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http://www.coventrytelegraph.net/news/coventry-news/coventry-city-fc-would-pay-8797060
Coventry City FC chairman Tim Fisher has confirmed the club would pay rent in any new stadium built by owners Sisu.
The confirmation came as Mr Fisher responded to questions from the Telegraph about how any new stadium could be financed.
Sky Blues owners Sisu have long stated their desire to build a new home in the “Coventry area” in order to enable the club to access revenue not available at the Ricoh Arena.
The Ricoh is currently operated by Premiership rugby side Wasps and the Sky Blues only receive a share of the business’s income which is limited to matchdays alone and covers 50 per cent of food and beverage sales, a share of car parking revenue and ticket sales.
Club bosses insist they must own their own ground in order to generate money all year round and become self-sustainable. It could also allow the club to be more competitive in light of strict Football League and Premier League rules which restrict how much clubs can spend on player wages based on income.
But many supporters remain sceptical about the idea and have questioned how a football club which suffered a £6.87million operating loss in its latest set of accounts could afford a new stadium.
[h=3][/h] Mr Fisher said any new stadium build would likely take place under a structure known as a “propco-opco” arrangement.
In simple terms that would involve setting up a property company to raise funds and build the stadium, while a separate stadium operating company – the football club in this instance – would operate the venue and benefit from all the revenues generated at the stadium.
However, there would also be a commitment from the operating company to enter into a rental agreement with the property company to allow the club to receive all stadium revenues, both matchday and non-matchday.
That would allow any debts accrued by the property company – such as those acquired in the construction of the stadium – to be kept separate from the operating company.
Mr Fisher said: “The capital cost would be met by a separate company, a property company.
“That’s the norm throughout football whenever projects like this are undertaken.
“The absolutely crucial thing here is that the football club would benefit from all matchday and non-matchday revenues generated at the stadium.
“Under the rules that now govern football – either financial fair play or salary cost management protocol – that allows us to get the best possible team on the pitch.”
Mr Fisher pointed towards Brentford, MK Dons and Scunthorpe as to what could be achieved under the plans.
Brentford’s plans also include 910 new homes and a hotel – and Mr Fisher claimed residential building could play a big role in any project undertaken for the Sky Blues.
Club officials have insisted talks have taken place with at least two councils over their plans for a new stadium – but every local authority in Coventry and Warwickshire has repeatedly denied those claims.
Coventry City FC chairman Tim Fisher has confirmed the club would pay rent in any new stadium built by owners Sisu.
The confirmation came as Mr Fisher responded to questions from the Telegraph about how any new stadium could be financed.
Sky Blues owners Sisu have long stated their desire to build a new home in the “Coventry area” in order to enable the club to access revenue not available at the Ricoh Arena.
The Ricoh is currently operated by Premiership rugby side Wasps and the Sky Blues only receive a share of the business’s income which is limited to matchdays alone and covers 50 per cent of food and beverage sales, a share of car parking revenue and ticket sales.
Club bosses insist they must own their own ground in order to generate money all year round and become self-sustainable. It could also allow the club to be more competitive in light of strict Football League and Premier League rules which restrict how much clubs can spend on player wages based on income.
But many supporters remain sceptical about the idea and have questioned how a football club which suffered a £6.87million operating loss in its latest set of accounts could afford a new stadium.
[h=3][/h] Mr Fisher said any new stadium build would likely take place under a structure known as a “propco-opco” arrangement.
In simple terms that would involve setting up a property company to raise funds and build the stadium, while a separate stadium operating company – the football club in this instance – would operate the venue and benefit from all the revenues generated at the stadium.
However, there would also be a commitment from the operating company to enter into a rental agreement with the property company to allow the club to receive all stadium revenues, both matchday and non-matchday.
That would allow any debts accrued by the property company – such as those acquired in the construction of the stadium – to be kept separate from the operating company.
Mr Fisher said: “The capital cost would be met by a separate company, a property company.
“That’s the norm throughout football whenever projects like this are undertaken.
“The absolutely crucial thing here is that the football club would benefit from all matchday and non-matchday revenues generated at the stadium.
“Under the rules that now govern football – either financial fair play or salary cost management protocol – that allows us to get the best possible team on the pitch.”
Mr Fisher pointed towards Brentford, MK Dons and Scunthorpe as to what could be achieved under the plans.
Brentford’s plans also include 910 new homes and a hotel – and Mr Fisher claimed residential building could play a big role in any project undertaken for the Sky Blues.
Club officials have insisted talks have taken place with at least two councils over their plans for a new stadium – but every local authority in Coventry and Warwickshire has repeatedly denied those claims.
