Coventry City facing the threat of administration as High Court action begins

COVENTRY City FC is facing the threat of administration after the owners of the Ricoh Arena stadium went to the High Court claiming they are owed £1.3m in rent.

Arena Coventry Limited (ACL) has made an application to the High Court in London to request that it make an administration order against the League One club.

The Sky Blues’ owner, London-based hedge fund Sisu, dispute the terms of the lease.

ACL chairman Nicholas Carter said: “It is highly unfortunate that we have had to take this course of legal action. Had we not taken this action, then the alternative might have been catastrophic for CCFC.

“We are owed a considerable amount of money in rent arrears. While it is imperative that ACL takes action to recover these arrears and to stop the arrears growing, it is important for us to find a solution that can provide for the survival of the Sky Blues.”

ACL, who have also suggested the court action could pave the way for new buyers for the club, argue that Sisu have failed to honour a verbal agreement over a deal which would lower the annual rent to £400,000.

Going into administration would almost certainly mean a ten point deduction for Coventry, who still retain hopes of promotion from League One.