Well, Well.... (17 Viewers)

[torchomatic]

December 2005 - We'd been at the Ricoh for four months:



HARD-UP Coventry City are trying to renegotiate the deal to rent the Ricoh Arena to help them through their current cash crisis.

Acting chairman Geoffrey Robinson has admitted he is in talks with the Arena company and Coventry City Council as part of his financial restructuring plan for the club.

The Sky Blues are paying pounds 1m a year to rent the new 32,000-seater stadium but Mr Robinson refused to confirm or deny that the club had approached the city council to release some of that cash to pay players' wages.

The money from the club's sale of Premier Club memberships to local businesses is held in a special account as a guarantee that it will pay its rent to the Arena company. It is understood the council - a major partner in the Arena scheme - would have to approve it being used for any other purpose.

The club is struggling financially as attendances at the Ricoh are not reaching the 23,000 break-even point given by former chairman Mike McGinnity earlier in the season but Mr Robinson categorically denied that the club was heading into administration.

"No, absolutely not," he said.

He said they were in talks with the Arena company, Coventry City Council and the club's bank over the best deal to suit everyone.

But he admitted the club will probably not be coming up with its financial plan for the next three years in time for its December 20 annual general meeting. He has already said the club's accounts will not be ready to be presented to the meeting.

The Coventry North West MP said: "We're in negotiations with all our partners to make sure we have genuinely well-based, profitable future which is what everybody wants.

"We're working on a plan for financial stability of the club and we'll make a statement (about that) as soon as we can.

"The late opening of the stadium caused problems. The point of the discussions is to (secure) the financial stability of the club over the next three years."

Asked if the club had requested a rebate of pounds 1 million from the city council, Mr Robinson said: "I'm not making any comment about the state of negotiations."

 

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[torchomatic]

A BACKBENCH Labour city councillor is demanding to find out more about the financing of Coventry's Ricoh Arena.

Brian Patton has filed a series of questions he wants answered at the next full city council meeting tomorrow.

They will be put just before the full council is asked to endorse a Cabinet decision to offer two sums of money to the firm running the Arena.

The Cabinet wants to give Arena Coventry Ltd (ACL) a five-and-a- half month rent-free period worth pounds 400,000 and offer it an "overdraft" of up to pounds 1 million.

The move is to compensate ACL for the Arena not being fully ready when it was opened on August 19 in ways which affected the firm's business.

Snags included hot water not being available, hotel and catering services not being ready and the heating not working properly in parts of the complex.

Cllr Patton (right) wants to know if the Sky Blues have in turn been offered a five and a half month rent-free period by ACL from their first match in August until the end of January.

He also wants to know if ACL has paid the council anything at all, when football matches and major concerts such as the Bryan Adams concert, have been held at the Arena.

And he's complaining that up to 11 key decisions about the Arena have been put to the council as matters of urgency - and so escaped being pored over by scrutiny boards.

He said: "There are now at least 111 occasions when a paper has been submitted either as a matter of urgency or straight to full council from Cabinet on this topic and which, as a consequence, also means that it could not be called in for scrutiny."

Cllr Patton, who has been a member of the Labour group since 1997, works for the probation service in Coventry and represents Henley ward.

He's firing his questions off to five Tory councillors - leader Ken Taylor, deputy Tony O'Neill, Cabinet members Gary Ridley and Dave Arrowsmith and chairman of scrutiny Tim Sawdon.

Cllr O'Neill said yesterday that they would consider the questions carefully before Tuesday's meeting but that some of the issues may be commercially confidential.

 

[ohitsaidwalker king power]

My My .. its groundhog day....

 

[torchomatic]

And no one can blame SISU for this one. This was only four months into the inaugural season. It seems the club realised it was being bled dry by good ole ACL even in those early days. Interesting to see what people think of this.

My My .. its groundhog day....

 

[Warwickhunt]

where did you dig that from Torchy

 

[Mary_Mungo_Midge]

So SISU's due diligence could have been completed by reading the back copies of The Telegraph?

 

[torchomatic]

InfoTrac .

 

[torchomatic]

LOL! Yes, that did make me laugh.

So SISU's due diligence could have been completed by reading the back copies of The Telegraph?

 

[speedie87]

So SISU's due diligence could have been completed by reading the back copies of The Telegraph?

You may joke but having been involved performing due diligence it's amazing what info a quick google search here and there can provide

 

[lordsummerisle]

And no one can blame SISU for this one. This was only four months into the inaugural season. It seems the club realised it was being bled dry by good ole ACL even in those early days. Interesting to see what people think of this.

Imagine it will be along the lines of:

"Due diligence", "McGoldrick offered £10,000 a week", "Signed contract", "Morally wrong" and "Fuck off Sisu".

Think that's covered all the bases.

 

[hamil99]

Regards of the mistakes made by sisu, no matter who owned the club, the council hav seen the club as a cash cow and are milking it dry. Can't see us having a club much longer, and I'm sure the council will happily let it go under as long as there is one more pay cheque...

 

[torchomatic]

Agree Hamil. The story really destroys any arguments from the pro-ACL crowd that it was only SISU who found the rent an issue. It seems after being in the Ricoh for less that FOUR MONTHS the club were trying to renegotiate. Again, it would be interesting to hear what PWKH will NOT say about it.

 

[CJparker]

And no one can blame SISU for this one. This was only four months into the inaugural season. It seems the club realised it was being bled dry by good ole ACL even in those early days. Interesting to see what people think of this.

"Mr Robinson refused to confirm or deny that the club had approached the city council to release some of that cash to pay players' wages."

Telegraph bullshit again. It is nonsense to say that ACL were/are "bleeding the club dry" - and you know it. Or, if it is true, would you be happy to immediately pay the council the £20-30m they paid to build the Ricoh?

 

[lordsummerisle]

"Mr Robinson refused to confirm or deny that the club had approached the city council to release some of that cash to pay players' wages."

Telegraph bullshit again. It is nonsense to say that ACL were/are "bleeding the club dry" - and you know it. Or, if it is true, would you be happy to immediately pay the council the £20-30m they paid to build the Ricoh?

How much did it actually cost to build the stadium though? Including knocking down the gasworks, reclamation and decontamination of the land etc?

They got a £60million stadium for a cut-price £20-30million.

 

[torchomatic]

The CET always seems to be "bullshit" when it's something you don't agree with. And yes, ACL are overcharging us on the rent. The story above says in black and white that the previous regime were trying to renegotiate the rent. Something you and others have always just laid at the door of SISU.

The second story is also pretty breathtaking as the Council was giving ACL a rent free period at the same time the club were going cap in hand saying "we can't afford it".

Disgusting really. Shameful exploitation of the club by the Council.

 

[CJparker]

If anything, it reminds us just how long the club's financial incompetance has forced them to plead poverty and demand charity from the taxpayer

 

[lordsummerisle]

So SISU's due diligence could have been completed by reading the back copies of The Telegraph?

The ever malleable Playdough Joe might have mentioned it you'd have thought.

Or maybe not.

 

[coundonskyblue]

The CET always seems to be "bullshit" when it's something you don't agree with. And yes, ACL are overcharging us on the rent. The story above says in black and white that the previous regime were trying to renegotiate the rent. Something you and others have always just laid at the door of SISU.

The second story is also pretty breathtaking as the Council was giving ACL a rent free period at the same time the club were going cap in hand saying "we can't afford it".

Disgusting really. Shameful exploitation of the club by the Council.

This is a world apart from sisu's bullying tactics of trying to destroy a business that belongs to the people of Coventry.

 

[Sky Blue Pete]

Alls the way as the feel good factor for a city is huge!!

 

[Grendel]

If anything, it reminds us just how long the club's financial incompetance has forced them to plead poverty and demand charity from the taxpayer

No it just proves the council just want to bleed the club dry and if they destroy it so what. Real supporters will be outraged by this.

 

[lordsummerisle]

This is a world apart from ACL's bullying tactics of trying to destroy a business that belongs to the people of Coventry.

Corrected that for you.

 

[CJparker]

When the club is gone the council will realise how much money away fans bring to pubs and local businesses, people from outside the city coming in and spending their money here.. all the trade around match days in the city be it pubs, eateries or brothals, its all contributing to Coventry. I really believe the council will rue the day they fecked the club up...

If the club goes, it won't be the council's fault. Just because there are economic benefits to the city, does not mean that the council has an obligation to subsidize CCFC.

 

[coundonskyblue]

When the club is gone the council will realise how much money away fans bring to pubs and local businesses, people from outside the city coming in and spending their money here.. all the trade around match days in the city be it pubs, eateries or brothals, its all contributing to Coventry. I really believe the council will rue the day they fecked the club up...

How dare the council save a £113m project for the benefit of the City that was in danger of going under due to the mismanagement of the football club.

 

[CJparker]

No it just proves the council just want to bleed the club dry and if they destroy it so what. Real supporters will be outraged by this.

Nope, wrong again. The council does not want to destroy the club - it just does not have an obligation to subsidise it.

I am a real supporter.

 

[torchomatic]

Jesus, look at you. You now have proof that the rent has been OTT since we moved into the bloody place, but still you side with ACL and against the Club you 'support'.

If anything, it reminds us just how long the club's financial incompetance has forced them to plead poverty and demand charity from the taxpayer

 

[SkyBlue_Bear83]

No it just proves the council just want to bleed the club dry and if they destroy it so what. Real supporters will be outraged by this.

Yea but the club agreed to it so end of story really :/ who cares about the club as long as ACL get their money? That is all that matters tbh

 

[CJparker]

Corrected that for you.

Haha - that's a good one. ACL are bullying by not paying the rent they are due to pay and threatening to leave the city...no, wait, that's not ACL is it??

 

[lordsummerisle]

If the club goes, it won't be the council's fault. Just because there are economic benefits to the city, does not mean that the council has an obligation to subsidize CCFC.

The same applies of course that just because there are economic benefits to the city(whilst CCFC are playing there of course), does not mean that the council has an obligation to subsidize ACL.

 

[CJparker]

Yea but the club agreed to it so end of story really :/ who cares about the club as long as ACL get their money? That is all that matters tbh

The point is that too many idiots blame ACL for the problems, as if it is ACL's fault...I resent the idea that they have an obligation to CCFC.

 

[torchomatic]

Although it did the exact opposite for ACL in those early months: "The Cabinet wants to give Arena Coventry Ltd (ACL) a five-and-a- half month rent-free period worth pounds 400,000 and offer it an "overdraft" of up to pounds 1 million."

SO you don't want the club subsidised, but you do want a joint venture quango to be subsidised?

Nope, wrong again. The council does not want to destroy the club - it just does not have an obligation to subsidise it.

I am a real supporter of ACL.

 

[CJparker]

The same applies of course that just because there are economic benefits to the city(whilst CCFC are playing there of course), does not mean that the council has an obligation to subsidize ACL.

Well the council co-owns ACL and it exists to make a profit. They own ACL, not the club, remember?

 

[lordsummerisle]

How dare the council save a £113m project for the benefit of the City that was in danger of going under due to the mismanagement of the football club.

Ah, so they got a £113million pound facility for £20-30million then?

Think that should be worth a few years rent free myself.

 

[torchomatic]

Just did a little bit of correction for you there.

I am a real supporter of ACL.

 

[hamil99]

I deleted my post while editing it (doh!). So here it is again, plus the edit.

When the club is gone the council will realise how much money away fans bring to pubs and local businesses, people from outside the city coming in and spending their money here.. all the trade around match days in the city be it pubs, eateries or brothals, its all contributing to Coventry. I really believe the council will rue the day they fecked the club up...


Edit. So the council,basically, don't give a fuck about local businesses, or their tax payers. In a pub, one busy day can make ur month, believe me I've been their..

 

[CJparker]

Although it did the exact opposite for ACL in those early months: "The Cabinet wants to give Arena Coventry Ltd (ACL) a five-and-a- half month rent-free period worth pounds 400,000 and offer it an "overdraft" of up to pounds 1 million."

SO you don't want the club subsidised, but you do want a joint venture quango to be subsidised?

Love the way the SISU rent-boys complain about "a quango" - real name, the company set up and managed on behalf of the council on commercial terms. It exists to make a profit and the ocuncil had to provide some funding to do that - they own it (or co-own it), so that's fine. Remind me how much a of a stake the council own of SISU or CCFC?

None.