SkyBlueDubai
New Member
I am writing not as a Pro-Sisu or Pro-Council/ACL, I am writing as a lifelong and genuinely worried Coventry City fan.
Whilst I am sure the comments coming from Tim Fisher in this morning’s Guardian interview are a last ditch attempt of a form of brinkmanship to force ACL's hand back to the table and renegotiate, I think we all need to be aware as Coventry City football supporters the difference between Administration and Insolvency, and if no middle ground is made, how SISU can make money for years to come in putting Coventry City out of business for good.
If SISU were to put Coventry City into Administration, an Administrator would be appointed at a significant cost, to come in, look at all costs, evaluate assets if any, and sell off as many assets as possible in order to pay any debtors outstanding. The debtors could range from players wages, rent costs, stationary, team coach etc. If the administrator deems that there is not enough sell-able assets to cover costs, then he will then declare the business insolvent, effectively not having enough money to continue. Coventry City being liquated means that the club no longer exists, the very same what happened with Wimbledon, 10+ years ago. If in the event someone decided to re-open the club they would have to do so 9 or 10 divisions below like newly formed AFC Wimbledon.
So the question I ask, If Coventry City were to go into Administration, what do they have to sell? They have no assets, just debt – so surely this is not an option?
What people don't realize is what benefit do SISU have putting Coventry City into administration? Let me tell you, absolutely nothing. Yes they walk away from a loss-making business, and yes they potentially write off their investment made into the business, but this potentially allows for someone to come in and take the club on the cheap with a 10 point deduction. Given the bad natured negotiations between CCFC and ACL/Council (Why by the way both parties have behaved despicably), why would SISU just walk away or “get out of town” with nothing.
If ACL/Council and Coventry City don’t come to an agreement, SISU can and more likely will put Coventry City FC into liquidation, meaning, no more Sky Blues, no more Coventry City FC. Why they would do this, if they declare Coventry City FC as insolvent, SISU as a business can make money on their other businesses/funds on something called tax losses. This basically means in a roundabout way, whatever money has been lost in Coventry City FC, SISU would have to pay no tax on future earnings from their other businesses until their losses are recouped.
So I ask my last question, and something for us all to think about…… Do you think it’s more likely SISU put the club into administration, allow someone to have the club on the cheap, and walk away with nothing or do you think it is more likely the liquidate the club, meaning no more CCFC, but make money on the liquidation on tax breaks for years to come?
As fans, going on social media, and chanting SISU out will not keep our beloved club in business, we need them now as much as they need us, as much as it pains me to admit.
Whether you agree with Coventry, ACL or Council’s stand, it is now immaterial, we need the Council and ACL to reconvene negotiations, as fans we need to be more vocal, as be on the side of the club! (Not SISU). The club matters most, now if the Council and ACL do not come to the table, rent payment or no rent payment, OUR LOCAL COUNCIL has played a part closing the club down for good.
Whilst I am sure the comments coming from Tim Fisher in this morning’s Guardian interview are a last ditch attempt of a form of brinkmanship to force ACL's hand back to the table and renegotiate, I think we all need to be aware as Coventry City football supporters the difference between Administration and Insolvency, and if no middle ground is made, how SISU can make money for years to come in putting Coventry City out of business for good.
If SISU were to put Coventry City into Administration, an Administrator would be appointed at a significant cost, to come in, look at all costs, evaluate assets if any, and sell off as many assets as possible in order to pay any debtors outstanding. The debtors could range from players wages, rent costs, stationary, team coach etc. If the administrator deems that there is not enough sell-able assets to cover costs, then he will then declare the business insolvent, effectively not having enough money to continue. Coventry City being liquated means that the club no longer exists, the very same what happened with Wimbledon, 10+ years ago. If in the event someone decided to re-open the club they would have to do so 9 or 10 divisions below like newly formed AFC Wimbledon.
So the question I ask, If Coventry City were to go into Administration, what do they have to sell? They have no assets, just debt – so surely this is not an option?
What people don't realize is what benefit do SISU have putting Coventry City into administration? Let me tell you, absolutely nothing. Yes they walk away from a loss-making business, and yes they potentially write off their investment made into the business, but this potentially allows for someone to come in and take the club on the cheap with a 10 point deduction. Given the bad natured negotiations between CCFC and ACL/Council (Why by the way both parties have behaved despicably), why would SISU just walk away or “get out of town” with nothing.
If ACL/Council and Coventry City don’t come to an agreement, SISU can and more likely will put Coventry City FC into liquidation, meaning, no more Sky Blues, no more Coventry City FC. Why they would do this, if they declare Coventry City FC as insolvent, SISU as a business can make money on their other businesses/funds on something called tax losses. This basically means in a roundabout way, whatever money has been lost in Coventry City FC, SISU would have to pay no tax on future earnings from their other businesses until their losses are recouped.
So I ask my last question, and something for us all to think about…… Do you think it’s more likely SISU put the club into administration, allow someone to have the club on the cheap, and walk away with nothing or do you think it is more likely the liquidate the club, meaning no more CCFC, but make money on the liquidation on tax breaks for years to come?
As fans, going on social media, and chanting SISU out will not keep our beloved club in business, we need them now as much as they need us, as much as it pains me to admit.
Whether you agree with Coventry, ACL or Council’s stand, it is now immaterial, we need the Council and ACL to reconvene negotiations, as fans we need to be more vocal, as be on the side of the club! (Not SISU). The club matters most, now if the Council and ACL do not come to the table, rent payment or no rent payment, OUR LOCAL COUNCIL has played a part closing the club down for good.