I wonder if/when we'll see a statement on the official
Do you think SISU could have planned that this may happen?
Do you think SISU could have planned that this may happen?
I wonder if/when we'll see a statement on the official
Honestly? No. Now, however, we find out what SISU's true objectives are.
Bear in mind that in the financial year 2010-11, reported losses were £6.7m; so even with the rent free they'd have lost a fortune. Those who think the 'exorbitant' rent is the biggest crisis the club faces evidently haven't taken the time to take in the bigger picture
Honestly? No. Now, however, we find out what SISU's true objectives are.
Bear in mind that in the financial year 2010-11, reported losses were £6.7m; so even with the rent free they'd have lost a fortune. Those who think the 'exorbitant' rent is the biggest crisis the club faces evidently haven't taken the time to take in the bigger picture
I dont think anybody solely blames the rent. Its rather like ACL continually stating that players wages are the biggest single contributor to our issue, well no sh!t Sherlock, however they refused to pay out for a better standard of player and we all ended up losing out.....
" And please stop trying to blame all the Club’s financial problems on the stadium rent, while drawing misleading and inaccurate comparisons between the rent paid by CCFC and that paid by other Football League One clubs, none of whom enjoy the benefits of a facility comparable to the Ricoh Arena."
Well we have changing rooms, pitch,toilets and seats just like any other league 1 club I don't get yourpoint? The team can't even train on the pitch. The only realdifference is more seats which we can't fill anyway.
We don't get any other revenue from anypart of the Ricoh unlike other league 1 clubs do.
The initial rent agreed should neverhave been accepted in the first place because it is clearly rippingoff the club and IS partly responsible for our current plight despitewhat you say.
Even with this new development if CCFCwere to leave the whole place will become a white elephant and thecouncil will be left with egg on their face. Seems odd the councilcan find money to lend ACL. Having been in Cov a few weeks ago theroads are still full of pot holes and the City feels really run down.Maybe this money would have been better spent sorting that out.
I don't like SISU but common sense saysthe rent must be lowered considerably if our club is going to haveany chance of being successful again
It has been difficult keeping quiet, having information and not being able to share it. The Coventry Telegraph will have more I am sure about what has happened this afternoon.
We have been working hard to do what any business should do when faced with such a serious challenge as ACL has faced with Sisu’s rent strike. I am sure that many of you will have heard the news that Coventry City Council has made an agreement with Yorkshire Bank for the Council to pay off the debt Arena Coventry Limited previously owed to the Bank. The Council will now make a loan to ACL of £14.4m, which will make repayments to the Council at an interest rate much more affordable for ACL as a business.
You will have other questions about how much, how long, what rate of interest etc, at the moment I am unable to answer as they remain under commercial confidentiality.
The agreement gives ACL’s already strong business even more stability. It means that the Board of Directors can plan for the long term with more confidence than ever. The people of Coventry will also benefit as the interest on the repayments made by ACL will be available to the Council to spend on goods and services.
This is a decisive move by the Council to secure the long-term future of the Ricoh Arena as an asset for the City of Coventry and a decision which ought to be welcomed and applauded by everyone posting on this forum.
I am already receiving calls and messages asking me what this means with regard to the situation with Coventry City Football Club. The short answer is that nothing has changed. CCFC, under the ownership of Joy Seppala and her Sisu staff including Tim Fisher, has a legal obligation to pay its stadium rent.
The Board of ACL has already issued a Statutory Demand for payment, the deadline for which has long since passed, and is now looking at its legal options. These legal options include petitioning the courts to grant an order to wind up CCFC and starting off the process of placing the Club into compulsory liquidation.
Nobody wants this to be the outcome, but the clock is ticking and now is the time when Joy Seppala and her colleagues need finally to take responsibility for their actions, pay the rent which is lawfully owed, and come to the table with the Board of ACL to present a realistic business and financing plan which will safeguard the future of CCFC.
And why wouldn’t they want to do this? The City Council has just presented them with an opportunity to build a better business relationship with an outstanding business which is in an enviable and sustainable financial position. Everyone at ACL is absolutely committed to seeing the Sky Blues play at the Ricoh Arena for many years to come.
My appeal to Sisu is therefore a simple one; please come and have a sensible conversation. And please stop trying to blame all the Club’s financial problems on the stadium rent, while drawing misleading and inaccurate comparisons between the rent paid by CCFC and that paid by other Football League One clubs, none of whom enjoy the benefits of a facility comparable to the Ricoh Arena.
From the Higgs Charity’s perspective as a shareholder, we are completely in support of the Council’s move today. I am sure there will be speculation also about the Charity’s intentions in relation to holding on to its stake holding in ACL. Some of you may even feel that this would be a sensible time for Sisu to make a realistic offer to assume the Charity’s share.
Again our position is unchanged. The trustees are proud to be part of ACL and we’re committed to the Arena for as long as it takes. We won’t be bullied or harassed by anyone trying to take our share in the business for less than its true value. But, if any third party makes a sensible and realistic offer, then we will of course give it the consideration it merits.
Once again I apologise for the length of this update. I would of course have preferred to share this sooner but I am bound by the obligations of the law and of confidentiality on this hugely sensitive matter. As ever, I am happy to answer questions where I am able to do so.
Who actually agreed this initial rent in the first place, I don't mean CCFC, who who in particular at CCFC signed off this deal?
Apologies if may sound a stupid question.
New Owners for a New Start
Who actually agreed this initial rent in the first place, I don't mean CCFC, who who in particular at CCFC signed off this deal?
Apologies if may sound a stupid question.
OOOOOOOHHH GREAT!! Do you know any?
GOOD NEWS!!!!!!!!!!
This stops any hostile take over from SISU.
Looks like Joys plan isn't going very well, they well sell up soon!
New Owners for a New Start
The club will probably be the first ever to be wound up by its local council.
Can you think of any football club that's refused to pay no rent whatsoever for a year, on a facility they're still using, week-in, week-out?
Hull city I believe.
Can you think of any football club that's refused to pay no rent whatsoever for a year, on a facility they're still using, week-in, week-out?
Can you think of any football club that's refused to pay no rent whatsoever for a year, on a facility they're still using, week-in, week-out?
I wonder if/when we'll see a statement on the official
Are you sure? I know they've refused to pay for improvements without holding the freehold. In December, for example, Assem Allam stated "There is no future for me and the KC Stadium unless it is freehold. If you rent a house, then you don't pay to put an extension on it," he said.
That statement would insinuate they do pay rent, wouldn't it?
ACL view poiint
Clever move by ACL and its stakeholders. Did anyone really believe that they would be sitting around waiting for SISU and Joy to call the tune. It takes away any threat of SISU distressing ACL by taking over the Yorkshire bank loan, creating a default and calling it in, thereby getting their hands on the long lease. The reason the council do not want that isnt just because of SISU's actions over the last 5 years but also they could end up losing control of the North Coventry redevelopment - simply couldnt allow that. ACL end up paying less annually for its loan and the Council actually earn better from their investments ie a net contribution to their coffers. ACL paid yorkshire bank £1.66m a year on the loan (incl. £1m in interest) - say they borrowed £14.5m over 40 years at 5% (all guess work) then the repayments are £845K per year (incl 725K interest). ACL are better off in terms of reduced interest but save £820k in cashflow. The council receive £725K interest in year 1 which I would guess is a net gain of at least £300K
We as fans see this as all about the club and its ground........... firstly it isnt CCFC's ground and secondly the Council and even the Charity have far wider responsibilities. If SISU now come to the table to settle this then it will tell us something...... but with this loan to ACL in place then do not expect ACL to lower the deal past their last offer, imo the last offer will stand.
Just a point it is up to ACL alone if they back date anything but I see no legal reason why they should. The debt is not £1m now it is more like £1.4m and rising because SISU wont deal and have chosen not to pay - it did not have to be that way. A consequence of all this is that over the next couple of years ACL will seek to be "football club" proof - develop sources of income, better utilise the site, manage the business differently to do that. ACL, the Council, Charity simply do not trust SISU and that is going to hinder CCFC
CCFC viewpoint
I suspect have been caught flat footed by this however SISU will have put some contingency plans in to place. What they will be I am not sure as the players, league share and lease are all vested in CCFC Ltd and cannot be transferred. I think they have misread the resolve of the council and its ability to source funds. This was not a private engineering company that they can pressure to submission. They are effectively left with three immediate options- agree a rent trade on and see where that takes them OR sell it on for the best deal they can OR let it go bump. I do think their plan was to obtain the site - no cant prove it- but what they do next will perhaps give us a clue. The prospect of CCFC actually owning the stadium or part of it either freehold or shares in ACL is right now further away than ever....... the council now control the situation, and they to a man do not seem to trust SISU's actions or motives, and why should they. This all leaves CCFC still on the brink but not actually lacking of an intention of support by Council and Charity.
The club should be able to prove better cost control systems but not necessarily actions across the board, it can point to better results on the pitch and improving footfall at their games, it should be able to point to reduced losses because of the cup runs etc. The club can put a good argument that £1.2m was too much rent - but in reality i think that has been accepted - what wont happen is that there will be a new lease, the amount of rent might be less but the terms will remain. The club will if they choose to accept obtain a lower rent (400K), they will have to pay at least a significant part of the debt now accumulated (over 10 years) and they will have access to nearly all match day profits. I think that is the best they will get.
my view
If nothing else todays news means that this matter has to be settled one way or another - the period of limbo is coming to an end.
Are you sure? I know they've refused to pay for improvements without holding the freehold. In December, for example, Assem Allam stated "There is no future for me and the KC Stadium unless it is freehold. If you rent a house, then you don't pay to put an extension on it," he said.
That statement would insinuate they do pay rent, wouldn't it?
Ipswich
Posh seemed to be (or were I don't know their situation) pissed as well, they paid £1 a year at one point.
http://www.peterboroughtoday.co.uk/...chief-to-refuse-to-pay-stadium-rent-1-3688832
As ever - very sensible analysis.
I agree with you on SISU's 3 options.
Letting the club "go bump" will not be attractive to them for the obvious reasons. Will the recent upturn in fortunes persuade them that they might be able to (at least) stem their losses while having a possible revenue upside from promotion/Wembley etc? If not, will they be prepared to look at a sensible deal for selling the club (i.e. for not very much) if there are any prospective purchasers out there who are prepared to deal with them?
An interesting (and nervous) time ahead!
And on another note surely it would be in both ACL interest and CCFCs to reach a lower rent agreement.
Correct me if I'm wrong ACL stated before they would survive without ccfc as we provide 17%of their income..recent events would suggest they won't survive without a club
There is interest in football clubs at the right price, for instance at Brum http://www.bbc.co.uk/sport/0/football/19886283
Sisu knew there was some market when they bought us- as a hedge fund they must have had a view of prospective buyers; unless they were absolutely incompetent :0/
There problem is they screwed up and will have to sell at a loss, at a market rate.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?