Statement in council today
Pretty thorough and makes many fair points. No chance of us playing in Coventry next year
Lord Mayor I think everybody in this Chamber would agree with me that we want Coventry City Football Club to remain in Coventry and play at the Ricoh.
It is unthinkable that the football club will be playing outside of the City for the second time in 6 years. If that enormously unfortunate situation comes to pass then it will be the owners of the football club and they alone who will have created and delivered on that situation.
Last week Sisu Capital Ltd sent out an open letter. I am not going to deal with all of the aspects in that letter other than to say many of the issues have been tested in Court, dealt with by Council documentation, publications by including Simon Gilbert and recently David Johnson of The Jimmy Hill Way and numerous media articles.
The main proposal in the 13th March 2019 letter is that any agreement to drop the litigation on Sisu’s behalf would have to contain terms for a stadium development supported by the Council in Coventry with enabling development on reasonable terms and a medium term interim arrangement with Wasps on commercially acceptable terms to stay at the Ricoh until Coventry City Football Club stadium is complete.
Just a few things that I want to actually deal with:
First of all in the summary on page 1 Sisu maintain the Club has never been offered the true ability to buy a stake in ACL. That is simply not bourne out by events.
In 2012 they were in discussion with the Alan Higgs Trust and they simply failed to agree on how the shares in ACL would be transferred to Sisu.
They maintained in 2012 that Heads of Terms were agreed and signed with the Council. Again this is not correct, they were signed with the Alan Higgs Trust and they will know why they did not conclude that deal.
They maintain also that the Council reneged on a rescue package for ACL. Again that is simply not true and the issue around the purchase of the loan by the Council from Yorkshire Bank has long been dealt with by Judicial Review 1 when their argument was soundly dismissed by Mr Justice Hickinbottom. Of course Mr Justice Hickinbottom in his judgment also clarified the deliberate distressing by Sisu of ACL when he described their “rent strike” when they stopped paying rent entirely. He observed, “ There can be no sensible doubt that cranking up the commercial pressure on ACL was quite deliberate on SISU’s part, and was designed to put SISU into the optimal commercial position to broker a deal most advantageous to them.”
In 2013 Councillor Ann Lucas as Leader of the Council entered into discussions with Sisu to explore if they would be interested in acquiring part or all of ACL. Their response was they wanted the sale of the Arena on an unencumbered freehold basis – another opportunity missed.
Ann made it very clear that we were in a position where we would have to move on.
Finally in October 2014 they had the opportunity to buy into ACL. Their bid was slightly higher than the bid made by Wasps for the Alan Higgs Trust shares however the offer from Wasps was unconditional and the Liquidators offer was conditional.
Three opportunities lost. There are many other errors within the statement last week. One of which was that there was not any mention of the rent strike between March 2012 to March 2013. They outlined that ACL received over £850,000 in rental payments at that time. Whilst that is true, most of this was taken out of the Escrow account.
1
I now want to move on to the current situation.
I believe that the way forward is for the litigation to be dropped by the Football Club owners. I say that because I believe that this action poisons relationships between the Football Club and other organisations who want to work with the Football Club to ensure that it moves forward.
We are all delighted that the team is within reaching distance of the League 1 play-offs and this is a major achievement after last year’s promotion.
The litigation is a distraction that I believe the Club can do without, Wasps can do without, the City Council can do without and I have said previously I do not welcome the resources that we have had to put in to defending decisions that have been confirmed again and again by the Courts to be correct.
Importantly the decision to continue with the litigation causes major distress in particular to supporters who want to go and support their team in Coventry and there should be no threat to that.
The way of the past cannot be the way of the future. It is not viable, it is not normal and the people of Coventry desire an end to a seemingly endless litigation process which approaches its 7th year and if conflated with the rent strike, approaches its 8th year.
Over the last 5 years the Football Club I believe have had a licensing agreement that has been very favourable to them. During that time I don’t believe the fans clearly understand what the owners plans are - whether a new stadium is Plan A, whether a ground share with another Club is Plan A or whether staying at the Ricoh is Plan A because the owners of the Club simply do not communicate either with the local media or with the supporters.
I would remind colleagues that Nick Eastwood made it very clear in February last year that there would be no further deal whilst the litigation remained in place. He could not have been clearer and I guess there were those who hoped that he did not mean what he said. The reasoning for that further year deal was because of a desire on behalf of Wasps not to hurt Coventry City supporters and I think that that is worth reflecting on. Otherwise there would have been no deal for the 18/19 football season.
For the Chief Executive of Coventry City Football Club over the last few months to ask what has changed is rather like the Japanese Emperor asking what had changed on the 8th December 1941.
It would help all parties if Sisu and Coventry City Football Club were to present the Council with written plans on their new stadium and what they would be seeking in terms of planning and enablement of the development.
I have made it clear repeatedly that any pre-planning application and planning application including highways environmental assessments and neighbour considerations would be dealt with in the same way as any other applicant. For there to be any suggestion that any applicant would not be treated even handedly is totally and utterly erroneous.
Indeed Council officers have talked to Coventry City Football Club around issues that relate to a relocation from the Ricoh Arena in recent years, the details of which I will not go into today.
2
So colleagues let me say that this issue needs to be drawn to a close, we need to get to a position in which Coventry City do not move out of Coventry again. I cannot see an easy way of ensuring that does not happen other than the legals are traded off for a deal at the Ricoh.
Now I am sure that Sisu’s answer will be that they have every right to continue with the litigation and appear to be oblivious to the consequences. It is a question I have asked before and I ask again today how is that some of the country’s most senior Judges Hickinbottom, Tomlinson, Tracy, Floyd, Singh, Fleur, McCombe, Irvine and Levison can all be wrong?
It is my view that instead of the letter that Sisu sent last week they should have addressed one issue – what is their primary objective? Is it the continuation of litigation or is it Coventry City Football Club’s future?
If legal action is their primary objective then it is my view that it is time for them to divest themselves of Coventry City Football Club and allow the football club to have its future in this City playing at the Ricoh so that everyone can enjoy the progress of Mark Robbins’ impressive young team.
3