Reasonable figure is `north of £150,000 a year' says Fisher after rejecting Arena chiefs' offer to halve it to £650,000
THE Sky Blues and Ricoh stadium bosses appear far apart in negotiations over setting a new rent, after the club mooted a figure “north of £150,000“ a year.
The suggestion by Coventry City Football Club chief executive Tim Fisher is at odds with Arena Coventry Limited's (ACL) offer to halve the rent to £650,000-a-year.
Both sides have stated they do not want to publicly discuss commercial negotiations.
But on Saturday the Telegraph revealed senior figures at Coventry City Council ­ which owns ACL alongside the Alan Edward Higgs Charity ­ had been briefed the club had rejected the £650,000 offer.
The deficit-hit football club and hedge fund owners Sisu claim the current rent of over £1.2million is far higher than the market rate, especially now the club has been relegated to League One.
They have refused to make monthly payments since April ­ a month before the Sky Blues were relegated.
Mr Fisher said: “I think we have to come up with a reasonable number ­ a number which will be north of £100,000 or £150,000 without a shadow of a doubt, but allows us to balance our finances in a better fashion, but also allows ACL to move their business forward without leaving a gaping hole.“
Both sides say negotiations are continuing, despite media reporting of their respective bargaining positions.
The Telegraph understands the Sky Blues have been given until September 13 to reach a deal. ACL took the Sky Blues to the High Court earlier this month over non-payment of five months of £100,000 instalments into a mutually arranged bank account ­ in which previous deposited reserves, withdrawn recent ly by ACL to ensure pay ment, are about to run out.
Rumours have been rife the club ­ which announced op erating losses of £6.7 million for 2010/11 in June ­ could face liquidation unless it cuts costs and finds new revenue streams. But Coventry City Council leader John Mutton is among those who have pointed out any movement on rent would not make a major impression on the club’s deficit. Most of the club’s expenditure goes on players’ wages.
New Football League rules dictate a maximum 65 per cent of a club’s revenue can be spent on paying players.
With the Sky Blues’ revenue expected to be half last season’s £11million, it could leave a players’ wage bill of around £3.5million.
Mr Fisher says Sisu is funding League One’s second highest players’ wage bill.
Profits at ACL were £470,000 last year, for a project designed to deliver a
return to city taxpayers on the council’s investment and create jobs.
They are expected to rise to around £1 million this year, but a £650,000 rent drop in rent would be a large hit – and much larger without a football club playing there.
The Sky Blues also want the Higgs charity’s 50 per cent stake in the Ricoh company, long valued by some at around £10 million, to obtain new income streams from commercial activities, including hotel and conference bookings.
The threat of administration or liquidation was alleviated in June when SISU boss Joy Seppala belatedly agreed to sign off the football club’s 2010/11 accounts, and underwrite any further losses this year.
THE Sky Blues and Ricoh stadium bosses appear far apart in negotiations over setting a new rent, after the club mooted a figure “north of £150,000“ a year.
The suggestion by Coventry City Football Club chief executive Tim Fisher is at odds with Arena Coventry Limited's (ACL) offer to halve the rent to £650,000-a-year.
Both sides have stated they do not want to publicly discuss commercial negotiations.
But on Saturday the Telegraph revealed senior figures at Coventry City Council ­ which owns ACL alongside the Alan Edward Higgs Charity ­ had been briefed the club had rejected the £650,000 offer.
The deficit-hit football club and hedge fund owners Sisu claim the current rent of over £1.2million is far higher than the market rate, especially now the club has been relegated to League One.
They have refused to make monthly payments since April ­ a month before the Sky Blues were relegated.
Mr Fisher said: “I think we have to come up with a reasonable number ­ a number which will be north of £100,000 or £150,000 without a shadow of a doubt, but allows us to balance our finances in a better fashion, but also allows ACL to move their business forward without leaving a gaping hole.“
Both sides say negotiations are continuing, despite media reporting of their respective bargaining positions.
The Telegraph understands the Sky Blues have been given until September 13 to reach a deal. ACL took the Sky Blues to the High Court earlier this month over non-payment of five months of £100,000 instalments into a mutually arranged bank account ­ in which previous deposited reserves, withdrawn recent ly by ACL to ensure pay ment, are about to run out.
Rumours have been rife the club ­ which announced op erating losses of £6.7 million for 2010/11 in June ­ could face liquidation unless it cuts costs and finds new revenue streams. But Coventry City Council leader John Mutton is among those who have pointed out any movement on rent would not make a major impression on the club’s deficit. Most of the club’s expenditure goes on players’ wages.
New Football League rules dictate a maximum 65 per cent of a club’s revenue can be spent on paying players.
With the Sky Blues’ revenue expected to be half last season’s £11million, it could leave a players’ wage bill of around £3.5million.
Mr Fisher says Sisu is funding League One’s second highest players’ wage bill.
Profits at ACL were £470,000 last year, for a project designed to deliver a
return to city taxpayers on the council’s investment and create jobs.
They are expected to rise to around £1 million this year, but a £650,000 rent drop in rent would be a large hit – and much larger without a football club playing there.
The Sky Blues also want the Higgs charity’s 50 per cent stake in the Ricoh company, long valued by some at around £10 million, to obtain new income streams from commercial activities, including hotel and conference bookings.
The threat of administration or liquidation was alleviated in June when SISU boss Joy Seppala belatedly agreed to sign off the football club’s 2010/11 accounts, and underwrite any further losses this year.
