Coventry City heads for High Court under threat of administration

THE holding company behind Coventry City Football Club heads for the High Court today to face an administration order brought against it by the owners of the club’s home, the Ricoh Arena.

The move comes as the club’s owner Sisu said it had placed a non-operating property subsidiary into administration. Sisu has claimed the move does not affect the playing side of the club.

The order application is being brought against Sisu by Arena Coventry Ltd, which manages the arena on behalf of joint owners the Alan Edward Higgs Charity and Coventry City Council.

Should the order be upheld then the club could be barred from the ground and forced to play the remaining games of this season elsewhere.

It is understood the club has been in talks with the Football league with a view to playing the games at another league ground within the West Midlands.

Despite the subsidiary being placed into administration, the club has stressed the playing side of the business is under no threat. It said the subsidiary owned no material assets and had no employees.

It has also confirmed that all staff wages, PAYE and all other creditor commitments will continue to be met.

It is thought the club owes the arena around £1.3m in unpaid rent. Compromises have been sought over the past year but income has been restricted due to the club’s position in League 1.

The club’s bank accounts have been frozen and in a move reminiscent of near-neighbour Birmingham City, the club has had a transfer embargo slapped on it by the league for failing to file annual accounts.

Should the administration order upheld then the club could face a 10-point penalty. Such a move would severely hamper new manager Steven Pressley’s attempts to get the club into the League 1 play-offs.