Coventry City appeals over administration-linked points deduction

COVENTRY City has appealed against a ten-point deduction for going into administration.

The appeal is linked to a complicated argument about which part of the club is actually in administration.

A High Court hearing in London last week ruled that the League One club was “in administration”, triggering the automatic Football League punishment.

But Sisu, the London-based consortium which owns the Sky Blues, argues the part of the club that is in administration does not hold any assets or staff of its own and has submitted an appeal to the League.

The High Court ruling decided that the subsidiary, Coventry City Football Club Ltd, owns the so-called ‘golden share’, which guarantees membership of the League.

But Sisu argues that Coventry City Football Club (Holdings) Ltd, which is not in administration, is the company with whom the Football League should be dealing.

A statement released by the club yesterday afternoon said: “Coventry City Football Club (Holdings) Ltd has submitted an appeal to the Football League to have the ten points deducted last week reinstated.

“The points were deducted following the administration of CCFC Ltd.

“The club will keep supporters informed of the progress of the appeal.”

Confirming the appeal – which was lodged just before the seven day deadline from the orginal High Court hearing expired – Paul Appleton, the administrator in charge of CCFC Ltd, said: “I understand Coventry City FC Holdings have today appealed against the ten-point deduction imposed after Coventry City FC Limited was placed into administration.
 
“Having spoken to Holdings legal team, I have advised the appeal can be made on a joint basis between Holdings and Limited on the understanding it does not prejudice my on-going investigation as joint administrator in any way.”

However, the decision to appeal against the ten point deduction won’t be popular with all supporters.

With promotion via the play-offs very much an outside bet, some fans argue that the club would be better off taking the ten point ‘hit’ now rather than next season when the team, possibly under new ownership, might have a more realistic chance of promotion.

Coventry City was originally taken to court to face an administration order from its Ricoh Arena landlords, Arena Coventry Ltd, over a year’s unpaid rent of £1.3m.

It is understood the appeal agaisnt a point deduction has to be heard within 21 days.