL might be agreed and this would be his immediate priority.
Mr Appleton said he had held talks with club manager Steven Pressley, playing and non-playing staff to try and reassure them over the situation.
