Coventry City Face Administration after Stadium Owners Go to Court
By iSportconnect | March 14, 2013
League One football team Coventry City are facing administration after the owners of the Ricoh Arena went to court, claiming the club owed them £1.3m.
Arena Coventry Limited (ACL) went to the High Court in London looking for the club to be issued with an administration order over unpaid rent.
The date for the High Court hearing is 22 March, although the Sisu consortium who owns the club, dispute the terms of the lease.
ACL chairman Nicholas Carter said: “It is highly unfortunate that we have had to take this course of legal action. Had we not taken this action, then the alternative might have been catastrophic for CCFC.
“We are owed a considerable amount of money in rent arrears. While it is imperative that ACL takes action to recover these arrears and to stop the arrears growing, it is important for us to find a solution that can provide for the survival of the Sky Blues.
“Hopefully this action will ultimately put CCFC on a stable financial footing for the future.”
Coventry chief executive Tim Fisher responded: “We are consulting with our professional advisers in order to find the best way forward to try to minimise the damage to the club and we will be keeping supporters informed of any developments.
“In terms of the day to day affairs, it is business as usual as we have to make sure we are all fully focused on Saturday’s important game against Hartlepool United.”