The Guardian Coventry City Face Homeless future after Sisu's litigious aggression (10 Viewers)
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ohitsaidwalker king power
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Coventry City face homeless future after Sisu’s litigious aggression
The hedge fund owner Sisu has alienated city council and Wasps with failed court challenges and there is no agreement in place for the League One club to play anywhere next season
The Ricoh Stadium in Coventry, built for the city’s football club but at present the home ground of Wasps rugby union club. Photograph: Shaun Botterill/Getty Images
Perhaps there are two ways to view the plight of proud, 135-year-old Coventry City football club after the latest thumping court defeat in a losing series for the club’s calamitous owner, the hedge fund Sisu.
One view, presumably still nursed by Sisu, is that it has somehow been grievously wronged by Coventry City Council, which built the £113m Ricoh Arena for its football club and always envisaged the Sky Blues thriving there as a motor for wider regeneration. The other view, held by exasperated supporters’ groups, the council and Wasps, the rugby club which now occupies the Ricoh instead of City, is that Sisu needs finally to stop taking the council to court and face reality.
Since taking City over 11 years ago in the Championship, the hedge fund has spent millions, suffered relegation to League Two before bouncing up one division, lost its tenancy of the arena after moving out to share Northampton Town’s ground and tried to financially ruin the Ricoh’s operating company, which was owned by the council and a charity.
The club’s Sisu-appointed chief executive, Tim Fisher, famously told supporters in 2013 that “Sisu is a distressed debt fund and therefore batters people in court”. But Sisu has lost a trail of cases it has brought to protest against the council’s stewardship and now, in the Court of Appeal, a challenge to the council’s ultimate sale of its half of the Ricoh operating company, and an extended tenancy, to Wasps in 2014.
Under Sisu’s ownership Coventry City face homelessness in May, when its single year’s sub-lease to Wasps ends, with no agreement in place to play anywhere next season. The hedge fund’s propensity for litigation is itself a barrier to agreeing a new deal to stay at the Ricoh, as Wasps said understandably in February when announcing this season’s agreement .
“It is widely known that there are obstacles – in the form of the current legal proceedings – which stand in the way of a longer-term agreement,” the rugby club stated. “Unless those obstacles have been overcome by the time … discussions for the 2019-20 season would normally commence, then, regrettably, we will not be in a position to enter such discussions.”
Coventry’s decline and loss of the Ricoh tenancy is one of modern football’s most sorry and maddening sagas. The city council built the 32,000-seat stadium specially for the football club to play in and agreed a deal whereby the club and council would share 50-50 in the stadium’s running and revenues. In 2001 the club was relegated to the Championship after an admirable – now marvellous-looking – 34 years in the top flight. The financial difficulties which followed led the then-owners to sell their 50% share in the stadium operating company to a local trust which had a long association with the club, the Alan Edward Higgs Charity.
It was always envisaged that, when the club was financially able, it would buy that half-share back, and it had a contractual option to do so, for a minimum £6.5m, as long as it had the council’s consent.
Sisu bought the club in December 2007 then lost around £36m, mostly on signing players to try to win the Premier League promotion bonanza. Mr Justice Hickinbottom, who found against Sisu companies in 2014 in a lawsuit the hedge fund brought against the council and the Higgs charity, stated that by 2012 City “had fallen into a parlous state as a result of mismanagement”.
Sisu turned then to seeking the 50% ownership of the stadium operating company, which it had an option to buy. But in April 2012 the hedge fund began to withhold paying any of the rent legally due at the arena. Hickinbottom was clear in his judgment that this “rent strike” deliberately “distressed the financial position” of the operating company, which reduced its value, and that Sisu’s strategy “was dependent on buying into the Arena cheaply”.
While still refusing to pay the rent, Sisu offered the Higgs charity around £2m for its half share in the stadium operating company. The charity refused to sell, because the offer was too low, while the council would not give its consent partly because it had lost trust in Sisu and for other reasons. That was the point at which Sisu could have restored the club to the Ricoh Arena as originally envisaged, but instead in 2013 they took Coventry City off to Northampton’s Sixfields stadium, leaving the arena completely empty and under continuing financial pressure.
Sisu seemed always to believe that the council and charity had no other options for an occupant of the arena and would have to cave in eventually. But Wasps, a Premiership club without a ground, buzzed in and a deal was done with them. The rugby club paid £2.77m each to the council and the Higgs charity, plus £14m to clear the council’s loan to the operating company. While the football club has struggled in the lower divisions to win back supporters after Sisu brought it back in 2014 from the widely boycotted and reviled stint as Northampton’s tenants, Wasps have regularly filled the Ricoh and invested the place with an atmosphere of warmth and cheer.
Coventry City fans express their feelings. Photograph: ProSports/REX/Shutterstock
Sisu’s latest lawsuit was a challenge to the legality of the council selling its half of the arena operating company and extending the lease to Wasps. Like the other cases Sisu has brought it failed while the council was again found to have followed procedures properly, including commissioning advice and an independent valuation from KPMG. A happy and fruitful occupation of the Ricoh could and should have been the football club’s but instead it is staring at just months left on the one-year sub-lease, and Sisu has continued with its self-defeating, expensive court defeats.
After the latest one the club itself said it is seeking an extension with Wasps – who insist litigation must end first – while, according to the council, Sisu sought leave to appeal against the Court of Appeal’s ruling and carry on. The judges refused this but Sisu may apply to the Supreme Court directly.
George Duggins, leader of Coventry city council, said Sisu’s court actions had resulted in “the burning of bridges with partners that you need to work with” and called on them to stop. The supporters’ Sky Blue Trust did the same and also called on Sisu to sell, delivering this verdict on the litigious hedge fund which fatefully bought Coventry City 11 years ago: “They have created toxic relationships with everyone involved,” the trust said in its statement. “And all confidence in them was lost, forever, some years ago.”
The hedge fund owner Sisu has alienated city council and Wasps with failed court challenges and there is no agreement in place for the League One club to play anywhere next season
The Ricoh Stadium in Coventry, built for the city’s football club but at present the home ground of Wasps rugby union club. Photograph: Shaun Botterill/Getty Images
Perhaps there are two ways to view the plight of proud, 135-year-old Coventry City football club after the latest thumping court defeat in a losing series for the club’s calamitous owner, the hedge fund Sisu.
One view, presumably still nursed by Sisu, is that it has somehow been grievously wronged by Coventry City Council, which built the £113m Ricoh Arena for its football club and always envisaged the Sky Blues thriving there as a motor for wider regeneration. The other view, held by exasperated supporters’ groups, the council and Wasps, the rugby club which now occupies the Ricoh instead of City, is that Sisu needs finally to stop taking the council to court and face reality.
Since taking City over 11 years ago in the Championship, the hedge fund has spent millions, suffered relegation to League Two before bouncing up one division, lost its tenancy of the arena after moving out to share Northampton Town’s ground and tried to financially ruin the Ricoh’s operating company, which was owned by the council and a charity.
The club’s Sisu-appointed chief executive, Tim Fisher, famously told supporters in 2013 that “Sisu is a distressed debt fund and therefore batters people in court”. But Sisu has lost a trail of cases it has brought to protest against the council’s stewardship and now, in the Court of Appeal, a challenge to the council’s ultimate sale of its half of the Ricoh operating company, and an extended tenancy, to Wasps in 2014.
Under Sisu’s ownership Coventry City face homelessness in May, when its single year’s sub-lease to Wasps ends, with no agreement in place to play anywhere next season. The hedge fund’s propensity for litigation is itself a barrier to agreeing a new deal to stay at the Ricoh, as Wasps said understandably in February when announcing this season’s agreement .
“It is widely known that there are obstacles – in the form of the current legal proceedings – which stand in the way of a longer-term agreement,” the rugby club stated. “Unless those obstacles have been overcome by the time … discussions for the 2019-20 season would normally commence, then, regrettably, we will not be in a position to enter such discussions.”
Coventry’s decline and loss of the Ricoh tenancy is one of modern football’s most sorry and maddening sagas. The city council built the 32,000-seat stadium specially for the football club to play in and agreed a deal whereby the club and council would share 50-50 in the stadium’s running and revenues. In 2001 the club was relegated to the Championship after an admirable – now marvellous-looking – 34 years in the top flight. The financial difficulties which followed led the then-owners to sell their 50% share in the stadium operating company to a local trust which had a long association with the club, the Alan Edward Higgs Charity.
It was always envisaged that, when the club was financially able, it would buy that half-share back, and it had a contractual option to do so, for a minimum £6.5m, as long as it had the council’s consent.
Sisu bought the club in December 2007 then lost around £36m, mostly on signing players to try to win the Premier League promotion bonanza. Mr Justice Hickinbottom, who found against Sisu companies in 2014 in a lawsuit the hedge fund brought against the council and the Higgs charity, stated that by 2012 City “had fallen into a parlous state as a result of mismanagement”.
Sisu turned then to seeking the 50% ownership of the stadium operating company, which it had an option to buy. But in April 2012 the hedge fund began to withhold paying any of the rent legally due at the arena. Hickinbottom was clear in his judgment that this “rent strike” deliberately “distressed the financial position” of the operating company, which reduced its value, and that Sisu’s strategy “was dependent on buying into the Arena cheaply”.
While still refusing to pay the rent, Sisu offered the Higgs charity around £2m for its half share in the stadium operating company. The charity refused to sell, because the offer was too low, while the council would not give its consent partly because it had lost trust in Sisu and for other reasons. That was the point at which Sisu could have restored the club to the Ricoh Arena as originally envisaged, but instead in 2013 they took Coventry City off to Northampton’s Sixfields stadium, leaving the arena completely empty and under continuing financial pressure.
Sisu seemed always to believe that the council and charity had no other options for an occupant of the arena and would have to cave in eventually. But Wasps, a Premiership club without a ground, buzzed in and a deal was done with them. The rugby club paid £2.77m each to the council and the Higgs charity, plus £14m to clear the council’s loan to the operating company. While the football club has struggled in the lower divisions to win back supporters after Sisu brought it back in 2014 from the widely boycotted and reviled stint as Northampton’s tenants, Wasps have regularly filled the Ricoh and invested the place with an atmosphere of warmth and cheer.
Coventry City fans express their feelings. Photograph: ProSports/REX/Shutterstock
Sisu’s latest lawsuit was a challenge to the legality of the council selling its half of the arena operating company and extending the lease to Wasps. Like the other cases Sisu has brought it failed while the council was again found to have followed procedures properly, including commissioning advice and an independent valuation from KPMG. A happy and fruitful occupation of the Ricoh could and should have been the football club’s but instead it is staring at just months left on the one-year sub-lease, and Sisu has continued with its self-defeating, expensive court defeats.
After the latest one the club itself said it is seeking an extension with Wasps – who insist litigation must end first – while, according to the council, Sisu sought leave to appeal against the Court of Appeal’s ruling and carry on. The judges refused this but Sisu may apply to the Supreme Court directly.
George Duggins, leader of Coventry city council, said Sisu’s court actions had resulted in “the burning of bridges with partners that you need to work with” and called on them to stop. The supporters’ Sky Blue Trust did the same and also called on Sisu to sell, delivering this verdict on the litigious hedge fund which fatefully bought Coventry City 11 years ago: “They have created toxic relationships with everyone involved,” the trust said in its statement. “And all confidence in them was lost, forever, some years ago.”
IrishSkyBlue
Facebook User
Ball is in sisu court now gonna be interesting what they come out with over the next few months about a home for us next season.
COVKIDSNEVERQUIT
Well-Known Member
This could run until the end of the season and then we still might not know.
The announcement for the early bird season tickets will be interesting.
I'm not renewing I'm season ticket until I know where we are playing next season.
Who get the larger attendances ccfc or Wasps ?
Think the PR games are cranking up early this time.
Nick
Administrator
No surprise the Trust and people like cj constantly drool about him. "One of us" type bullshit, same as supporters direct.
Nick
Administrator
Do wasps fill it then? Sorry if somebody pointed out just how the article may as well be a copy and paste from wasps, the trust and others.
Exactly as I said, pr games starting early.
letsallsingtogether
Well-Known Member
Ha just as expected, just the sort of reply we have come to expect from you.
Come out fighting when anyone has a go at your beloved Sisu.
letsallsingtogether
Well-Known Member
More shit
Nick
Administrator
Hardly beloved are they? How's that article having a go at anybody apart from climbing up wasps arse?
It's hardly fighting to point out its nothing more than a part of a pr game. Just the same as the trust are.
Nick
Administrator
How is it?
Point out how I'm wrong.
All we need now is Jimmy hill way and others to pipe up. Get the bed sheets out, roll Hoffman out.
It's all pretty predictable.
Crucially, who has the more paying attendees?
weecohawena
Well-Known Member
Conn would love a fan ownership type of scenario and pretends its the fans he cares about. Obviously couldn't give a shit about London Wasps or Cov rugby fans.
So one sided and ill researched its untrue.
So one sided and ill researched its untrue.
Captain Dart
Well-Known Member
Well that is the German model, is that so wrong?
stupot07
Well-Known Member
Its fine if its a whole system approach and its a level playing field. Looks like the Germans want to get rid of the 50+1 rule because of lack of foreign investment.
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letsallsingtogether
Well-Known Member
Like I said predictable.
Have a go at anyone who is against Sisu.
Crawl back up tims arse.
No wonder he looks ill. ..............
Talking of PR what is the update from Joy?
Nick
Administrator
Never met the bloke to get near it and don't intend to. Next one?
Not going to point out how what I said is so wrong?
letsallsingtogether
Well-Known Member
How many times Nick.
Like I said a minute ago you always attack anyone who has a go at Sisu. knew what your reply would be.
Fuck me never mind GOAL
Nick
Administrator
oucho
Well-Known Member
I didn't say it was wrong or right.
lapsed_skyblue
Well-Known Member
I’m sorry but I fail to see why some are criticising this article.
Let’s compare and contrast the Wasps approach with SISU.
Wasps saw that there was a deal to be done, sat down with the council, agreed a price and honoured their part of the bargain. Yes, their attendances may not be stellar but I suspect that it is overall better than their previous “home”.
SISU have been continually sniping at other parties, pulled out of agreements that other parties thought resolved and suing just about everyone. Their statements about building a new stadium have been vacuous with no evidence that anything has been done apart from an artist’s impression reworked from a different project.
Love or hate them, Wasps objective seems to be to build a business with rugby at its centre.
It seems to me that all SISU are interested in is recouping as much of their money as they can and committing no more in the meantime. If they do manage that they won’t be looking in the rear view mirror at what little they have left behind.
Personally I don’t like rugby or some aspects of Wasps decampment from London.
However, if SISU had taken the same business approach as Wasps we would be cheering them on.
Let’s compare and contrast the Wasps approach with SISU.
Wasps saw that there was a deal to be done, sat down with the council, agreed a price and honoured their part of the bargain. Yes, their attendances may not be stellar but I suspect that it is overall better than their previous “home”.
SISU have been continually sniping at other parties, pulled out of agreements that other parties thought resolved and suing just about everyone. Their statements about building a new stadium have been vacuous with no evidence that anything has been done apart from an artist’s impression reworked from a different project.
Love or hate them, Wasps objective seems to be to build a business with rugby at its centre.
It seems to me that all SISU are interested in is recouping as much of their money as they can and committing no more in the meantime. If they do manage that they won’t be looking in the rear view mirror at what little they have left behind.
Personally I don’t like rugby or some aspects of Wasps decampment from London.
However, if SISU had taken the same business approach as Wasps we would be cheering them on.
Nick
Administrator
Moved us 80 miles? Would we be cheering?
Sick Boy
Super Moderator
Yeah, one moved a club away from its home on a permanent basis. Would it acceptable for SISU to do the same then?
lapsed_skyblue
Well-Known Member
I seem to have been reduced to defending Wasps, something I’m not comfortable with.
My reference to a business approach was around the theme of sitting down, doing a deal and honouring it. There are a few times when it looked liked SISU could do a deal but were unwilling to complete.
Wasps moved themselves from a venue that appeared to be unviable for the future they wanted. Hard hearted and morally questionable I would agree.
SISU temporarily moved CCFC to another venue where attendances were available in attempt to destabilise ACL. The reason for their return was that attendances were much lower than their calculations and their assumption that only they were interested in the Ricoh proved incorrect.
Would SISU move us again if they thought they could achieve their exit objectives? I think they would.
rondog1973
Well-Known Member
What former director?
Nick
Administrator
Somebody defending Wasps who's last post about a CCFC game was in 2016? I don't believe you.
If SISU move and get a decent stadium deal 80 miles away, you will back it surely?
lapsed_skyblue
Well-Known Member
I thought that the identity I use would give you a bit of a clue. Born in Coventry, I was a season ticket holder for quite a few years but I stopped live in Coventry in 1979 and I’m not coming back. I rarely comment on football matches, I don’t have the right. Unfortunately, I don’t believe that you can change club allegiances no matter how tenuous your connection might be.
Nick
Administrator
Just coming back on to defend Wasps then? Nice one, a proper "lapsed" Sky Blue.
Good game going on Match Thread - Bradford City vs. Coventry City Match Thread - Tuesday 23rd Oct
David O'Day
Well-Known Member
the wasps sock puppets are back i see
lapsed_skyblue
Well-Known Member
An entirely predictable response. After all, I was critical of SISU and am not just blindly choosing to condemn Wasps.
Nick
Administrator
Sorry, I was reminding you we are winning a game 4-1 which you don't seem bothered by. Another one.
Edit: 4-2 now.
My point is people like you who crawl out of the woodwork every so often when there is a need and then vanish again.