AFCCOVENTRY
Well-Known Member
Taxpayers could be hit with a bill for millions of pounds if the owners of the Sky Blues have successfully proved their case at a recent judicial review.
Supporters will have to wait at least two weeks before Justice Hickinbottom passes down his judgment following a three-day hearing at Birmingham High Court to determine whether a £14.4million Coventry City Council loan to Ricoh Arena operators ACL amounted to unlawful state aid.
Court documents show that, if successful in proving the loan was contrary to European law, Sisu have requested the judge orders another hearing to allow the club to seek damages from Coventry City Council.
That hearing would allow Sisu to set out the losses it believes it has suffered as a result of the council loan with a view to recovering them from the authority.
Those costs would likely include any loss of commercial sponsorship, the cost of the rent at Sixfields and any additional shortfall of income suffered as a result of the move to play ‘home’ fixtures 35-miles away in Northampton.
With attendances plummeting from an average of 10,900 at the Ricoh Arena to 2,348 at Sixfields this season the total bill is likely to run into millions of pounds.
Sisu has also asked the judge to order ACL to repay the loan to the council and a further payment equal to any commercial interest rate the judge believes should have been paid from the date of the loan to when it is recovered.
They have also sought a “prohibition order” in order to prevent the council from: “taking further actions to injure the claimant’s interests in the club and, specifically, from seeking to remove the claimants as owners of the club.”
During the hearing Sisu’s legal team asserted the loan was part of a plan to remove Sisu as owners of Coventry City.
However, the council’s legal team argued the club had only brought about the recent legal action in an attempt to distress ACL and gain control of the Ricoh Arena.
An order to repay £14.4million and attempt to source an alternative stream of funding would likely present significant business challenges to ACL.
If the council successfully defends the claim, the loan to ACL will remain in place and the company will continue to trade as normal.
Justice Hickinbottom will pass down his judgement at Birmingham High Court during the week commencing June 30.
Supporters will have to wait at least two weeks before Justice Hickinbottom passes down his judgment following a three-day hearing at Birmingham High Court to determine whether a £14.4million Coventry City Council loan to Ricoh Arena operators ACL amounted to unlawful state aid.
Court documents show that, if successful in proving the loan was contrary to European law, Sisu have requested the judge orders another hearing to allow the club to seek damages from Coventry City Council.
That hearing would allow Sisu to set out the losses it believes it has suffered as a result of the council loan with a view to recovering them from the authority.
Those costs would likely include any loss of commercial sponsorship, the cost of the rent at Sixfields and any additional shortfall of income suffered as a result of the move to play ‘home’ fixtures 35-miles away in Northampton.
With attendances plummeting from an average of 10,900 at the Ricoh Arena to 2,348 at Sixfields this season the total bill is likely to run into millions of pounds.
Sisu has also asked the judge to order ACL to repay the loan to the council and a further payment equal to any commercial interest rate the judge believes should have been paid from the date of the loan to when it is recovered.
They have also sought a “prohibition order” in order to prevent the council from: “taking further actions to injure the claimant’s interests in the club and, specifically, from seeking to remove the claimants as owners of the club.”
During the hearing Sisu’s legal team asserted the loan was part of a plan to remove Sisu as owners of Coventry City.
However, the council’s legal team argued the club had only brought about the recent legal action in an attempt to distress ACL and gain control of the Ricoh Arena.
An order to repay £14.4million and attempt to source an alternative stream of funding would likely present significant business challenges to ACL.
If the council successfully defends the claim, the loan to ACL will remain in place and the company will continue to trade as normal.
Justice Hickinbottom will pass down his judgement at Birmingham High Court during the week commencing June 30.
