Coventry withdraws point appeal

Coventry City has decided to withdraw its appeal against a 10-point deduction by the Football League after a High Court ruling put the club into administration. This is the latest in an ongoing dispute over £1.3m in rent payments.

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Stadium owners claim Coventry City owe them £1.3m in unpaid rent

The owners of the Ricoh Arena, Arena Coventry Limited (ACL), claim Coventry City FC owe them £1.3m in unpaid rent.

A date at the High Court has now been set after ACL made an application for administrators to be brought into the club.

Chris West from ACL, told ITV News Central that it is about "trying to recover some of the money they're owed."

Coventry City's Chief Executive, Tim Fisher, said: "Unfortunately, this is one eventuality we have had to prepare for since ACL formally ended negotiations. We are consulting with our professional advisers in order to find the best way forward to try to minimise the damage to the club."

Court date announced over Coventry City administration application

The Ricoh Arena helped stage football matches during the Olympics Credit: ITV News Central

A date has been confirmed this morning by the High Court into the row between the Ricoh Arena and Coventry City Football Club over unpaid rent.

The court date will be March 22, with an administration decision expected 'by the end of the football season'.

Owners of the Ricoh, The Board of Arena Coventry Limited (ACL), announced yesterday that it has made an application to the High Court in London to request an administration order against Coventry City FC.

The application relates to the football club failing to pay £1.3m in rent.

Coventry City says it pays too much.

If the High Court rules that this is not the case, CCFC will be placed into administration.

Statement from Ricoh Arena owners

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."

“We are, of course, well aware that under the current Football League regulations, CCFC will face a points deduction and we will do everything we can to ensure that the case is heard by the High Court before the end of the current season.

"While this opens up the possibility of a ten point deduction this season, the Board believes this is better than leaving CCFC facing a much larger deduction at the start of next season.”

– Nicholas Carter, Chairman, Arena Coventry Limited

The decision to take this course of legal action follows the recent collapse of talks between ACL and Sisu in relation to rent arrears and future matchday revenue arrangements.

Coventry City owe Ricoh Arena owners £1.3m in rent

The application relates to Coventry City Football Club’s (CCFC) failure to pay Arena Coventry Limited (ACL), who own the Ricoh Arena, £1.3m in rent that ACL is lawfully owed for CCFC's use of the Ricoh Arena.

The application to the High Court now means that:

  • At a date in the next few weeks, the High Court will consider CCFC's financial position, and whether it is fit to continue trading. If the High Court rules that this is not the case, CCFC will be placed into administration.
  • If_ the High Court determines that CCFC should be placed into administration, the High Court will then appoint an administrator to sell CCFC to a buyer that is able to restore financial stability to the Club.
  • It will provide for an interim period, pending the outcome of the hearing, during which other parties (including CCFC owner, Sisu) will be unable to wind-up or liquidate CCFC.

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