johnniericoh
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[h=1]Ricoh Arena offers to massively reduce rent to Sky Blues - and take Northampton Town to High Court[/h]30 Jul 2013 17:31The part-council owned Arena Coventry Limited (ACL) has tabled a new ten-year rent offer as a condition for signing a Company Voluntary Arrangement (CVA) to bring the club out of administration
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Ricoh Arena
Ricoh Arena bosses have offered to dramatically lower rent to keep the Sky Blues in Coventry - and are taking Northampton Town to the High Court over a proposed groundshare.
The part-council owned Arena Coventry Limited (ACL) has tabled a new ten-year rent offer as a condition for signing a Company Voluntary Arrangement (CVA) to bring the club out of administration.
But there is no offer on the table for talks with Coventry City and hedge fund owners Sisu/Otium about part ownership of the stadium - despite suggestions earlier today in an open letter from Coventry City Council leader Ann Lucas to Sisu boss Joy Seppala, revealed in the Telegraph.
Sources say ACL will claim to have offered the best possible deal to keep the Sky Blues in Coventry - rather than moving to Northampton Town's Sixfields stadium.
But the terms of the offer may lead many fans to conclude it could be a non-starter - as Ms Seppala has long wanted to buy into the Ricoh Arena to support the football club's revenue.
The Telegraph has learned ACL's offer is also conditional on Sisu and related companies dropping their High Court application for a judicial review against Coventry City Council's £14million taxpayer deal which bought out ACL's mortgage from Yorkshire Bank in January.
The Telegraph understands the new rental offer is £150,000-a-year while the club remains in Division One - down from £1.3million-a-year.
It is a huge drop on the previously offered £400,000-a-year rent, rejected by Coventry City bosses earlier this year before ACL sought High Court action to put the club in administration, resulting in Sisu placing one company - Coventry City Football Club Limited - in administration.
A deal could not be struck earlier this year because there was no agreement over how much the club and stadium would retain in matchday revenues, such as from food and drink sales.
The ACL offer revealed today includes discussions about Coventry City obtaining more matchday revenue, including food and drink sales, which are tied up in a contract with private company Compass.
The deal tabled today at a crucial creditors' meeting with administrator Paul Appleton would see the rent go up to £400,000 if the Sky Blues are promoted to the Championship, and down to £100,000 if they are relegated to Division Two.
Meanwhile, ACL has revealed it has issued High Court proceedings against Northampton Town over plans for Coventry City to play their 'home' games at Sixfields stadium for up to five years, while Sisu/Otium seeks to build a new stadium in the Coventry area.
ACL accuses Northampton Town of inducing Sisu/Otium to breach Coventry City's 40-year licence and lease agreement to play home games at the Ricoh Arena.
An ACL spokesman said: "We've been left with little option but to issue proceedings against them in the High Court."
Today's crucial Coventry City Football Club Limited creditors' meeeting ended in another adjournment until Friday.
It means more frustration for fans and uncertainty over whether the club can come out of administration, or face liquidation.
The further delay means the earliest the Sky Blues can come out of administration and have a transfer embargo lifted is 32 days away. The transfer window is due to close at the end of August.
A statement from Paul Appleton, joint administrator for CCFC Ltd, said: "At today's reconvened creditors' meeting, ACL put a resolution to the meeting that there should be one final adjournment.
"That resolution was passed in accordance with the Insolvency Rules 1986. Accordingly, the meeting was adjourned to Friday August 2 at 10am."
Sky Blues owners Sisu/Otium were keen for ACL to sign Mr Appleton's proposed CVA to enable the club to exit administration within 28 days. It would return £590,000 after the Sky Blues' non-payment of £1.3million in rent.
Mr Appleton had said the alternative is liquidation, and a possible 15-point Football League penalty this season.
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Ricoh Arena bosses have offered to dramatically lower rent to keep the Sky Blues in Coventry - and are taking Northampton Town to the High Court over a proposed groundshare.
The part-council owned Arena Coventry Limited (ACL) has tabled a new ten-year rent offer as a condition for signing a Company Voluntary Arrangement (CVA) to bring the club out of administration.
But there is no offer on the table for talks with Coventry City and hedge fund owners Sisu/Otium about part ownership of the stadium - despite suggestions earlier today in an open letter from Coventry City Council leader Ann Lucas to Sisu boss Joy Seppala, revealed in the Telegraph.
Sources say ACL will claim to have offered the best possible deal to keep the Sky Blues in Coventry - rather than moving to Northampton Town's Sixfields stadium.
But the terms of the offer may lead many fans to conclude it could be a non-starter - as Ms Seppala has long wanted to buy into the Ricoh Arena to support the football club's revenue.
The Telegraph has learned ACL's offer is also conditional on Sisu and related companies dropping their High Court application for a judicial review against Coventry City Council's £14million taxpayer deal which bought out ACL's mortgage from Yorkshire Bank in January.
The Telegraph understands the new rental offer is £150,000-a-year while the club remains in Division One - down from £1.3million-a-year.
It is a huge drop on the previously offered £400,000-a-year rent, rejected by Coventry City bosses earlier this year before ACL sought High Court action to put the club in administration, resulting in Sisu placing one company - Coventry City Football Club Limited - in administration.
A deal could not be struck earlier this year because there was no agreement over how much the club and stadium would retain in matchday revenues, such as from food and drink sales.
The ACL offer revealed today includes discussions about Coventry City obtaining more matchday revenue, including food and drink sales, which are tied up in a contract with private company Compass.
The deal tabled today at a crucial creditors' meeting with administrator Paul Appleton would see the rent go up to £400,000 if the Sky Blues are promoted to the Championship, and down to £100,000 if they are relegated to Division Two.
Meanwhile, ACL has revealed it has issued High Court proceedings against Northampton Town over plans for Coventry City to play their 'home' games at Sixfields stadium for up to five years, while Sisu/Otium seeks to build a new stadium in the Coventry area.
ACL accuses Northampton Town of inducing Sisu/Otium to breach Coventry City's 40-year licence and lease agreement to play home games at the Ricoh Arena.
An ACL spokesman said: "We've been left with little option but to issue proceedings against them in the High Court."
Today's crucial Coventry City Football Club Limited creditors' meeeting ended in another adjournment until Friday.
It means more frustration for fans and uncertainty over whether the club can come out of administration, or face liquidation.
The further delay means the earliest the Sky Blues can come out of administration and have a transfer embargo lifted is 32 days away. The transfer window is due to close at the end of August.
A statement from Paul Appleton, joint administrator for CCFC Ltd, said: "At today's reconvened creditors' meeting, ACL put a resolution to the meeting that there should be one final adjournment.
"That resolution was passed in accordance with the Insolvency Rules 1986. Accordingly, the meeting was adjourned to Friday August 2 at 10am."
Sky Blues owners Sisu/Otium were keen for ACL to sign Mr Appleton's proposed CVA to enable the club to exit administration within 28 days. It would return £590,000 after the Sky Blues' non-payment of £1.3million in rent.
Mr Appleton had said the alternative is liquidation, and a possible 15-point Football League penalty this season.
