CLUB STATEMENT - JR Verdict (1 Viewer)

ccfcway · Jun 30, 2014

Coventry City Football Club and its owners' primary objective remains building a long-term future...

The Judgement by Hickinbottom J, that the Council's (CCC) decision to provide a £14.4 million loan to private stadium management company Arena Coventry Limited (ACL) was not an unlawful subsidy, is unfortunate.

The football club and its owners believe that the loan, which exceeded the value of the stadium by almost 200%, was neither lawful nor in the interests of the supporters, taxpayers, stadium operators or the Club.

ACL will now remain burdened with debt for the next 43 years, removing any prospect of a long term return to the stadium by the Club. With this level of debt there is no realistic prospect of any sports franchise or ACL being able to generate sufficient revenue to be commercially viable.

We will apply for leave to appeal this decision. Now, more than ever, the new stadium is the only viable commercial option. The owner's primary objective remains building a long term sound financial platform for the future growth of the Club.

Read more at http://www.ccfc.co.uk/news/article/...e-one-300614-1706394.aspx#r0PA8t2oRmjhBxPl.99

bigfatronssba · Jun 30, 2014

That is a seriously bitter and twisted statement.

ccfcway · Jun 30, 2014

the good news is we are some way down the line to knowing the colour of the curtains for the new stadium, so just need to put the rest of the finishing touches in place and we are ready to me in.

edgy · Jun 30, 2014

bigfatronssba said:
That is a seriously bitter and twisted statement.

Not a lot can be argued with though. Its a sad reality.

ccfcway · Jun 30, 2014

yet no comment about the possibility of moving back to Ricoh is short term until its built ?

lewys33 · Jun 30, 2014

ccfcway said:
yet no comment about the possibility of moving back to Ricoh is short term until its built ?

This is my biggest issue. No problem with a new stadium.

bigfatronssba · Jun 30, 2014

edgy said:
Not a lot can be argued with though. Its a sad reality.

These bits are opinion:

"which exceeded the value of the stadium by almost 200%"

"ACL will now remain burdened with debt for the next 43 years, removing any prospect of a long term return to the stadium by the Club. With this level of debt there is no realistic prospect of any sports franchise or ACL being able to generate sufficient revenue to be commercially viable."

To be honest if ACL had the appetite for more legal action they could probably force a retraction of that statement.

kmj5000 · Jun 30, 2014

ccfcway said:
Coventry City Football Club and its owners' primary objective remains building a long-term future...

The Judgement by Hickinbottom J, that the Council's (CCC) decision to provide a £14.4 million loan to private stadium management company Arena Coventry Limited (ACL) was not an unlawful subsidy, is unfortunate.

The football club and its owners believe that the loan, which exceeded the value of the stadium by almost 200%, was neither lawful nor in the interests of the supporters, taxpayers, stadium operators or the Club.

ACL will now remain burdened with debt for the next 43 years, removing any prospect of a long term return to the stadium by the Club.

Read more at http://www.ccfc.co.uk/news/article/...e-one-300614-1706394.aspx#r0PA8t2oRmjhBxPl.99

So how exactly does the loan "remove any prospect of a long-term return to the stadium by the club"?

ccfcway · Jun 30, 2014

exactly. how are they able to get away with a comment like that ?
]
How are "CCFC" in any position to comment about anyone's level of debt !

AFCCOVENTRY · Jun 30, 2014

That statement looks like it has been written by a petulant child.

How does this remove any chance of a new rental deal?

Senior Vick from Alicante · Jun 30, 2014

So here we go, appeal after appeal with no chance of winning while saddling the club with the debt. These people are absolute idiots with no interest in the club, the city or the fans. How can the football league let these clowns away with the miss-management of a community asset? Please SISU cut your losses and go you have no support and no chance of winning an appeal, this is one business venture that is out of you area of expertise and you've blown it. The city doesn't want you the supporters don't want you and football as a whole does not need your type.

Samo · Jun 30, 2014

ccfcway said:
Coventry City Football Club and its owners' primary objective remains building a long-term future...

The Judgement by Hickinbottom J, that the Council's (CCC) decision to provide a £14.4 million loan to private stadium management company Arena Coventry Limited (ACL) was not an unlawful subsidy, is unfortunate.

The football club and its owners believe that the loan, which exceeded the value of the stadium by almost 200%, was neither lawful nor in the interests of the supporters, taxpayers, stadium operators or the Club.

ACL will now remain burdened with debt for the next 43 years, removing any prospect of a long term return to the stadium by the Club. With this level of debt there is no realistic prospect of any sports franchise or ACL being able to generate sufficient revenue to be commercially viable.

We will apply for leave to appeal this decision. Now, more than ever, the new stadium is the only viable commercial option. The owner's primary objective remains building a long term sound financial platform for the future growth of the Club.

Read more at http://www.ccfc.co.uk/news/article/...e-one-300614-1706394.aspx#r0PA8t2oRmjhBxPl.99

Carefully chosen words?

ccfcway · Jun 30, 2014

they have had best part of a week to write that.

A very small part of me could forgive them if it was typed on a phone as a response to hearing the news 39 mins ago, but to draft this after a week is simply bizarre

DazzleTommyDazzle · Jun 30, 2014

Samo said:
Carefully chosen words?

I had the same thought.

Does ruling out a "long term return" suggest that they may be open to a "short term return".

It's always seemed the most sensible option if both sides can put the bad blood of the past behind them.

I know that's quite a big "if", but let's hope.....

italiahorse · Jun 30, 2014

Hell has no wrath like a woman scorned.
We will now see SISU in their true light.
Expect more threats like this but rest assured they will go eventually.
Please go now. Nobody wants you here.

fernandopartridge · Jun 30, 2014

Any prospective new owners of CCFC not only buy a heavily indebted club but would also need to buy into a heavily indebted management company if it wished to gain some income from playing at the Ricoh.

Where next?

kmj5000 · Jun 30, 2014

"Just a sideshow" eh Mark?

bigfatronssba · Jun 30, 2014

fernandopartridge said:
Any prospective new owners of CCFC not only buy a heavily indebted club but would also need to buy into a heavily indebted management company if it wished to gain some income from playing at the Ricoh.

Where next?

Why would they? ACL can still be bought with the loan in place.

Its a loan that will be at a better rate than the funding for the new fantasy stadium will ever be.

Samo · Jun 30, 2014

fernandopartridge said:
Any prospective new owners of CCFC not only buy a heavily indebted club but would also need to buy into a heavily indebted management company if it wished to gain some income from playing at the Ricoh.

Where next?

ACL need to go just as surely as SISU do.

Grendel · Jun 30, 2014

Samo said:
ACL need to go just as surely as SISU do.

Exactly. While they are still around the club will never return.

BrakesFan · Jun 30, 2014

ccfcway said:
exactly. how are they able to get away with a comment like that ?
]
How are "CCFC" in any position to comment about anyone's level of debt !

My thoughts exactly. What is the club's debt as a proportion of the club's value, by the way?

torchomatic · Jun 30, 2014

Exactly. They're buying a company with even more debt after buying CCFC which is saddled with debt. Hardly an attractive proposition, is it?

bigfatronssba said:
Why would they? ACL can still be bought with the loan in place.
.

ccfcway · Jun 30, 2014

Grendel said:
Exactly. While they are still around the club will never return.

we will, they said we are building a new stadium.

Deleted member 5849 · Jun 30, 2014

DazzleTommyDazzle said:
I had the same thought.

Does ruling out a "long term return" suggest that they may be open to a "short term return".

It's always seemed the most sensible option if both sides can put the bad blood of the past behind them.

I know that's quite a big "if", but let's hope.....

The problem as everis where's the incentive? Problem is now the 'where's the incentive' switches the other way. If the Ricoh's occupied for three years while a rival ground goes up, it stops them finding a long term future for themselves so... in those circumstances, why would you accept a deal with CCFC unless calling *their* bluff and assuming a ground will never happen?

bigfatronssba · Jun 30, 2014

torchomatic said:
Exactly. They're buying a company with even more debt after buying CCFC which is saddled with debt. Hardly an attractive proposition, is it?

Its a more attractive proposition than buying a 3rd Division club that owns a ground but is £100m in debt.

torchomatic · Jun 30, 2014

Well, it is to you because you're not going to be spending any of your cash.

bigfatronssba said:
Its a more attractive proposition than buying a 3rd Division club that owns a ground but is £100m in debt.

lewys33 · Jun 30, 2014

torchomatic said:
Exactly. They're buying a company with even more debt after buying CCFC which is saddled with debt. Hardly an attractive proposition, is it?

more or less debt than a new smaller stadium would create?

covcity4life · Jun 30, 2014

of ffs will this ever end? i cant even joke about it anymore.

devastated.

bigfatronssba · Jun 30, 2014

torchomatic said:
Well, it is to you because you're not going to be spending any of your cash.

Your saying then that a 3rd division team £100m in debt, with a non league fanbase, playing in a 12k stadium is an attractive proposition??

Warwickhunt · Jun 30, 2014

Deleted member 5849 said:
The problem as everis where's the incentive? Problem is now the 'where's the incentive' switches the other way. If the Ricoh's occupied for three years while a rival ground goes up, it stops them finding a long term future for themselves so... in those circumstances, why would you accept a deal with CCFC unless calling *their* bluff and assuming a ground will never happen?

It would make some sort of sense to get free money from KCIC/consortium to pay your rent and matchday expenses for 3 years whilst they take stock of what they are going to do! Besides listening to what everyone keeps telling me that they will not return even if the club is at the Ricoh whilst SISU has anything to do with the club. So they will not get over 5K anyway.

torchomatic · Jun 30, 2014

About as attractive as rattling around inside the Ricoh with a massive debt and no revenue. Lose-lose really.

bigfatronssba said:
Your saying then that a 3rd division team £100m in debt, with a non league fanbase, playing in a 12k stadium is an attractive proposition??

fernandopartridge · Jun 30, 2014

bigfatronssba said:
Why would they? ACL can still be bought with the loan in place.

Its a loan that will be at a better rate than the funding for the new fantasy stadium will ever be.

Er yes. To buy ACL you buy the liability. Or do you buyout the loan to buy ACL? I think we've been down this road before.

bigfatronssba · Jun 30, 2014

fernandopartridge said:
Er yes. To buy ACL you buy the liability. Or do you buyout the loan to buy ACL? I think we've been down this road before.

Why would you have to buy the liability? The loan is to ACL, not the owners of ACL.

You would simply buy ACL and continue to make the repayments.

sky blue john · Jun 30, 2014

covcity4life said:
of ffs will this ever end? i cant even joke about it anymore.

devastated.

What's devastating ?
We are in no better or worse position than we were yesterday.
Other than proven in a court of law Sisu spout bollux !!

fernandopartridge · Jun 30, 2014

bigfatronssba said:
Why would you have to buy the liability? The loan is to ACL, not the owners of ACL.

You would simply buy ACL and continue to make the repayments.

Yes. You've bought a liability (simply continue making payments).

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