skybluebeduff
Well-Known Member
CLAIMS by Coventry City boss Tim Fisher that the Ricoh Arena company could be heading for administration have been dismissed as “bizarre speculation” by stadium managers.
An increasingly acrimonious fall-out after months of negotiations continued yesterday as chief executive Tim Fisher publicly speculated over the financial viability of Arena Coventry Ltd.
Our exclusive report on Tuesday about the dispute over stadium rent and ownership revealed ACL would not deny rumours its main creditor, Yorkshire Bank, had called accountants Deloitte into ACL to help restructure its debts, amid fears over its ability to service its £21million mortgage.
Mr Fisher yesterday escalated the war of words by speculating ACL could be heading for administration – claiming Yorkshire Bank and Deloitte would discover no restructuring was possible.
Despite the loss-making football club and its private equity fund owners Sisu withholding up to £1million of rental payments since March, Mr Fisher attributed ACL’s “high debts” to other alleged financial problems.
Mr Fisher alleged the club did not owe £1million in rent, as it had been paying ACL monthly matchday costs previously included in rental payments - amounting to a sixth of the rent.
In response to all Mr Fisher’s claims, ACL - owned equally by Coventry City Council and the Alan Edward Higgs Charity - issued the following statement through its London-based PR firm Weber Shandwick: “The ACL board met yesterday and it discussed the current non-payment of rent and the need for a solid plan from Coventry City Football Club and its owners, the Mayfair-based hedge fund Sisu.
“The situation remains that, as of December 1, more than £1 million in outstanding rent will be owed.
“As we have stated, we have been patiently discussing this issue for nine months but when rent began to be withheld, ACL began to charge matchday costs to cover staffing and overheads for each match.
“These ensure that the stadium can open and that fans can have a safe and enjoyable time. Several of these services - some of which were included in the rent, some not - are sold on for a profit by CCFC and Sisu.
“ACL’s business is strong and healthy and we look forward to the future with confidence. Instead of peddling absurd speculation, CCFC needs to focus on a plan to safeguard its future - a future that lies entirely in its hands and in those of its wealthy owners.”
Fans’ groups on message boards widely speculated it is a last-ditch attempt by Sisu to obtain the Ricoh stadium at a cheap price.
Opposition Tory councillor Kevin Foster called on Labour council leader John Mutton to issue a statement, and added: “There has got to be a concern that withholding rent payments is being used as a deliberate tactic to reduce the value of the ACL shares by putting it into financial difficulty.”
Mr Fisher declined to comment, but speculated ACL and the club’s future could ultimately be down to Yorkshire Bank.
The relegated Division One club accuses ACL of making an unreasonable offer way above market value of halving the rent to £650,000 a year.
It is thought ACL has at least £15million outstanding on the £21million mortgage.
ACL had profits of £470,000 last year in 2010/11 - and insists it does not rely on rent from the football club.
Former ACL boss Daniel Gidney - who left as the talks gathered pace - estimated this summer those profits would double this year, before the protracted rent fall-out. No accounts have been filed.
The loss-making Sky Blues have been desperate to obtain the Higgs charity’s half-stake in the Ricoh – previously valued by some at around £10 million – to gain new income streams from commercial activities, including hotel and conference bookings.
We revealed on Tuesday months of negotiations over those shares had broken down, while Mr Fisher accused ACL of pulling out of rent talks.
The High Court in August confirmed ACL has a legal right to call in arrears over the current £100,000-a-month rent arrangement.
The saga follows months of speculation over the club - which recorded £6.7million losses in 2010/11 - going into administration or being liquidated, despite Sisu boss Joy Seppala agreeing to underwrite any further losses this year.
The council and ACL want Sisu to provide a business plan not just for the Sky Blues, but for the land around the stadium earmarked for hotel and leisure redevelopment.
from CET website.
An increasingly acrimonious fall-out after months of negotiations continued yesterday as chief executive Tim Fisher publicly speculated over the financial viability of Arena Coventry Ltd.
Our exclusive report on Tuesday about the dispute over stadium rent and ownership revealed ACL would not deny rumours its main creditor, Yorkshire Bank, had called accountants Deloitte into ACL to help restructure its debts, amid fears over its ability to service its £21million mortgage.
Mr Fisher yesterday escalated the war of words by speculating ACL could be heading for administration – claiming Yorkshire Bank and Deloitte would discover no restructuring was possible.
Despite the loss-making football club and its private equity fund owners Sisu withholding up to £1million of rental payments since March, Mr Fisher attributed ACL’s “high debts” to other alleged financial problems.
Mr Fisher alleged the club did not owe £1million in rent, as it had been paying ACL monthly matchday costs previously included in rental payments - amounting to a sixth of the rent.
In response to all Mr Fisher’s claims, ACL - owned equally by Coventry City Council and the Alan Edward Higgs Charity - issued the following statement through its London-based PR firm Weber Shandwick: “The ACL board met yesterday and it discussed the current non-payment of rent and the need for a solid plan from Coventry City Football Club and its owners, the Mayfair-based hedge fund Sisu.
“The situation remains that, as of December 1, more than £1 million in outstanding rent will be owed.
“As we have stated, we have been patiently discussing this issue for nine months but when rent began to be withheld, ACL began to charge matchday costs to cover staffing and overheads for each match.
“These ensure that the stadium can open and that fans can have a safe and enjoyable time. Several of these services - some of which were included in the rent, some not - are sold on for a profit by CCFC and Sisu.
“ACL’s business is strong and healthy and we look forward to the future with confidence. Instead of peddling absurd speculation, CCFC needs to focus on a plan to safeguard its future - a future that lies entirely in its hands and in those of its wealthy owners.”
Fans’ groups on message boards widely speculated it is a last-ditch attempt by Sisu to obtain the Ricoh stadium at a cheap price.
Opposition Tory councillor Kevin Foster called on Labour council leader John Mutton to issue a statement, and added: “There has got to be a concern that withholding rent payments is being used as a deliberate tactic to reduce the value of the ACL shares by putting it into financial difficulty.”
Mr Fisher declined to comment, but speculated ACL and the club’s future could ultimately be down to Yorkshire Bank.
The relegated Division One club accuses ACL of making an unreasonable offer way above market value of halving the rent to £650,000 a year.
It is thought ACL has at least £15million outstanding on the £21million mortgage.
ACL had profits of £470,000 last year in 2010/11 - and insists it does not rely on rent from the football club.
Former ACL boss Daniel Gidney - who left as the talks gathered pace - estimated this summer those profits would double this year, before the protracted rent fall-out. No accounts have been filed.
The loss-making Sky Blues have been desperate to obtain the Higgs charity’s half-stake in the Ricoh – previously valued by some at around £10 million – to gain new income streams from commercial activities, including hotel and conference bookings.
We revealed on Tuesday months of negotiations over those shares had broken down, while Mr Fisher accused ACL of pulling out of rent talks.
The High Court in August confirmed ACL has a legal right to call in arrears over the current £100,000-a-month rent arrangement.
The saga follows months of speculation over the club - which recorded £6.7million losses in 2010/11 - going into administration or being liquidated, despite Sisu boss Joy Seppala agreeing to underwrite any further losses this year.
The council and ACL want Sisu to provide a business plan not just for the Sky Blues, but for the land around the stadium earmarked for hotel and leisure redevelopment.
from CET website.