Coventry City Administration Confirmed
March 27, 2013
A High Court ruling yesterday has effectively confirmed that Coventry City Football Club is in administration.
If the Football Leagye accepts this ruling then the League One club face a 10 point penalty, which would almost certainly end their hopes of promotion.
Arena Coventry Ltd (ACL), the owners of the Ricoh Arena, brought an administration order against the club’s owners, Sisu Holdings. The Sky Blues are believed to owe ACL £1.3 million ($1.97m) in outstanding rent payments for use of the stadium.
Sisu placed a non-operating subsidiary of the club, Coventry City Football Club Ltd (CCFCL), into administration last week. This subsidiary owns the “Golden Share”, which guarantees membership of the Football League.
ACL yesterday asked for the withdrawal of the administration order after accepting the club effectively were in administration.
After the hearing, Coventry City CEO Tim Fisher said: “I acknowledge that ACL has now accepted that it must withdraw its administration application from the High Court notwithstanding the fact that this was an unwelcome and unnecessary distraction.
“I hope all parties will now focus on re-establishing a constructive dialogue for the good of the club and football in Coventry. We would like to ensure that Coventry City Football Club can, in the first instance, continue to play its remaining home matches this season at the Ricoh Arena.”
Paul Appleton, the joint administrator, added: “While CCFCL – which was the tenant under the terms of the lease and licence to occupy the Ricoh Arena – is in administration, Coventry City Football Club (Holdings) Ltd is not and will continue to run as normal under its existing management.”
During the hearing, it was also revealed the club is £60 million ($90.7m) in debt. Around £8.4 million ($12.7m) is believed to be owed to Arvo, a Cayman Island hedge fund, and rest to funds related to Sisu.