COVENTRY City have sensationally put part of the club into administration on the eve of a crucial High Court hearing.
The Sky Blues released a statement claiming that Coventry City Football Club Ltd was now in administration – but Coventry City Football Club (Holdings) Ltd would continue as the club’s trading arm.
It was claimed the club will argue with the Football League that this should avoid the ten-point deduction in League One this season.
However, a similar argument put forward by Southampton FC when it put its holding company into administration was rejected by the Football League, suggesting that the Sky Blues are still likely to face a point deduction, effectively ending their play-off dream.
In summary: SISU have decided to put part of the business, which holds the lease, into admin - therefore sacking off the debt to ACL. They transferred everything else to another entity which will continue to trade.
So no ACL ability to get money back. Presumably ACL will lock CCFC out of the Ricoh, which means we need a new home ground. Let's hope the new landlord asks for money up front from SISU FC!!!
Its up to the courts now and going on past cases it will be hard to get the court to believe the companies have no links to each other.... As for the FA if the court decision goes against Sisu with no ground it will mean more points deducted. Sisu past on these matters also will be brought up and as for the last 3 years not filing accounts must surely show they are not very reliable or a viable company to be running a football club.
Sad times, but a day we all knew was coming no matter what opinion or side you fall on..
If CCFC Ltd (as opposed to CCFC Holdings Ltd) did not emerge from administration, would that wipe out the club's history and record in the eyes of the authorities?