council may lower rent? (1 Viewer)

[skybluegod]

council say they may agree to lower rent but are a long way off.
http://www.coventrytelegraph.net/co...ry-city-s-rent-at-ricoh-arena-92746-31355108/

 

---

[Tad]

They shouldn't do anything. It's the clubs current and old owners fault for leaving the club in such a mess. The council shouldn't have to suffer for poor business. If it means moving to the Rugby ground or what not, then so be it.

 

[Otis]

Bit concerned that Mutton has said they would put the rent up if we were in the Premier!

 

[skyblueman]

Interesting read skybluegod - we're having a good old debate on this on another thread - key bit for me here is the lack of information on business strategy from SISU if that's correct

 

[Grendel]

They shouldn't do anything. It's the clubs current and old owners fault for leaving the club in such a mess. The council shouldn't have to suffer for poor business. If it means moving to the Rugby ground or what not, then so be it.

Unbelievable. No wonder the club is in a mess with "supporters" who want that.

 

[ccfcway]

Coun Mutton said the reserves in the bank account would soon dry if the Sky Blues continued not to put monthly payments in at the end of this month.

then what ?.

SUrely they missed of a sentance which would be what if that happens ?

 

[torchomatic]

I think they should double the rent so the club has to fold. Ha! That would be brilliant. SISU wouldn't be laughing then, would they? :thinking about:

 

[stupot07]

They shouldn't do anything. It's the clubs current and old owners fault for leaving the club in such a mess. The council shouldn't have to suffer for poor business. If it means moving to the Rugby ground or what not, then so be it.

The council won't suffer as they don't take anything out of ACL. As for moving to the rugby club, that would mean that ACL won't get any rent, or any of the other revenues they receive on match days - catering, parking, etc. some rent is better than no rent

 

[Grendel]

I think they should double the rent so the club has to fold. Ha! That would be brilliant. SISU wouldn't be laughing then, would they? :thinking about:

Perhaps we should treble it then we can all go and watch the team at the Memorial Park. That'll show 'em. There are no seats there though so I don't see that fat oaf Mutton standing to watch the game.

 

[ccfcway]

so, where we are today is that the council are "some way off" lowering the rent, yet we are mearly weeks away from the ESCROW running dry.

Is there any danger of us not bein able to play at the Ricoh if we havent paid the rent in Aug ?

 

[Grendel]

so, where we are today is that the council are "some way off" lowering the rent, yet we are mearly weeks away from the ESCROW running dry.

Is there any danger of us not bein able to play at the Ricoh if we havent paid the rent in Aug ?

In theory yes but I would love to see them try. Supporters should be backing the club to get the rent lowered not backing the Council. What a joke.

 

[sylus]

. god.how boring!! all the best.

 

[WillieStanley]

Bit concerned that Mutton has said they would put the rent up if we were in the Premier!

I know. I thought the rent was agreed at that price on the assumption we would make a swift return to the PL. Surely the council can see that £1.2m isn't sustainable even at Championship level.

I'm not sure there is any intention to lower the rent. He is just trying to come out of this smelling of roses. "There's no decrease, but it's not our fault"

 

[Otis]

I know. I thought the rent was agreed at that price on the assumption we would make a swift return to the PL. Surely the council can see that £1.2m isn't sustainable even at Championship level.

I'm not sure there is any intention to lower the rent. He is just trying to come out of this smelling of roses. "There's no decrease, but it's not our fault"

Yep. Previously he was saying the rent was 1.2 m or whatever it is no matter what division we are in. Now he's talking about upping the rent if we got to the Premier.

1.2m not enough then? :facepalm:

 

[ccfcway]

I know. I thought the rent was agreed at that price on the assumption we would make a swift return to the PL. Surely the council can see that £1.2m isn't sustainable even at Championship level.

I'm not sure there is any intention to lower the rent. He is just trying to come out of this smelling of roses. "There's no decrease, but it's not our fault"

To be fair, it isnt their fault.

They have met SISU and are looking to understand if its going to help redcuing the rent.

Losing 500k a month or 400k makes no difference at all.

I am sure the council have said "show us how you can get to losing 50k a month whilst maintianing a competitive squad and we will reduce the rent by 500k a year to help you"

 

[torchomatic]

Of course it does! You would save £1.2M a year. Coincidently, the cost of the rent.

Losing 500k a month or 400k makes no difference at all.

 

[Tad]

Unbelievable. No wonder the club is in a mess with "supporters" who want that.

Pardon me for living in the real world. The money these club don't pay in tax etc is diabolical. It's money that SHOULD be being used on hospitals, police etc. why should we all suffer from one poorly ran football club?

 

[valiant15]

How many people on here that want the rent reduced pay council tax to coventry city council?

 

[ccfcway]

Of course it does! You would save £1.2M a year. Coincidently, the cost of the rent.

eh ?. Hows it a coincidence ?

the club are losing 500k a month and if you give them the rent free, it still means they are losing 400k. Thats where the figure 400k comes from, its no coincidence.

Council are right in saying reducing rent just means there is SLIGHTLY less money in the black hole and by losing 400k a month (assuming they didnt pay rent) administration cant be too far away, so the council want to see SISU's plan to get towards breaking even, without mearly slashing the playing side of the FOOTBALL club.

reduced or FREE rent would hardly touch the sides in terms of solving our financial problems

 

[skyblueman]

Rent aside for a moment - would someone like to enlighten me on how the club is going to mange to run on a break-even basis going forward because I can't see how from where we are now??? Only things I can see happening are selling anyone we can to cover the losses short term and then that?

 

[WillieStanley]

To be fair, it isnt their fault.

They have met SISU and are looking to understand if its going to help redcuing the rent.

Losing 500k a month or 400k makes no difference at all.

I am sure the council have said "show us how you can get to losing 50k a month whilst maintianing a competitive squad and we will reduce the rent by 500k a year to help you"

Due to the public perception of SISU, ACL/Mutton can make things as difficult as they like for CCFC and people will still keep the blame firmly at SISU's door. The power is with them. Muttin is exploiting this even more by talking of an increase. Whilst I'm not saying SISU aren't playing games, Mutton definately isn't straight down the line with this. His statements are as illusive, arrongant and double edged as every one of Fishers.

The fact is, regardless of SISUs failures last season, despite KD sitting on the bench and the lack of investment, selling of our best players and lack of communication, the rent we have paid since 2005 has been well over the market value and suicidal at Championship level.

People talk of having the people of Coventry's interest as focus. Well our local economy would be miles worse off without a football team and miles better off if it were in the Prem. Whether you like football, support Coventry or not.

 

[italiahorse]

Yep. Previously he was saying the rent was 1.2 m or whatever it is no matter what division we are in. Now he's talking about upping the rent if we got to the Premier.

1.2m not enough then? :facepalm:

I guess its ok if the agreement is that they will lower the rent in Div 1 as long as they can get back the loss of income in the premiership.

 

[italiahorse]

Pardon me for living in the real world. The money these club don't pay in tax etc is diabolical. It's money that SHOULD be being used on hospitals, police etc. why should we all suffer from one poorly ran football club?

Whose "we" ?
This guy is not a CCFC fan.

 

[Godiva]

The rent shouldn't be directly dependant on which division we are playing in, but a reflection of the income on matchdays.

 

[skyblueman]

The rent shouldn't be directly dependant on which division we are playing in, but a reflection of the income on matchdays.

In an ideal world yes - actually both of these options would work ok - trouble is the landlord has no influence over this at all and is at the mercy of the clubs management - can't see how this is remotely fair - it's not as if the ground is any better or worse depending on what league the clubs in

 

[ccfcdan]

I hope they lower the rent, that way we will be given more funds to use in player transfers

 

[Grendel]

In an ideal world yes - actually both of these options would work ok - trouble is the landlord has no influence over this at all and is at the mercy of the clubs management - can't see how this is remotely fair - it's not as if the ground is any better or worse depending on what league the clubs in

Perhaps SISU should look at other legal disputes and regarding this. Ipswich is an example;

A £650,000 rent dispute between Ipswich Town Football Club and the borough council has been settled.

The club faced the bill after an independent assessor ruled rent charges at the council-owned Portman Road site should rise from £15,000 a year to £110,000 a year.

The two sides had been locked in dispute after it was decided the increase should be back-dated to 2004.

Now both the club and council have announced the matter has been resolved.

A football club spokesman said: "We are pleased to see the conclusion of this matter."

'Sensible compromise'
The money will be paid over a six-year period, rather than the four-year timescale previously suggested.

Now tell me the rate we pay is fair.

 

[Godiva]

The rent shouldn't be directly dependant on which division we are playing in, but a reflection of the income on matchdays.

In an ideal world yes - actually both of these options would work ok - trouble is the landlord has no influence over this at all and is at the mercy of the clubs management - can't see how this is remotely fair - it's not as if the ground is any better or worse depending on what league the clubs in

True. It's not fair.
But a few points needed to be addressed as well:
1) The club has no realistic alternative place to play. There's no competition for the rent, so it's not like we can either pay or relocate. That's not fair either.
2) The interest rates have come down since the financial crunch sat in. I am not sure how it works in the ACL world, but I think it should reflect in the cost to own the stadium.

 

[skyblueman]

Good point godiva on the stadium side - I am sure the council would block any attempt to have another ground built or added to to accomodate the club - the Interest rate on the loans for the stadium could be whole different world though as I expect they may not be simply linked to standard Int rates -

 

[wingy]

Man City pay £3m. per annum to rent the Ethiad ,their Income let alone the Bankrolling is probably ten times ours.

 

[SkyBlue_Bear83]

Of course it does! You would save £1.2M a year. Coincidently, the cost of the rent.

Think you are missing the point made, losing 400k a month is no more sustainable in the long term than losing 500k a month I think was the point. We would still be screwed

 

[Grendel]

Think you are missing the point made, losing 400k a month is no more sustainable in the long term than losing 500k a month I think was the point. We would still be screwed

Well if I was running a loss making concern and I found a way of immediately reducing the cost by 20% I would see that as a step in the right direction.

 

[SkyBlue_Bear83]

Well if I was running a loss making concern and I found a way of immediately reducing the cost by 20% I would see that as a step in the right direction.

Yea exactly so the council are saying they will only agree to it if the owners can find other ways of covering the other losses without damaging the squad further as ccfcway said

I am sure the council have said "show us how you can get to losing 50k a month whilst maintianing a competitive squad and we will reduce the rent by 500k a year to help you"

 

[skyblueman]

Yea exactly so the council are saying they will only agree to it if the owners can find other ways of covering the other losses without damaging the squad further as ccfcway said

Which they can't by normal operating and obviously won't commit to... stalemate

 

[Grendel]

Yea exactly so the council are saying they will only agree to it if the owners can find other ways of covering the other losses without damaging the squad further as ccfcway said

SISU should look at taking action I think the rate charged is 10 times over the market rate and they could try and make the contract void. They could try and get back payments already made. Even the threat should make Mutton scurry to his bunker.