Telegraph on ACL bid for sky blues

Discussion in 'Coventry City General Chat' started by Sub, Jun 12, 2013.

  1. Sub

    Sub Well-Known Member

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    won't say where cash would come from for ACL to buy Sky Blues

    'The administration process is complex and the bidding element is subject to complete confidentiality,' says statement



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    Coventry City and the Ricoh Arena
    COVENTRY City Council is refusing to say where the cash would come from for ACL’s bid to buy the indebted Sky Blues.
    The Telegraph exclusively revealed yesterday the part council owned Arena Coventry Limited, which runs the Ricoh Arena, had swooped in with a bid to buy Coventry City Football Club Limited out of administration.
    The move is controversial, given the potential for taxpayer involvement in the club, which has up to £70million debts.
    Council Conservative opposition leader John Blundell said he was “shocked” to learn of the move in the Telegraph – and said his group had no prior briefing from council officers or Labour leaders.
    ACL is one of what are believed to be six provisional “indicative bidders” to buy CCFC Limited. The bidders have until tomorrow to make “best and final” offers to administrator Paul Appleton.
    Bidders also include Sisu-owned Coventry City Football Club (Holdings) Ltd, which put the Limited company in administration and says the club owes it and related companies at least £45million.
    ACL would first have to buy any assets in Limited, and then offer a multi-million pound price to Holdings/Sisu, if it wants to obtain the club as a whole.
    ACL’s profits last year were only £1million, and it has been affected by lost football related income, including Sisu’s refusal to pay rent.
    Coventry City Council agreed a £14million bailout of ACL in January when it bought out the firm’s mortgage in a secret cross-party deal.


    The Telegraph asked the council and ACL – jointly owned by the council and Alan Edward Higgs Charity – how much there were prepared to bid for CCFC Ltd.
    We also asked where the money would come from, whether they would look to sell the club on to a private partner, and whether any politician sanctioned the decision to bid.
    We also asked whether the council or ACL would have to borrow more money, or whether it could come directly from council coffers.

    The council refused to be drawn on the questions, saying only: “The administration process is complex and the bidding element is subject to complete confidentiality.”
    It also added the ACL offer to allow the club to play next season on a cost-only basis – if it is still in administration – was to “keep CCFC in Coventry”.
    A statement from new Labour council leader Ann Lucas said: “I’m delighted that ACL’s offer today gives us the opportunity to see our team play in its home at the Ricoh Arena next season.”

    Council chief executive Martin Reeves and finance director Chris West are also ACL board members.
    Sisu and Holdings are already seeking a High Court judicial review over the £14million bailout - claiming the council had contravened “state aid” laws in seeking to wrest control of the club, and by creating unfair competition in buying out ACL’s Yorkshire Bank mortgage.
    The council insists it has acted properly.
     
  2. Astute

    Astute Well-Known Member

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    Can we all try thinking outside the box for once?

    Admin shouldn't be looking at the highest bidder but who can take our club forward. Where will we play? How much will it cost? Can it be afforded?

    To get out of admin the debts will be sorted in some way. Normally paid off at a much lower rate than is owed. SISU got us on the cheap. They got us to make money. This has backfired, mainly because they knew nothing about football. They say the club owes them 45m. They say we lost maximum 500k a month. So in approx 66 months of them being in charge the worse we could have done is 33m. It will be much lower than this.

    ACL have put an offer in. There is already a mortgage of 14m on the Ricoh it is said. They could put an offer in to get rid of SISU of 50% of the maximum we could have lost in their time with us of 16m. This would leave a mortgage of 30m on the Ricoh. They should be able to get a mortgage at 3%. 3% of 30m is £900,000 pa rounded off. So we could afford to pay 1m a year. Would the fans come back? 1 near sellout a year, lets say a cup game, would be 30,000x£25. This would be £750,000.

    Anyone putting in a bid will have to show where we will play and the cost of it. They will also have to show how they will take the club forward. To me with ACL having the rights of the ground any bid to be better than theirs will mean a lot of money being put in from day 1. Who in their right mind would do this? The ACL bid would be my favoured bid without knowing the facts of any others. They could also offer enough to get rid of SISU without putting our future in any more trouble than it is already in. I just hope that all the ACL protesters give them a chance to see what they can do before calling their bid bollox. It would give our club their own ground to play in. This is very important. We could then move forward.

    Has a charity ever been in charge of a football club before? :confused:
     
  3. oldskyblue58

    oldskyblue58 CCFC Finance Director

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    Not sure what Les Reid is getting his knickers in a twist over.

    To get through the first stage where indicative bids are required you could probably have bid £1000 and PA would be obliged to put you forward to the next stage. £1000 isnt going to cause a crisis at ACL or Council.

    ACL have not said they have put a final bid in for this Thursdays deadline...... but of course putting an indicative bid in keeps them in the process which gives them knowledge

    That aside ACL can not (and therefore the council cannot) give out any details of their indicative bid because they have signed a Non Disclosure Agreement with Mr Appleton............ a requirement of the process to be given the details PA has. It isnt that they wont answer the questions the CT put it is that contractually they can not.

    That all only changes if ACL put in a final bid that is successful. I do not think that a successful bid is likely from ACL

    Not sure what the scandal is to be honest, But hey it makes a good headline doesnt it

    TF must be pleased the spotlight is off him again

    Question though ........... if all bids are subject to non disclosure how come Stuart Linnell and Les Reid got to hear about the ACL one if ACL didnt announce it themselves? :thinking about:
     
    Last edited: Jun 12, 2013
  4. rupert_bear

    rupert_bear Well-Known Member

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    ACL haven't come up with this on a whim, they will have sat down over time with experts, might be a tactic, might be genuine but it has certainly put sisu and i suspect the administrator on the back foot. Appleton has soon to decide who is the prefered bidder who can take this business forward. ACL have a ground, free, sisu haven't, haven't got detailed plans of building a new one just talk of one, they haven't even bought any land yet, got planning permission, which ibelieve has to go to the government aswell as any council. Any plans has to be put to the FL and has to be concrete to pass their fit and proper test and get this Golden Share.
     
  5. Jack Griffin

    Jack Griffin Active Member

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    Les Reid tweeted about it on 10th July.. so he knew then.. must have been briefed by ACL.

     
  6. NorthernWisdom

    NorthernWisdom Well-Known Member

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    Yeah nothing stopping me bidding for the club, but you'd be asking questions of the administrator if he accepted any offer I put together.

    While I get the desire for knowledge doesn't a bid with no real intent to buy also waste time, and thus cost the club money in fees to the Administrator? If they already have a relationship with Haskell and Elliott they'd have access to information given out during the bidding process anyway?
     
  7. wingy

    wingy Well-Known Member

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    Possibly to sideline the Byng Bid.
     
  8. wingy

    wingy Well-Known Member

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    Or reinforce the Haskel bid ,as he has nothing signed with them as such.
     
  9. ccfcway

    ccfcway Well-Known Member

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    Why is Carl Baker holding a large pic of the Ricoh ?
     
  10. simple_simon

    simple_simon New Member

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    Its a well known fact that Les Reid does not get on with ACL.
     
  11. Sub

    Sub Well-Known Member

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    showing fisher where him and the rest of the team want to play there home games !!
     
  12. chiefdave

    chiefdave Well-Known Member

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    I would assume he's questioning where the money is going to come from to fund a business that is, so we are told, losing millions every year.

    That raises an interesting point, can CCFC be a self sustaining entity? Lets just suppose that by some miricle the debt is wiped and we own Higgs 50% of ACL (as I don't think the council will sell their half). Even then would we be in a position to break even and be competitive. I suspect we could in L1 but what about if we got back to the Championship?
     

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