J
Jack Griffin
Guest
http://www.coventrytelegraph.net/news/news-opinion/bob-ainsworth-mp-wasps-deal-7925386
Writing for the Telegraph, Bob Ainsworth MP explains while the council will be pleased to off-load the Ricoh Arena to Wasps, they won't be celebrating just yet
As the dust begins to settle on last week's momentous decision to sell the Ricoh lease to the Wasps, let's look at what went on and what is likely to happen now.
Senior people at the council have been talking to Wasps for a long time and yet there was little or no consultation or prior warning.
They felt that any confirmation of the deal risked an injunction designed to prevent it and so they had no choice but keep it tight.
The internal management of a decision not shared with many councillors until late in the day will have been their main worry. Externally they were unable to fully consult Coventry Rugby Club. However, as they were never going to give the club a veto on what was planned, it was believed upsetting them was a price they had to pay.
Wasps had been consulted on the agreement that recently brought Sky Blues back to Coventry and were content with the arrangement. But they will now want changes.
They are intent on 100-per-cent ownership of the lease, will have satisfied themselves this purchase cannot be prevented and will have made it clear to all that they do not expect opposition.Sisu may want to satisfy themselves that they cannot prevent this.
Wasps will expect Sisu, now that the council are out of the equation, to reassess their thinking and be prepared to make a deeper and more long-term commitment to the Ricoh.
While they will be reasonable, wanting the club to be successful, business is business and there will be "nowt for nowt". I doubt if they will think the stated plan to build a new stadium is any more realistic than many others do but they will try to make the Ricoh work for the Sky Blues as well as themselves.
Alan Higgs Charity are pleased to be getting more of their money out of the Ricoh investment than they have in recent times expected and in cash up front.
They will be counting the days until they can sign the final papers and hope never to have dealings with Sisu again. The last couple of years have been so stressful for them and a total distraction from the good work they want to get back to in the community.
The council will not have given any thought to the notion, being touted by some, to offer the Ricoh to Sisu at a discount. Why would they?
The idea of a taxpayer-funded discount to the football club while it's owned by a Cayman Island-based company and is carrying so much debt is a nonsense.
However, they will be concerned about the club and will hope they settle into a successful relationship with their new landlords. They will, because of the millions of pounds of debt the club is carrying, have some concerns about the possibility of liquidation.
This would be terrible for Coventry and there would be people who would be, oh so quick, to blame them. However, as all of the debt is owed to the club's owners on the face of things there is no financial advantage to liquidation. However, as we cannot know all of that is goes on within a group of private companies it is something, when so much debt is involved, that will be a worry.
They will be concerned about the ongoing threat of litigation but will feel, having sold the lease with the loan that is being challenged as State aid, to a private investor that they cannot have damaged their chances of success. Particularly if they can show that the whole deal has been properly evaluated by reputable outside people.
They will think they have pulled off a great deal, and brought in a new major sports club too.
While the council has put the Ricoh in good hands and on a firmer footing thereby improving the economic prospects of the city as well as the sporting offer, they will not be celebrating.
After such a prolonged struggle with Sisu, that will be on hold until the litigation is over.
