Court of Appeal throws out Coventry City’s legal action

The Court of Appeal has dismissed Coventry City FC’s bid for a judicial review into the sale of the Ricoh Arena by Coventry City Council in 2014.

Rugby union club Wasps relocated to the city and bought the stadium in the aftermath of a spectacular falling-out between the football club and city council which resulted in Coventry City playing its home games in Northampton.

There has been protracted legal action and frosty relationships since, as the football club’s owner Sisu pursued its claim.

Sisu had maintained the council had undervalued the stadium by almost £30m when it was sold to Wasps Rugby Club for £21m. It sought to argue this meant the deal had not been made on commercial terms under EU state aid rules, so sought a judicial review.

Today, the Court of Appeal upheld the original decision of July 2017 and dismissed Sisu’s appeal.

A joint statement from council leader Cllr George Duggins and the leader of the Conservative opposition Cllr Gary Ridley said they hope “that Sisu will accept this as the end of all legal action”.

It said: “We are delighted with today’s judgement which once again justifies why we have robustly defended all claims brought by Sisu-related companies over recent years.

“Sisu has continually sought to re-open decisions taken by the council more than four years ago on 7 October 2014. We have always remained steadfast in our belief that those decisions were appropriate, lawful and in the best interests of Coventry tax payers.”

Coventry City said it “acknowledges the judgement” while looking to distance itself from the legal action.

In a statement, it said: “As has been stated previously, the Football Club and its staff continue to fully focus on the day-to-day running of the club, and we have no direct involvement in the court case.

“The club can also confirm again that we are not liable for any costs in relation to this court case, and that all costs are incurred by the club’s owners.”

Before the judgement was handed down in the Court of Appeal, Coventry City had issued a public plea to Wasps to start talks about the football club continuing to play its home games at the Ricoh Arena.

Its current deal runs to the end of this season and warned that its place in the Football League is “at risk” if it is unable to agree an extension.

It said: “The Ricoh Arena is currently the only suitable option available for the club to play home matches in Coventry.”