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Warring parties agree secret talks in last-ditch attempt to keep Sky Blues in Coventry
24 Jul 2013 06:45 Sisu/Otium and Arena Coventry Limited to enter negotiations over keeping Coventy City at Ricoh Arena
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A packed Ricoh Arena
Negotiations over the Sky Blues staying at the Ricoh Arena have been secretly scheduled for this week, the Telegraph can exclusively reveal.
Coventry City Football Club owners Sisu/Otium and part-council-owned Ricoh company Arena Coventry Limited (ACL) agreed on Monday to negotiate for the first time since March - when the club went into administration in a bitter legal wrangle.
It has been kept a closely guarded secret since the agreement at a creditors’ meeting held by administrator Paul Appleton after all sides agreed to a “media blackout”.
But the Telegraph has learned Coventry city councillors were briefed about it on Monday night by council finance director Chris West, who, alongside council chief executive Martin Reeves, is a director of ACL.
Coventry City Council Chief Executive Martin Reeves
It will be viewed as a last-ditch attempt to prevent Coventry City moving out of the city and playing ‘home’ games at Northampton Town for up to five years under Football League-sanctioned plans, while a new stadium is built in the Coventry area.
At least 5,000 joined a march in Coventry city centre on Saturday against the plans.
MPs, the Telegraph and others have campaigned for new negotiations to keep the Sky Blues at the Ricoh or for the Football League and FA to block the Northampton groundshare.
It is understood the negotiations have been scheduled to take place this Friday at the latest.
The two sides’ lawyers will discuss who would be a suitable person to mediate in the discussions as it is believed Mr Appleton’s offer to do so was rejected.
One source said: “We don’t know how far apart the two sides will be.
“They might be coming together reluctantly and it’s not known if they’ll be able to bridge the gap.”
There are many potentially insurmountable hurdles to an eventual agreement - not least a two-sided breakdown in trust and in some cases personal animosity between certain characters involved.
It is believed neither Sky Blues boss Tim Fisher or Sisu boss Joy Seppela will be present.
It is thought the club could be represented by director Mark Labovitch, finance director Steve Brookfield and development director Steve Waggot.
Steve Waggott
ACL is expected to be represented by Mr West and fellow director Paul Harris.
It is not known if there will be a seat at the table for Peter Knatchbull-Hugessen of the Alan Edward Higgs Charity, which half owns ACL alongside the council.
It is understood Coventry City owners Sisu/Otium have reluctantly agreed to negotiate because they desperately want ACL to sign Mr Appleton’s proposed Creditor Voluntary Arrangement (CVA) to enable the club to exit administration.
The Telegraph understands Coventry City will insist on ACL signing the CVA before there can be any second round of discussions over playing at the Ricoh.
The club desperately wants CCFC Limited to exit administration so that a Football League transfer embargo can be lifted, to enable new players to be signed.
The earliest the club can come out of administration is three weeks into the new season - which starts in ten days - as a 28-day “cooling off” period must follow any CVA agreement.
Mr Appleton has stated the alternative to CCFC Ltd exiting administration via a CVA is liquidation - which could incur a further 15-point League deduction from the club’s 2013/14 Division One campaign.
It is thought ACL is willing to discuss terms over rent payments and who receives matchday revenues - after it previously offered to lower annual rent from £1.3million to £400,000.
Sources believe Ms Seppala will be highly reluctant to enter into any partnership in the Ricoh, or return to being a tenant with ACL or the council as owner.
It is thought she will want 100 per cent ownership of the Ricoh, and that ACL will not want to sell on those terms.
The price of any such sale would also potentially be a major stumbling block.
Talks collapsed last year over Sisu becoming partners in ACL by buying out the Higgs charity’s 50 per cent share for around £4m.
Another major problem is Sisu’s outstanding High Court application for a judicial review against Coventry City Council’s £14m taxpayer deal in January to buy out ACL’s ‘mortgage’ bank loan.
The club claims the council acted against ‘state aid’ laws, created unfair competition and sought to “wrest control” of the club from its lawful owners - allegations the council denies.
Monday’s creditors’ meeting was adjourned until next Tuesday, when Mr Appleton will hope the CVA will be agreed.
Paul Appleton
Amendments to his CVA proposal could also be discussed in this week’s negotiations, sources claim.
Mr Appleton’s CVA proposal is to pay back £590,000 to ACL, partly as a proportion of the club’s £1.3m rental debts, through a £1.5m sale of CCFC Ltd to Otium.
He claims Otium had made the best offer, ahead of a bid by US property investor Preston Haskell IV, for the relatively limited assets in CCFC Ltd - and that another company, CCFC (Holdings) Ltd, held the major assets including players’ contracts.
The Telegraph yesterday reported there was confusion as to whether talks were about to take place - after a previously planned mention of “negotiations” was removed from Mr Appleton’s statement yesterday concerning the outcome of the creditors’ meeting.
Until now, ACL has stated the Ricoh doors are “wide open” on a rent-free/matchday-costs-only basis to the administrator - but only while the Sky Blues are in administration, while ACL challenged Sisu/Otium’s right to run the club.
24 Jul 2013 06:45 Sisu/Otium and Arena Coventry Limited to enter negotiations over keeping Coventy City at Ricoh Arena
Share on printShare on email
A packed Ricoh Arena
Negotiations over the Sky Blues staying at the Ricoh Arena have been secretly scheduled for this week, the Telegraph can exclusively reveal.
Coventry City Football Club owners Sisu/Otium and part-council-owned Ricoh company Arena Coventry Limited (ACL) agreed on Monday to negotiate for the first time since March - when the club went into administration in a bitter legal wrangle.
It has been kept a closely guarded secret since the agreement at a creditors’ meeting held by administrator Paul Appleton after all sides agreed to a “media blackout”.
But the Telegraph has learned Coventry city councillors were briefed about it on Monday night by council finance director Chris West, who, alongside council chief executive Martin Reeves, is a director of ACL.
Coventry City Council Chief Executive Martin Reeves
It will be viewed as a last-ditch attempt to prevent Coventry City moving out of the city and playing ‘home’ games at Northampton Town for up to five years under Football League-sanctioned plans, while a new stadium is built in the Coventry area.
At least 5,000 joined a march in Coventry city centre on Saturday against the plans.
MPs, the Telegraph and others have campaigned for new negotiations to keep the Sky Blues at the Ricoh or for the Football League and FA to block the Northampton groundshare.
It is understood the negotiations have been scheduled to take place this Friday at the latest.
The two sides’ lawyers will discuss who would be a suitable person to mediate in the discussions as it is believed Mr Appleton’s offer to do so was rejected.
One source said: “We don’t know how far apart the two sides will be.
“They might be coming together reluctantly and it’s not known if they’ll be able to bridge the gap.”
There are many potentially insurmountable hurdles to an eventual agreement - not least a two-sided breakdown in trust and in some cases personal animosity between certain characters involved.
It is believed neither Sky Blues boss Tim Fisher or Sisu boss Joy Seppela will be present.
It is thought the club could be represented by director Mark Labovitch, finance director Steve Brookfield and development director Steve Waggot.
ACL is expected to be represented by Mr West and fellow director Paul Harris.
It is not known if there will be a seat at the table for Peter Knatchbull-Hugessen of the Alan Edward Higgs Charity, which half owns ACL alongside the council.
It is understood Coventry City owners Sisu/Otium have reluctantly agreed to negotiate because they desperately want ACL to sign Mr Appleton’s proposed Creditor Voluntary Arrangement (CVA) to enable the club to exit administration.
The Telegraph understands Coventry City will insist on ACL signing the CVA before there can be any second round of discussions over playing at the Ricoh.
The club desperately wants CCFC Limited to exit administration so that a Football League transfer embargo can be lifted, to enable new players to be signed.
The earliest the club can come out of administration is three weeks into the new season - which starts in ten days - as a 28-day “cooling off” period must follow any CVA agreement.
Mr Appleton has stated the alternative to CCFC Ltd exiting administration via a CVA is liquidation - which could incur a further 15-point League deduction from the club’s 2013/14 Division One campaign.
It is thought ACL is willing to discuss terms over rent payments and who receives matchday revenues - after it previously offered to lower annual rent from £1.3million to £400,000.
Sources believe Ms Seppala will be highly reluctant to enter into any partnership in the Ricoh, or return to being a tenant with ACL or the council as owner.
It is thought she will want 100 per cent ownership of the Ricoh, and that ACL will not want to sell on those terms.
The price of any such sale would also potentially be a major stumbling block.
Talks collapsed last year over Sisu becoming partners in ACL by buying out the Higgs charity’s 50 per cent share for around £4m.
Another major problem is Sisu’s outstanding High Court application for a judicial review against Coventry City Council’s £14m taxpayer deal in January to buy out ACL’s ‘mortgage’ bank loan.
The club claims the council acted against ‘state aid’ laws, created unfair competition and sought to “wrest control” of the club from its lawful owners - allegations the council denies.
Monday’s creditors’ meeting was adjourned until next Tuesday, when Mr Appleton will hope the CVA will be agreed.
Paul Appleton
Amendments to his CVA proposal could also be discussed in this week’s negotiations, sources claim.
Mr Appleton’s CVA proposal is to pay back £590,000 to ACL, partly as a proportion of the club’s £1.3m rental debts, through a £1.5m sale of CCFC Ltd to Otium.
He claims Otium had made the best offer, ahead of a bid by US property investor Preston Haskell IV, for the relatively limited assets in CCFC Ltd - and that another company, CCFC (Holdings) Ltd, held the major assets including players’ contracts.
The Telegraph yesterday reported there was confusion as to whether talks were about to take place - after a previously planned mention of “negotiations” was removed from Mr Appleton’s statement yesterday concerning the outcome of the creditors’ meeting.
Until now, ACL has stated the Ricoh doors are “wide open” on a rent-free/matchday-costs-only basis to the administrator - but only while the Sky Blues are in administration, while ACL challenged Sisu/Otium’s right to run the club.
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