Why do our potential investors need to wait for admin to buy the Arena? (1 Viewer)

[PorkyCovvy]

The Sky Blue Trust claim there are interested parties who want to invest significantly into the club and buy the arena.

But why would a potential investor need to wait for SISU to go into admin to acquire the arena? Why not buy the Arena at the going rate along with the debt built up by SISU and force them out themselves? SISU would have little or no chance of keeping the club as their business model would never be sustainable without a home. The new investors would have the upper hand and could force this through quicker and would surely be the preferred bidder of any Administration company placed in charge of Coventry City? And it wouldn't show Coventry City Council as playing Russian roulette with the city's football club.

 

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[coundonskyblue]

I imagine sisu could launch a legal challenge to it on the basis ccfc have first refusal on the higgs share.

 

[PorkyCovvy]

I imagine sisu could launch a legal challenge to it on the basis ccfc have first refusal on the higgs share.

That expired didn't it?

 

[Grendel]

I imagine sisu could launch a legal challenge to it on the basis ccfc have first refusal on the higgs share.

No they couldnt

 

[lordsummerisle]

I imagine sisu could launch a legal challenge to it on the basis ccfc have first refusal on the higgs share.

If that is the case, then wouldn't that option have a considerable value? Think it was to buy the half-share at £6million?

How much is the Arena worth? £30-60million? Then that option could be worth upwards of £15million, would it need to be bought off Sisu as part of any administration?

 

[coundonskyblue]

<p>

That expired didn't it?

I thought it was until 2015? I might be wrong though.

 

[Spencer]

No they couldnt

Why couldn't they?

 

[coundonskyblue]

<p>

Why couldn't they?

Just because he instinctively disagrees with anything I say.

I was slagging off Richardson and Robinson the other day and he started sticking up for them.

 

[Bluegloucester]

If that is the case, then wouldn't that option have a considerable value? Think it was to buy the half-share at £6million?

How much is the Arena worth? £30-60million? Then that option could be worth upwards of £15million pounds, would it need to be bought off Sisu as part of any administration?

As I understand it, the option to buy Higgs 50% of ACL is for c£10m. Are CCFC in a position to buy it? No. ACL is not worth £30-60m, probably half that. CCC have a veto over the sale to any buyer and will not deal with Sisu. The option on the open market is more likely to be worth about £5m. A stumbling block could be having to work with CCC and their bureaucracy.

 

[lordsummerisle]

As I understand it, the option to buy Higgs 50% of ACL is for c£10m. Are CCFC in a position to buy it? No. ACL is not worth £30-60m, probably half that. CCC have a veto over the sale to any buyer and will not deal with Sisu. The option on the open market is more likely to be worth about £5m. A stumbling block could be having to work with CCC and their bureaucracy.

Didn't it cost £113 million to build?

Do you seriously think it would be worth only £15million?

 

[Bluegloucester]

Didn't it cost £113 million to build?

Do you seriously think it would be worth only £15million?

The option is to buy 50% of ACL, not the freehold of the stadium.

The other 50% owned by CCC may be available to the right buyer. The value of ACL has been estimated at £20-30m.

 

[sky blue john]

porky cov are you for real ?
I know we need Sisu to leave but no investor is going to give sisu 45 + million !!!

 

[Danceswithhorses]

Didn't it cost £113 million to build?

Do you seriously think it would be worth only £15million?

IIRC, It's the leasehold that is ACL's asset, not the freehold

 

[lordsummerisle]

IIRC, It's the leasehold that is ACL's asset, not the freehold

Who actually owns the freehold and how much is that worth? Was it a 99 year lease at the start?

 

[dongonzalos]

The Sky Blue Trust claim there are interested parties who want to invest significantly into the club and buy the arena.

But why would a potential investor need to wait for SISU to go into admin to acquire the arena? Why not buy the Arena at the going rate along with the debt built up by SISU and force them out themselves? SISU would have little or no chance of keeping the club as their business model would never be sustainable without a home. The new investors would have the upper hand and could force this through quicker and would surely be the preferred bidder of any Administration company placed in charge of Coventry City? And it wouldn't show Coventry City Council as playing Russian roulette with the city's football club.

Because they have to deal with SISU.

If they wait for administration they get to deal with people who will have to conduct business in an honest transparent and straight forward manner.

 

[Bluegloucester]

Who actually owns the freehold and how much is that worth? Was it a 99 year lease at the start?

CCC own the freehold, no idea of its value.

 

[coundonskyblue]

<p>

Who actually owns the freehold and how much is that worth? Was it a 99 year lease at the start?

Coventry north regeneration ltd holds the freehold, which is a council owned company.

Lease is for 50 years. To be honest ccfc would be stupid to try and buy the freehold. No gain to it.

 

[Grendel]

Why couldn't they?

They have an option to buy and have not excercised the option. With 2 court cases against them they will hardly try and mount a third will they. Zero chance.

 

[lordsummerisle]

CCC own the freehold, no idea of its value.

Imagine that would be closer to the £113million build cost(an awful lot if paid for by the club before running out of money).

How much did or does ACL pay CCC for the leasehold then?

 

[Spencer]

Because they have to deal with SISU.

If they wait for administration they get to deal with people who will have to conduct business in an honest transparent and straight forward manner.

Do you really believe any prospective purchaser is going to deal with ACL in an, "honest transparent and straight forward manner?"

Anybody acquiring the business will do so at the best possible price to them - to think otherwise is madness.

Indeed, if our new owners dealt in such a manner the majority of our fans would harass them for being ripped off by other clubs when acquiring new players!

 

[AFCCOVENTRY]

Didn't it cost £113 million to build?

Do you seriously think it would be worth only £15million?

A huge chunk of that was an EU grant due to it be a brownfield regeneration and contaminated site being developed to generate the area.

 

[Bluegloucester]

Imagine that would be closer to the £113million build cost(an awful lot if paid for by the club before running out of money).

How much did or does ACL pay CCC for the leasehold then?

I wouldn't think it is worth anything like the build cost. The freehold value is based on the land value, reversionary value of the stadium upon expiry of the lease. I believe the lease was paid up front to the freeholders. Not sure of the original lease value. OSB will know.

 

[TurkeyTrot]

In simply terms, CCFC is pretty much worthless on its own, linked to the Arena and the developement land around the arena it has some value. SISU want their money back, so if you were to buy CCFC as it is, you're paying however how much SISU want for CCFC that is worthless and would then have to strike a deal with ACL.
SISU goes pop, pick CCFC up for it's real value then deal with ACL for a share in the Arena and CCC for the developement land.
Well that's how I see it anyway.

 

[dongonzalos]

Do you really believe any prospective purchaser is going to deal with ACL in an, "honest transparent and straight forward manner?"

Anybody acquiring the business will do so at the best possible price to them - to think otherwise is madness.

Indeed, if our new owners dealt in such a manner the majority of our fans would harass them for being ripped off by other clubs when acquiring new players!

Yes of course they will negotiate the best deal for themselves.
However they may actually know how to professionally conduct a deal.

 

[PorkyCovvy]

porky cov are you for real ?
I know we need Sisu to leave but no investor is going to give sisu 45 + million !!!

Where have I stated anyone will give SISU anything like that? In fact, the opening gambit questioned why a potential investor hasn't forced SISU into administration themselves via taking over the Ricoh.

I suspect you are a tad thick.

 

[Spencer]

Yes of course they will negotiate the best deal for themselves.
However they may actually know how to professionally conduct a deal.

So what is wrong with the way have conducted theirselves? I can't imagine anyone would pay the rent, if they considered it unfair,, and then try and reclaim it afterwards (as they would have no chance of getting anything back).

SISU may play hard ball but I don't see many businesses, in this regard at least, dealing any differently.

 

[skyblueman]

Imagine that would be closer to the £113million build cost(an awful lot if paid for by the club before running out of money).

How much did or does ACL pay CCC for the leasehold then?

Liecester's stadium - similar capacity cost £37Million to build (not sure if the value of the land is included in that?) was just sold for £19Million to the owners of LCFC so I imagine a hefty discount on this £113Million would be on offer

Incidently how come the Ricoh cost 3 times as much as the King Power stadium to build???

 

[lordsummerisle]

Liecester's stadium - similar capacity cost £37Million to build (not sure if the value of the land is included in that?) was just sold for £19Million to the owners of LCFC so I imagine a hefty discount on this £113Million would be on offer

Incidently how come the Ricoh cost 3 times as much as the King Power stadium to build???

It's about 5 times better though!

 

[ROLLO]

Incidently how come the Ricoh cost 3 times as much as the King Power stadium to build???

If i recall correctly a large part of the cost of the Richo was the decontamination of the land around the gas works

 

[rupert_bear]

Who said the potential buyers are waiting for us to be put into admin before taking over, my belief is a lot of chat has happened and still is. I believe the admin threat on the 22nd was introduced to put sisu into a corner and an alternatiive route if sisu renage on any deal, as they did last year

 

[Sub]

do you have insider information rupert bear?

 

[Mucca Mad Boys]

Who said the potential buyers are waiting for us to be put into admin before taking over, my belief is a lot of chat has happened and still is. I believe the admin threat on the 22nd was introduced to put sisu into a corner and an alternatiive route if sisu renage on any deal, as they did last year

I certainly hope we don't have to go into admin to get takenover, if there's a takeover, I want it in normally.

 

[Mary_Mungo_Midge]

I certainly hope we don't have to go into admin to get takenover, if there's a takeover, I want it in normally.

I think we're all of one accord on that one. It would be ironic if SISU, who rode into town with the club 'minutes away from administration', took the same route back out

 

[luwalla]

A huge chunk of that was an EU grant due to it be a brownfield regeneration and contaminated site being developed to generate the area.

they also sold part of the land to tesco , which was around 60 million wasnt it, so they recouped over half of those costs in one deal alone.

 

[grego_gee]

Liecester's stadium - similar capacity cost £37Million to build (not sure if the value of the land is included in that?) was just sold for £19Million to the owners of LCFC so I imagine a hefty discount on this £113Million would be on offer

Incidently how come the Ricoh cost 3 times as much as the King Power stadium to build???

very valid point, Stokes cost £30m.
The Ricoh has a big chunk of casino etc on the side, we don't need that basically we just need the grass and the stands.
We have never "rented" the other parts. I am not sure exactly what the rental agreement includes. But relationships between SISU & CCC soured over their tenure particularly during the Olympics when there was talk of CCFC being locked out of offices and in return CCFC putting photocopiers etc away in locked cupboards.
I think CCFC actually decamped the offices into Ryton and I don't know if they ever returned.
In either case the concept that we lease the Ricoh and it is the home of CCFC, is a bit hollow, no wonder we are worse at home than away!
Basically we rent space of the grass and the stands on a daily basis so many times a season!

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