Sounds like conflict of interest - Ricoh Arena contract (1 Viewer)

[skyblue2k]

Been wondering about this for weeks and starting to think what is holding up any agreement is CCFC are looking into the possible conflict of interest, I am sure i remember reading the original Ricoh rent contract was signed by 2 directors who were representing ACL and CCFC at the same time and on both boards?

Does anyone know any more about this? could this result in the lease agreement being null and void?

If this is the case, could explain what is happening

 

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[Bluegloucester]

If the 2 directors signing the rental agreement were directors of both entities I do not see what the problem is. It happens regularly in business, the directors have different personalities as regards each entity.
They wear the ACL hat when signing for ACL and act in the best interest of that company and ditto when they sign for CCFC.

 

[skyblue2k]

A friend mentioned that it was brought up in yesterdays commons debate and in today's telegraph, that it was said that CCFC are querying the original contract?

ie 49 year lease and rent at £1,200,000 per year, with no break points or anything to tie in with reduction in rent if incomings / league position decreases. This second line is my thoughts from what i have read

 

[Bluegloucester]

I think and have the feeling that this is what CCFC is saying is not the case.

ie 49 year lease and rent at £1,200,000 per year, with know break points or anything to tie in with reduction in rent if incomings / league position decreases.

A friend mentioned that it was mentioned in yesterdays commons debate and in today's telegraph?

While not being a party to the original negotiations between ACL and CCFC, it would appear that CCFC were pretty naive in not including break clauses and rent reductions for demotion. Their legal advisors should have pointed this out.
ACL had a duty to get the best possible deal for itself and was under no duty to offer CCFC concessions.
SISU had the opportunity to flag this when they carried out due diligence prior to completing the purchase of CCFC, they chose not to.
Both parties would have discussed the matter at board level and a record of the meeting should be available.

 

[Flying Fokker]

I think and have the feeling that this is what CCFC is saying is not the case.

ie 49 year lease and rent at £1,200,000 per year, with know break points or anything to tie in with reduction in rent if incomings / league position decreases.

A friend mentioned that it was mentioned in yesterdays commons debate and in today's telegraph?

the link is on the debate thread..Cant remember that being said.

 

[skyblue2k]

The bit you highlighted was my thoughts, have corrected my post.

But the piece in the telegraph from Bob Ainsworth i believe mentioned the original contract was being questioned by CCFC