Secret talks to keep Sky Blues in Coventry fail

The club's immediate future could be decided by the Ricoh Arena. Credit: Jon Buckle/EMPICS Sport

ITV News Central has been told that secret talks between Coventry City and the Ricoh Arena to try to keep the club in the city have failed.

The two sides met yesterday.

It is understood that the talks centred around a debt deal being offered to the stadium.

If Ricoh Arena bosses accept the offer, it would mean the following:

  • The Ricoh Arena gets paid some of what it is owed (approximately £600,000 out of £1.3m)

  • Coventry take a significant step towards coming out of administration, which they need to do to start buying players again

  • Coventry avoid a points deduction from the Football League

  • Coventry's finances are not inspected in more detail

If the deal is rejected, the opposite happens:

  • The Ricoh Arena does not get paid any of what it is owed

  • Coventry will spend longer in administration, unable to buy players

  • Coventry are deducted points by the Football League

  • Coventry's finances are inspected in more detail

The two sides will meet again formally to discuss the debt deal, on July 30, at 11am.

In the meantime, the Sky Blues have said today they are pressing ahead with plans to build a new stadium within six-miles of Coventry city-centre.