Sky Blue Kid
Well-Known Member
The council has yet to receive any dividend from its 50 per cent share. Any profits would first be used to pay back a £21million ACL loan to Yorkshire Bank. The loan was originally taken out by the council to rescue the Ricoh project in 2003 and ensure the stadium was built on the contaminated former Foleshill gasworks site.
Development of the “leisure land” – including more hotels to support the stadium’s hotel and conferences, and events including concerts – is seen as crucial in raising Ricoh revenue. The council also wants the development to create jobs in return for taxpayer investment in the disadvantaged north-east of Coventry.
The 2003 deal gave the council and football club 50 per cent each of ACL shares. But the Sky Blues sold its half-stake to the Higgs charity in 2007 for a reported £6million, to stave off a threat of administration.
A complicated formula giving the football club an option to buy back the shares has long been rumoured to price Higg’s charity’s 50 per cent at £10million.
The Higgs charity’s Peter Knatchbull-Hugessen told the Telegraph in June Sisu’s initial rejected offer had been outside the formula.
News of the headline agreement comes days after Daniel Gidney resigned as ACL chief executive, and was understood to be increasingly disillusioned over the prospect of a deal with Sisu over stadium ownership.
Coun Mutton said the council still had a “not for sale” policy on its 50 per cent share.
But he added, if “a fantastic offer came in” for the council’s shares, the full council could vote on a change of policy.
Tim Fisher, Sky Blues chief executive, said: “We have made an undertaking not to discuss this matter publically. It is a highly-sensitive commercial negotiation which all sides have undertaken to conclude before speaking to other parties. On the issue of financial debt and creditor profile of the football club, I am more than happy to go through the appropriate details with Coun Mutton in person and in private.”
Development of the “leisure land” – including more hotels to support the stadium’s hotel and conferences, and events including concerts – is seen as crucial in raising Ricoh revenue. The council also wants the development to create jobs in return for taxpayer investment in the disadvantaged north-east of Coventry.
The 2003 deal gave the council and football club 50 per cent each of ACL shares. But the Sky Blues sold its half-stake to the Higgs charity in 2007 for a reported £6million, to stave off a threat of administration.
A complicated formula giving the football club an option to buy back the shares has long been rumoured to price Higg’s charity’s 50 per cent at £10million.
The Higgs charity’s Peter Knatchbull-Hugessen told the Telegraph in June Sisu’s initial rejected offer had been outside the formula.
News of the headline agreement comes days after Daniel Gidney resigned as ACL chief executive, and was understood to be increasingly disillusioned over the prospect of a deal with Sisu over stadium ownership.
Coun Mutton said the council still had a “not for sale” policy on its 50 per cent share.
But he added, if “a fantastic offer came in” for the council’s shares, the full council could vote on a change of policy.
Tim Fisher, Sky Blues chief executive, said: “We have made an undertaking not to discuss this matter publically. It is a highly-sensitive commercial negotiation which all sides have undertaken to conclude before speaking to other parties. On the issue of financial debt and creditor profile of the football club, I am more than happy to go through the appropriate details with Coun Mutton in person and in private.”
The only mention of £6m is when CCFC SOLD their shares to ACL.