Open letter from Joy and Tim (6 Viewers)

[CovFan]

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Please read an open letter direct from Tim Fisher and Joy Seppala to the supporters of Coventry City Football Club

Dear Coventry City supporters,


Firstly we would like to commend Steven Pressley and the team for the great job they did last season. We are proud of both their style of football and the way the manager is moving his football model forward and everyone is looking forward to an exciting campaign next season with the main aim being to mount a strong challenge for promotion.

You have heard a lot from everyone else about any potential return to the Ricoh Arena. However, we understand that you want to hear from us about what is going on. You want the Sky Blues to return to play home games in Coventry. We do too. But any return to the Ricoh Arena has to be driven by Financial Fair Play. We want what is best for the club for the long term and this must be built on financial stability.

We appreciate that some of you have pledged to pay the rent for the Ricoh Arena. We are grateful. But unfortunately the rent is not the biggest problem. We have always been happy to pay a competitive rent but we need to access the match day revenues.

The club’s proposal is very simple. We are happy to pay a rent which is competitive in League One. But, we must have access to our very own match day revenues. That is, under Financial Fair Play Rules, all the business that is generated on a match day is managed by the club so that 60p in every £1 generated can be allocated to Steven Pressley to spend on improving and growing the calibre of the first team squad with promotion to the Championship and beyond in mind.

The generation of revenue also assists in maintaining and growing our excellent Academy so that we continue to produce young local talent to be developed by Steven Pressley and his coaching staff.

Our issue is why should the money you spend in support of the football club be taken away from the club? The first team and Academy should not be disadvantaged - your money should be invested into putting the best team on the pitch and cultivating young players that you can be proud of. As you know, investment in the playing talent is the lifeblood of a football club.

That said, we want the club playing home games in the right place as soon as possible – back in the Coventry community. So, we are ready and willing to talk about a deal that brings the club back to the Ricoh Arena, until we can own our own stadium.

In a statement earlier today, the Football League said the most immediate need is to 'concentrate on the more pressing issue of getting the club back to the Coventry area within the prescribed timeframe' as well as acknowledging 'the club has placed the full sum of £590,000 into an escrow account pending the outcome' of the Football League board’s deliberations. We completely agree and want to play our part to make this happen.

We know that reconciliation will need effort from all sides but we will do all we can as long as it does not jeopardise the long term future of the club. We know we haven’t done enough to communicate with you. We want this to change. We promise to share as much as we can about what is going on.

We are all passionate about the club becoming an essential part of the Coventry City community, determined to secure its long term future and build a team that continues to make us all proud for generations to come.​


- Joy Seppala & Tim Fisher

 

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[letsallsingtogether]

Its a bit late now the damage has already been done, do as you say for once do what is best for CCFC and leave.........

 

[chickentikkamasala]

Joy and Tim... it is not rocket science, STOP sending out silly messages like this and talk to ACL, then make a reasonable offer for the share CCFC sold in the arena years ago, if you want access to this revenue you have to PAY for it NOT try and distress it to get it on the cheap, now kindly jog on and get in touch will ACL.

This may help you.........

Telephone;

0844 8736500

Or write to; Ricoh Arena, Phoenix way, Foleshill, Coventry, CV66GE. (The true home of CCFC)

 

[Block19]

agree with statement, but still things don't add up right. Surely pay and fare rent and make money on ticket and shirt sales would still be the biggest income not pies and beer.

 

[Gray]

The timing of this statement is impeccable!

 

[DazzleTommyDazzle]

History suggests that we should be sceptical, but at least it appears to be a step in the right direction.

 

[blueflint]

i won't hold my breath more shit from shitzu

 

[Paddy9239]

If you look at the statement with a level of rationality, it's clearly paving the way to a return to the stadium. One of the most reasonable statements I've seen from Sisu. They're clearly ready to go back to the negotiation table.

You don't swallow your pride in public unless you want to achieve something greater.

Call me an optimist, but that is the best looking statement/news i've seen since the debacle began.

 

[lagger]

Joy and tim............ just sod off

 

[oldskyblue58]

Whilst welcoming a positive response .......

Actions speak louder than words.

Don't speak to the fans pick the phone up and speak to ACL.

Deals require some element of compromise on both sides - are they prepared to compromise? Never got that impression in the past

strange isn't it that both sides release statements before tomorrows march..............

too old and cynical I guess :thinking about:

 

[Chez78]

I've got issue with any of it, just stop with all the bullshit and make it happen. If they want access to the revenues and ACL won't give it them what difference does it make? it's only two years away and they will own their own stadium with all the access they want.

As stated before this is the majority of fans biggest gripe it's all to easy to see the bullshit between the lines with every statement they make.

 

[Mary_Mungo_Midge]

I can't read any further than the lecture about FFP against the backdrop of moving us to Northampton and losing 85% of our supporters...

 

[Moff]

I can't read any further than the lecture about FFP against the backdrop of moving us to Northampton and losing 85% of our supporters...

I think it might have spolied the letter if they had to admit they did that to distress ACL.

 

[turlykerd]

I can't read any further than the lecture about FFP against the backdrop of moving us to Northampton and losing 85% of our supporters...

Same...... Just skimmed after that

It is strange (or obvious) that statements are released just before the march.... Maybe we should march bimonthly, that way we would be way better informed ?

Finally.... No more statement s...unless it reads " we are back in Coventry..


Joy n timmem, just put the club back in cov

 

[oldskyblue58]

If this is for a short term deal say 2 or 3 years how much difference does the F&B really make to a return to the Ricoh. Car parking and advertising is easy to sort out. The biggest difference is match income

Sixfields ....... under £500k

Ricoh ........... £3m

it is not a difficult decision even without the F&B's ................... match receipts alone gives SP & the academy far more than Sixfields.

Should F&B's really kill a short term deal at the Ricoh? ................

 

[Mary_Mungo_Midge]

I think it might have spolied the letter if they had to admit they did that to distress ACL.

Good points, well made. It might have devalued the balance a touch...

 

[Ian1779]

I notice they said own their own stadium.... no mention of build.

 

[DazzleTommyDazzle]

If this is for a short term deal say 2 or 3 years how much difference does the F&B really make to a return to the Ricoh. Car parking and advertising is easy to sort out. The biggest difference is match income

Sixfields ....... under £500k

Ricoh ........... £3m

it is not a difficult decision even without the F&B's ................... match receipts alone gives SP & the academy far more than Sixfields.

Should F&B's really kill a short term deal at the Ricoh? ................

Absolutely - That is why any decision other than coming back to the Ricoh makes no economic sense at all.

 

[ccfc92]

I notice they said own their own stadium.... no mention of build.

I thought that too. Why say building a new stadium is plan a, then release a statement like this?

Anyway, actions speak louder than words.

 

[Samo]

I notice they said own their own stadium.... no mention of build.

Completely different tone to anything we've seen before from them. The first rung on a long long climb down.

 

[bigfatronssba]

Until they provide figures as to how playing at Sixfields with F&B's creates a higher turnover to the Ricoh without F&B's then I'm afraid I am not willing to listen to these incompetent buffoons.

I can only think season ticket sales must be slow and their legal advice regarding the appeal wasn't what they wanted to hear.

 

[Ian1779]

Completely different tone to anything we've seen before from them. The first rung on a long long climb down.

If they are now going to concede to bring us back then let them all get on with it. It's a step in the right direction.

 

[RFC]

agree with statement, but still things don't add up right. Surely pay and fare rent and make money on ticket and shirt sales would still be the biggest income not pies and beer.

Not about pies & beer, it's about ALL match day revenues.

Parking, catering, match day advertising boards etc. etc..

PUSB PUSB PUSB PUSB PUSB

 

[AFCCOVENTRY]

What happened to the land we are buying for a new stadium Fisheppla?

Statement released before big march against all things evil to fans.

Statement still goes on about stadium ownership.

Fpp is getting boring.

At one point i thought Fisher said the rent is too high for the club at the Ricoh? Now he is saying it's never been about the rent?

What I want to hear is an apology to the fans for this mess and admit they have done wrong.

Now if you want to turn a corner then make this fecking happen double time.

 

[sotonskyblue]

If you look at the statement with a level of rationality, it's clearly paving the way to a return to the stadium. One of the most reasonable statements I've seen from Sisu. They're clearly ready to go back to the negotiation table.

You don't swallow your pride in public unless you want to achieve something greater.

Call me an optimist, but that is the best looking statement/news i've seen since the debacle began.

As said in other thread have SISU been leant on by the FL and have they been tipped the wink that their JR appeal will fail?? There is a different tone to this statement from Joy/Tim,maybe they have been given some PR advice.Only time will tell

 

[lapsed_skyblue]

Both sides have effectively put pre conditions on any talks.
ACL want the matter of the £590,000 resolved. Understandably they want the money first: if the FL should decide to reverse or modify their original decision then this stance may have to change.
SISU will only talk if match day revenues are on the table.
ACL may also want safeguards such as any landlord with an unreliable tenant might require. For instance, a contract with a company that actually trades and has some assets.
I would agree that if this is to be only a short term deal until CCFC get their own stadium (whatever that means) then why get into the complications of match day revenues. Would SISU want access to ACL 's books in order to verify the payments? Would ACL want to do this? A rental agreement with perhaps an attendance related rebate should suffice.


Another interesting date - 7th August when the FL meet to discuss CCFC related matters. What's the betting that due to holidays and other commitments that if a meeting should actually get scheduled it will be after this date?

 

[RFC]

agree with statement, but still things don't add up right. Surely pay and fare rent and make money on ticket and shirt sales would still be the biggest income not pies and beer.

Until they provide figures as to how playing at Sixfields with F&B's creates a higher turnover to the Ricoh without F&B's then I'm afraid I am not willing to listen to these incompetent buffoons.

I can only think season ticket sales must be slow and their legal advice regarding the appeal wasn't what they wanted to hear.

They have never ever said that playing in Northampton improved the clubs financial situation, it's a short term solution to an ongoing long term problem that has existed for more years than I care to remember.

Stemming back to when we sold Highfield Road and then rented back but lost all the money we made paying rent!

 

[Kingokings204]

Rent was 7-8% of the clubs turnover. So that last sentance is just plain wrong.

 

[Ian1779]

Rent was 7-8% of the clubs turnover. So that last sentance is just plain wrong.

Really? When exactly was that then?

 

[Nick]

What exactly is covered by match day revenue they didn't get before ? Serious question.

 

[lifelongcityfan]

Not about pies & beer, it's about ALL match day revenues.

Parking, catering, match day advertising boards etc. etc..

PUSB PUSB PUSB PUSB PUSB

which is why they went to Northamp:blue:ton!!!!

 

[Kingokings204]

Really? When exactly was that then?

Everyone knows Ian, rent of 1.3 although being very overpriced it was only around 8% of the clubs money. Money was lost in numerous other areas.

Tbf that seems to be reitified now with a reduced wage bill and club better run financially than ever before (sixfields apart)

I agree they need match day incomes of course they do but pay a fair offer in as you need to buy them.

As I say 500k ticket sales sixfields or 3m at the Ricoh? And they want to tell me about FFP. Lol come on.

 

[chickentikkamasala]

What exactly is covered by match day revenue they didn't get before ? Serious question.

This was written 2 years ago by Oldskyblue58

Thought it might be an idea to have some facts about ACL instead of self interested spin ala Mr Fisher

-Owners of the long lease to operate the Ricoh Arena (approx 42 years left on lease)

-Owned by Coventry City Council and the Higgs Charity (50:50) with interlocking shareholders agreements ensuring each stakeholder has to approve the actions of the other. Each stakeholder has directors on the Board of ACL

- The council and Charity are bound by the rules and regulations of Local Government and Charity Commission respectively so their actions and the actions of their ACL directors are subject to far more scrutiny & liability than ordinary directors. Should imply a higher standard of what they can communicate but perhaps restrict how much they can say and how often

- sub lease the site to various tenants including CCFC, The Casino, De Vere Hotels

- The catering etc, and site management done through a joint venture between ACL & Compass known as IEC. ACL get a share of the net profits from the joint venture

- Over 80% of the income of the site is derived from conference, events and exhilbitions

- The match day income streams. All ticket income goes to CCFC. Match day packages and food (yorkshire bank suite etc) are sold to CCFC who then sell on at a profit. Car parking sold on to CCFC then resold by them at a profit. Kiosk income (and costs) belong to joint venture. Sponsorship income for ground/name belongs to ACL (it is their property after all CCFC sold those rights) Ricoh deal rolls on until 2025. Advertising split between CCFC and ACL.

- ACL paid a premium to acquire the long lease, and chose not to pay an annual rent by doing so. £21m

- Lease premium was financed by loan from Yorkshire Bank. 31/05/11 that loan stood at £16.2m (and has reduced since to an estimate of 15.6m). ACL pay interest at 1.265% abover LIBOR (0.5% approx) - pretty decent rate when you consider a lot of business mortgages currently.

Results - Turnover 2011 £6.6m 2010 £6.6m 2009 £6.8m
- Net Profit 2011 £470k 2010 £547k 2009 £3.223m (due to one off income from lease transfer)
- Fixed assets (long lease, improvements, equipment etc) at 31/05/11 £25m
- Debtors £1.7m and cash at bank £1.2m 31/05/11
- Total creditors 2011 26.3m 2010 £27.7m 2009 £32.7m
- Total creditors includes Bank loans 2011 £16.2m 2010 £16.8m 2009 £20.6m and income to be spread over a number of future years 2011 £ 7.5m 2010 £8.5m 2009 £7.7m
- net worth on balance sheet 2011 £1.5m 2010 £1.0m 2009 £ 0.49m

Auditors Reports - no mention of any concern regarding going concern, the reports were "clean"

Neither the Council nor Charity have taken a penny out of ACL and there is no intention to do so until the loans are cleared. All profits reinvested into the company

There is a mechanism to give the council an extra return on super profits above £3.75m (amount from memory ) on a sliding scale. It has never been taken as profits never high enough.

ACL, Council, Charity have all stated in the past they want to support a viable football club at the Ricoh.

All three are open to new stakeholders so long as they can prove the newstake holders are viable, able to invest in the development of the site, there is a long term future to the club.

The charity gave CCFC Ltd (not any other company or entity) the option to buy its shares. There is a formula etc but that is not public. That option is still valid and its termination depends on certain events in the agreement. There have been no discussions between charity and ccfc/sisu on the subject recently.

50% of the shares does not mean 50% of the turnover or profits. It entitles the owner to 50% of the dividends voted (no reserves to pay one so presently illegal and stakeholder policy is to pay off loans before any dividend paid). It would also entitle a shareholder to 50% of surplus assets on a winding up.

Currently CCFC owe ACL £1m in unpaid rent. The lease agreement terms stipulate that £500k has to be kept in an Escrow account as a deposit against default. CCFC are in default - this does not mean that the Escrow funds can be left depleted as rental payment but does mean ACL can draw on it to soften their cashflow blow caused by non payment. To be clear the lease requires rent to be paid £1.2m pa and the maintenance of £500k in the Escrow account.

Currently CCFC pay £10k approx per match. This is not rent or any contribution to rent. This is for the sell on of rights to car park income, the provision of food and staff for the corporate seats, power etc. These costs would be paid at any other club irrespective of whether rented or not.

ACL have repeatedly offered to have meaningful discussions with SISU over the rent.

This i hope will clarify some of the commentary regarding ACL from certain quarters. I would guess that as a good customer that ACL have been in contact with the bank on a regular basis. I would, from my own experience, expect the bank to have already looked some time ago at the value of CCFC's tenancy and concluded that CCFC is all but insolvent. If so then the bank has already factored in that information into its valuations and is still there. In the current and recent financial climate (say last 5 years) there is no real value to giving a tenancy to any football club - let alone the basketcase that is CCFC.

 

[Houchens Head]

I read this statement and immediately I thought, "this sounds like a bit of panic". Why? Then I realised. The "March" is tomorrow! They are trying to come across as nice people in the hope they will change fans minds about the march tomorrow. F**k 'em! Let's march! (Well, I can't - too far to travel but I'll be watching developments on here!)

 

[shmmeee]

Good start, got to be applauded even if it is with a suspicious eye.

Not about pies & beer, it's about ALL match day revenues.

Parking, catering, match day advertising boards etc. etc..

PUSB PUSB PUSB PUSB PUSB

It doesn't matter if its for a golden goose, even with ticket revenue only the Ricoh is far better than Sixfields. We can own our own stadium on our own terms at our leisure after that.