Flying Fokker
Well-Known Member
http://www.coventrytelegraph.net/news/coventry-news/2013/03/16/sky-blues-could-face-15-point-deduction-if-sisu-fights-takeover-bid-92746-32999499/
COVENTRY City could start next season with a 15-point deduction if owners Sisu are forced out.
That is the verdict of top football finance expert Brendan Guilfoyle after Ricoh Arena operating company Arena Coventry Ltd (ACL) applied to put the club into administration over its unpaid rent bill, totalling more than £1million.
If this application is successful at the High Court on Friday the Sky Blues could face a 10-point deduction this season, while the door will be left open for a possible takeover.
Mr Guilfoyle is a leading football finance expert and insolvency practitioner who has acted as the administrator for clubs including Crystal Palace, Luton and Plymouth Argyle.
He says faced with being forced from the club, Sisu could leave the team with a second points deduction at the start of next season by refusing all offers from other potential buyers once the club is in administration.
“It wouldn’t scupper a sale but it might mean the club starts next season on minus15 points,” Mr Guilfoyle explained.
“For this to happen Sisu would have to vote against any sale – and they probably would – but if they block a sale it could still go through in special circumstances.”
It comes as both ACL and Sisu prepare for the bitter legal battle amid mounting takeover speculation.
ACL – jointly owned by Coventry City Council and the Alan Higgs charity – say they have applied to put the club into administration following suggestions by the club’s owners the club could be wound up.
The application centres on £1.3million in rent arrears owed to ACL and follows the bitter breakdown of negotiations with the club about lowering the Ricoh rent.
Sisu, a Mayfair-based hedge fund, has ploughed more than £40million into running Coventry City – much of which is believed to be technically owed back to it in the form of debt.
Mr Guilfoyle says as the club’s biggest creditor, Sisu could refuse to agree to any takeover, resulting in a second Football League points penalty next season after they have been forced out.
The Telegraph asked Coventry City for the current total Sisu has spent on the club since taking charge and how much the club still owes Sisu in the form of debt.
The club declined to answer these questions, but released a statement from chief executive Tim Fisher which said: “We have not applied for a court application which could send the club into administration.
“That has been done to us.
“There is no benefit to the football club, its supporters or any other party to discuss financial and commercial details through the media. Why would we do that when we are at such a delicate stage in proceedings?
“We are doing everything we can to work through this while at the same time running a football club that is doing very well on the field and in touching distance of the play-off places.”
COVENTRY City could start next season with a 15-point deduction if owners Sisu are forced out.
That is the verdict of top football finance expert Brendan Guilfoyle after Ricoh Arena operating company Arena Coventry Ltd (ACL) applied to put the club into administration over its unpaid rent bill, totalling more than £1million.
If this application is successful at the High Court on Friday the Sky Blues could face a 10-point deduction this season, while the door will be left open for a possible takeover.
Mr Guilfoyle is a leading football finance expert and insolvency practitioner who has acted as the administrator for clubs including Crystal Palace, Luton and Plymouth Argyle.
He says faced with being forced from the club, Sisu could leave the team with a second points deduction at the start of next season by refusing all offers from other potential buyers once the club is in administration.
“It wouldn’t scupper a sale but it might mean the club starts next season on minus15 points,” Mr Guilfoyle explained.
“For this to happen Sisu would have to vote against any sale – and they probably would – but if they block a sale it could still go through in special circumstances.”
It comes as both ACL and Sisu prepare for the bitter legal battle amid mounting takeover speculation.
ACL – jointly owned by Coventry City Council and the Alan Higgs charity – say they have applied to put the club into administration following suggestions by the club’s owners the club could be wound up.
The application centres on £1.3million in rent arrears owed to ACL and follows the bitter breakdown of negotiations with the club about lowering the Ricoh rent.
Sisu, a Mayfair-based hedge fund, has ploughed more than £40million into running Coventry City – much of which is believed to be technically owed back to it in the form of debt.
Mr Guilfoyle says as the club’s biggest creditor, Sisu could refuse to agree to any takeover, resulting in a second Football League points penalty next season after they have been forced out.
The Telegraph asked Coventry City for the current total Sisu has spent on the club since taking charge and how much the club still owes Sisu in the form of debt.
The club declined to answer these questions, but released a statement from chief executive Tim Fisher which said: “We have not applied for a court application which could send the club into administration.
“That has been done to us.
“There is no benefit to the football club, its supporters or any other party to discuss financial and commercial details through the media. Why would we do that when we are at such a delicate stage in proceedings?
“We are doing everything we can to work through this while at the same time running a football club that is doing very well on the field and in touching distance of the play-off places.”
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