Paxman II
Well-Known Member
The fact remains SISU along with Ray Ranson openly negotiated their way into this football club lock stock and barrel as it were. They demanded shares from the supporters and made wonderful promises for a brighter future.
Now they never considered a rent re negotiation did they? So they knew about that liability along with all the others.
The years that followed were a disaster. Ranson failed badly, the team and managers failed badly. Old directors appointed failed badly. Ranson went and SISU resumed full control. They then continued to fail badly at almost every decision they made. They have changed head personel several times and now we have Fisher after the previous tanned one and other suspects left the building.
Their mishandling cost us relegation. Financial losses continued to grow. Eventually SISU took hold of a dying situation that needed a blood transfusion or their likely investment of some £30m+ would be lost.
Stuck without buyers (no white hores riden by Hoffman materialised) and a stadium that now looked decidedly expensive as they hatch a plan of financial stability they continue to look at cutting their cloth to suit. That choice was made for them.
Various assets and companies set up to defend losses if the worse should happen (Avro etc) is a wise enough tactic.
They do continue to fund a club that needs their lifeline and to protect total loss of investment up to a point.
Then they play hardball with everything from staff, players and of course the landlords - ACL.
Regardless of their mistakes in the past they have rectified much of the clubs problems and put them on a course for some stability down the line. But they need some help. Question is should they expect help? Initially the thought is no but what if...?
What would Coventry be without its major football club playing at its only stadium? What does the football club mean to the City? These and other factors are an issue. Any other business and I would be inclined to say no , why should we take a hit to help you? But this is football and potentially crowds of Coventrian's who have enjoyed glory in the past and may see again in the not too distant future. There is a lot of commercial sense in keeping a major club in your town!
So we arrive at today. ACL and Higgs is a bit of a messy set up if truth be known. Not very workable in a modern world and not with a football club particulary. However Higgs are known to want out. £10m for a 50% stake in the leasehold seems very reasonable and we know that has a balloon attached to it. When exchanged it will be for the benefit of CCFC and not directly to 'keep' by an outside company such as SISU, passing rights directly to whoever buys CCFC further down the road so it benefits the club and one day may lead to full ownership perhaps.
Now ACL need a footbal club in there. The football club need to be in there. At the moment SISU are asking for help in areas that can be given and some of that help can be adjusted into loans for example. The overiding fact does remain that the club is where it is, rent is too high.
A compromise has to be found. But that must be reasonable, no peppercorn rent giveaway or too high a value either.
To that end and some hard ball stand off's, ACL have made a dramatic attempt at offering a deal thought to be acceptable. £400k and the full matchday concessions seems like a very good offer and one they can ill afford but must make. The scope beyond that I suggest is limited for them.
SISU (or Fisher at least) is still playing hard ball. The stadium is a premiership ground and was built as such. So what's fair? Policing cost, staffing cost etc are enormous and not helped by regulations that demand it at certain levels. Even so there's additional cost such as power and heat for a stadium we only fill one third capacity at the moment. Heating the pitch all week, is that stadium owners cost or the football club? You pay a rent you expect to be able to use it right? Can you turn down the lights to one third? No of course not. So all these cost must be factored in.
Having said all that somewhere close to ACL's limit which I beleive to be around £300/350k mark and the concessions may be the best SISU can expect. They must also take that back to when the dispute is dated from. A new contract should reflect the success of the football club underpinned by league status and average attendances. Rent should rise accordingly. A review clause should be set aside at the end of each year.
Guarantees by SISU underwritten to ACL too.
Always remember potentially we are looking at a full house every game with some 35k people flocking to the Ricoh facilities when we get back to the premiership. That benefits all other tenants and national exposure for the City. Yes ACL need the football club long term and right now the football club need some help and I accept that but will not morally and effectively bankrupt ACL in doing so.
CCFC is afterall a private business and must learn to operate within the bounds of what's right and proper. Santa is coming I'm sure but lets hope it is the final time and with MR's gaining momentum on the pitch and more deadwood playing staff to go the financies and on pitch success will rise from the depths we have fallen to. The people of Coventry will come out in force when they are convinced after such a long wait that we are indeed on the right track finally. Owners are mere blank faces to me. So long as we have sustained success and remain viable and competitive I don't care who sits in the boardroom.
Sorry end of rant.
Now they never considered a rent re negotiation did they? So they knew about that liability along with all the others.
The years that followed were a disaster. Ranson failed badly, the team and managers failed badly. Old directors appointed failed badly. Ranson went and SISU resumed full control. They then continued to fail badly at almost every decision they made. They have changed head personel several times and now we have Fisher after the previous tanned one and other suspects left the building.
Their mishandling cost us relegation. Financial losses continued to grow. Eventually SISU took hold of a dying situation that needed a blood transfusion or their likely investment of some £30m+ would be lost.
Stuck without buyers (no white hores riden by Hoffman materialised) and a stadium that now looked decidedly expensive as they hatch a plan of financial stability they continue to look at cutting their cloth to suit. That choice was made for them.
Various assets and companies set up to defend losses if the worse should happen (Avro etc) is a wise enough tactic.
They do continue to fund a club that needs their lifeline and to protect total loss of investment up to a point.
Then they play hardball with everything from staff, players and of course the landlords - ACL.
Regardless of their mistakes in the past they have rectified much of the clubs problems and put them on a course for some stability down the line. But they need some help. Question is should they expect help? Initially the thought is no but what if...?
What would Coventry be without its major football club playing at its only stadium? What does the football club mean to the City? These and other factors are an issue. Any other business and I would be inclined to say no , why should we take a hit to help you? But this is football and potentially crowds of Coventrian's who have enjoyed glory in the past and may see again in the not too distant future. There is a lot of commercial sense in keeping a major club in your town!
So we arrive at today. ACL and Higgs is a bit of a messy set up if truth be known. Not very workable in a modern world and not with a football club particulary. However Higgs are known to want out. £10m for a 50% stake in the leasehold seems very reasonable and we know that has a balloon attached to it. When exchanged it will be for the benefit of CCFC and not directly to 'keep' by an outside company such as SISU, passing rights directly to whoever buys CCFC further down the road so it benefits the club and one day may lead to full ownership perhaps.
Now ACL need a footbal club in there. The football club need to be in there. At the moment SISU are asking for help in areas that can be given and some of that help can be adjusted into loans for example. The overiding fact does remain that the club is where it is, rent is too high.
A compromise has to be found. But that must be reasonable, no peppercorn rent giveaway or too high a value either.
To that end and some hard ball stand off's, ACL have made a dramatic attempt at offering a deal thought to be acceptable. £400k and the full matchday concessions seems like a very good offer and one they can ill afford but must make. The scope beyond that I suggest is limited for them.
SISU (or Fisher at least) is still playing hard ball. The stadium is a premiership ground and was built as such. So what's fair? Policing cost, staffing cost etc are enormous and not helped by regulations that demand it at certain levels. Even so there's additional cost such as power and heat for a stadium we only fill one third capacity at the moment. Heating the pitch all week, is that stadium owners cost or the football club? You pay a rent you expect to be able to use it right? Can you turn down the lights to one third? No of course not. So all these cost must be factored in.
Having said all that somewhere close to ACL's limit which I beleive to be around £300/350k mark and the concessions may be the best SISU can expect. They must also take that back to when the dispute is dated from. A new contract should reflect the success of the football club underpinned by league status and average attendances. Rent should rise accordingly. A review clause should be set aside at the end of each year.
Guarantees by SISU underwritten to ACL too.
Always remember potentially we are looking at a full house every game with some 35k people flocking to the Ricoh facilities when we get back to the premiership. That benefits all other tenants and national exposure for the City. Yes ACL need the football club long term and right now the football club need some help and I accept that but will not morally and effectively bankrupt ACL in doing so.
CCFC is afterall a private business and must learn to operate within the bounds of what's right and proper. Santa is coming I'm sure but lets hope it is the final time and with MR's gaining momentum on the pitch and more deadwood playing staff to go the financies and on pitch success will rise from the depths we have fallen to. The people of Coventry will come out in force when they are convinced after such a long wait that we are indeed on the right track finally. Owners are mere blank faces to me. So long as we have sustained success and remain viable and competitive I don't care who sits in the boardroom.
Sorry end of rant.
