Coventry City Council taken to court for Ricoh Arena loan
IN yet another twist in the saga of Coventry City, it has emerged that the football club is taking the city’s council to court over its decision to lend £14m to the firm that runs the Ricoh Arena.
Coventry City Council took out a loan in January so Arena Coventry Limited (ACL) could pay off bank debts.
Now the owners of Coventry City have asked a High Court judge to rule if the council has unlawfully used public funds.
The legal action is the latest move in a row between club owner – London-based consortium Sisu – and ACL over unpaid rent of more than £1m.
In a statement CCFC Holdings confirmed an application had been submitted to the High Court.
The football club was recently docked ten points for entering administration.
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 by ACL for unpaid rent of £1.3m. Coventry City claims the rent it is being charged is too high for a club playing in League One. ACL, in its turn, says it has negotiated a reduction in the rent owed from £1.3m to £400,000.
ACL manages the arena on behalf of joint owners the Alan Edward Higgs Charity and Coventry City Council.
