Coventry City withdraws points deduction appeal
COVENTRY CITY has withdrawn an appeal against the ten point deduction it incurred for entering administration.
A formal appeal was submitted last Thursday. But now the club has said the appeal has been withdrawn following legal advice.
The points deduction dropped Coventry from tenth to 14th in the League One table and ended its – admittedly slim – hopes of reaching the end-of-season promotion play-offs.
The punishment was triggered after a High Court hearing ruled that the football club was “in administration”.
Sisu, the London-based consortium which owns the Sky Blues, based its appeal on the argument that division of the club that is in administration does not hold any assets or staff of its own.
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 argued that Coventry City Football Club (Holdings) Ltd, which is not in administration, is the company with whom the Football League should be dealing.
The club is being allowed to complete the season at the Ricoh Arena, its home since 2005, despite a year-long row over a claim for unpaid rent of £1.3m by the stadium’s owners, Arena Coventry Limited (ACL).
