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Sky Blues chief looking forward to ‘‘significantly brighter’’ future in letter to staff 27 Jun 2013 08:03 Letter sent from Tim Fisher outlines plans to sell Coventry City Football Club (Holdings) Ltd to Otium Share on printShare on email Tim Fisher The firm running Coventry City is set to be sold, staff have been told. A letter sent from Sky Blues chief executive Tim Fisher to workers outlines plans to sell Coventry City Football Club (Holdings) Ltd to Otium. It tells staff that their contracts of employment will be switched to Otium and looks forward to a ‘‘significantly brighter’’ future. Both companies are related to Joy Seppala’s hedge fund Sisu – and both have Tim Fisher and Mark Labovitch as directors.
The move could create uncertainty over contracts for staff, including players. It would effectively bring two existing Sky Blues companies into one – with a new name but the same people at the helm. It follows criticism that the club’s playing assets had been spread over two companies – Holdings, which retained assets including players’ contracts; and Coventry City Football Club Limited, into which went liabilities of up to £70million and which went into administration in March. Administrator Paul Appleton is proposing CCFC Ltd exits administration through a sale to Otium . He and the League have clarified the Football League’s crucial golden share for the right to play in the league was previously in CCFC Ltd.
It had prompted challenges to the League from Coventry City takeover hopefuls and Ricoh firm Arena Coventry Limited that the players’ contracts should have rested with same company which had the golden share. A sale of Holdings to Otium is part of Sisu/Otium’s attempts to win back the suspended golden share from the League – and unite the playing assets in line with Football League rules. The Football League is to scrutinise Sisu/Otium’s plans to move the Sky Blues out of the Ricoh and Coventry for up to three years while they build a new stadium in the Coventry area.
The League is also awaiting further developments from the administrator before eventually deciding whether or not to sanction Mr Appleton’s proposed sale of CCFC to Otium by awarding it the golden share. The leaked email/letter, dated June 21, states: “Coventry City Football Club (Holdings) Limited (CCH), which as you will know has for many year been running the club and in particular has been making all payments to its employees, is planning to sell its interest in the club. “The purpose of this letter is to let you know that it is accordingly intended that your contract of employment will transfer to Otium, which is the immediate parent company of CCH.
Tim Fisher says Coventry City are closing in on deal for new stadium site “In the case of playing staff registered with the Football league and the FA, it is proposed that the transfer of employment will follow approval by the Football League and the FA. “In all cases, your terms and conditions will be unchanged and this transfer will be seen as continuous for the purposes of employment legislation.’’ The email concludes by thanking staff for their “loyalty” over “particularly difficult” weeks, and adds: “Under the proposed ownership of Otium I sincerely hope that the club’s future will be significantly brighter and I look forward to working with you going forward to help give the Sky Blues the success that the club deserves.”
The move could create uncertainty over contracts for staff, including players. It would effectively bring two existing Sky Blues companies into one – with a new name but the same people at the helm. It follows criticism that the club’s playing assets had been spread over two companies – Holdings, which retained assets including players’ contracts; and Coventry City Football Club Limited, into which went liabilities of up to £70million and which went into administration in March. Administrator Paul Appleton is proposing CCFC Ltd exits administration through a sale to Otium . He and the League have clarified the Football League’s crucial golden share for the right to play in the league was previously in CCFC Ltd.
It had prompted challenges to the League from Coventry City takeover hopefuls and Ricoh firm Arena Coventry Limited that the players’ contracts should have rested with same company which had the golden share. A sale of Holdings to Otium is part of Sisu/Otium’s attempts to win back the suspended golden share from the League – and unite the playing assets in line with Football League rules. The Football League is to scrutinise Sisu/Otium’s plans to move the Sky Blues out of the Ricoh and Coventry for up to three years while they build a new stadium in the Coventry area.
The League is also awaiting further developments from the administrator before eventually deciding whether or not to sanction Mr Appleton’s proposed sale of CCFC to Otium by awarding it the golden share. The leaked email/letter, dated June 21, states: “Coventry City Football Club (Holdings) Limited (CCH), which as you will know has for many year been running the club and in particular has been making all payments to its employees, is planning to sell its interest in the club. “The purpose of this letter is to let you know that it is accordingly intended that your contract of employment will transfer to Otium, which is the immediate parent company of CCH.
Tim Fisher says Coventry City are closing in on deal for new stadium site “In the case of playing staff registered with the Football league and the FA, it is proposed that the transfer of employment will follow approval by the Football League and the FA. “In all cases, your terms and conditions will be unchanged and this transfer will be seen as continuous for the purposes of employment legislation.’’ The email concludes by thanking staff for their “loyalty” over “particularly difficult” weeks, and adds: “Under the proposed ownership of Otium I sincerely hope that the club’s future will be significantly brighter and I look forward to working with you going forward to help give the Sky Blues the success that the club deserves.”