The CableGuy
Well-Known Member
http://www.coventrytelegraph.net/co...-for-ricoh-arena-says-council-92746-30819657/
HOPES of a financial lifeline for the relegated Sky Blues through lower rent payments for the council-owned Ricoh Arena appear in tatters today.
Coventry City Council leader Coun John Mutton, speaking to the Telegraph, poured cold water on Sky Blues’ chief executive Tim Fisher’s hopes for a renegotiation of rent to management company Arena Coventry Limited (ACL) – which is jointly owned by the council and Alan Higgs Charity, and has a long lease on the council-owned stadium site.
The council’s leader also indicated any hope of the deficit-ridden Sky Blues buying a stake in the stadium and its profit-making commercial activities remained extremely unlikely.
Mr Fisher – speaking on Saturday evening after Coventry City Football Club suffered a further multi-million pound financial blow by being relegated to the third tier of English football for the first time in 48 years – confirmed the club had not paid its £100,000 rent this month.
In outlining a draft financial plan to “bounce back” to the Championship to be put to the club’s owners, London-based private equity firm Sisu, Mr Fisher added: “As part of our planning and of understanding what our finances are, the rent is not currently affordable. That’s a fact.
“However, the discussions we’ve had with ACL, the council and Higgs Charity have been constructive. I’m hoping there will be some flexibility there.”
But Labour council leader Mutton, a Sky Blues fan of 57 years, renewed his public attack on unpopular owners Sisu, and said the council would expect the full rent to be paid.
He said: “There have been talks, not negotiations, which are nothing to do with the council. It’s been an ACL thing. I was with the chairman of ACL David Allvey on Saturday. I’m advised that while work is still ongoing to enable ACL to make more profit which may be able to benefit the football club, there has been no discussion about decreasing rent.
“There is a legally binding contract and that would be expected to be paid.
“If for certain reasons there is future negotiation, that would be a decision for the full council to take as a shareholder as to whether we would be prepared to accept that.
“At the moment, there seems to be more threats than negotiation – the threat to put the club into liquidation. It really is time for Sisu to realise Coventry doesn’t bow at the knee to threats.”
Asked about any prospect for future negotiations about the football club buying into the stadium, he said: “It’s public money that went into building the Ricoh Arena, and public money for us to remain a 50per cent shareholder.
“It’s not for the public purse to subsidise organisations like SISU."
HOPES of a financial lifeline for the relegated Sky Blues through lower rent payments for the council-owned Ricoh Arena appear in tatters today.
Coventry City Council leader Coun John Mutton, speaking to the Telegraph, poured cold water on Sky Blues’ chief executive Tim Fisher’s hopes for a renegotiation of rent to management company Arena Coventry Limited (ACL) – which is jointly owned by the council and Alan Higgs Charity, and has a long lease on the council-owned stadium site.
The council’s leader also indicated any hope of the deficit-ridden Sky Blues buying a stake in the stadium and its profit-making commercial activities remained extremely unlikely.
Mr Fisher – speaking on Saturday evening after Coventry City Football Club suffered a further multi-million pound financial blow by being relegated to the third tier of English football for the first time in 48 years – confirmed the club had not paid its £100,000 rent this month.
In outlining a draft financial plan to “bounce back” to the Championship to be put to the club’s owners, London-based private equity firm Sisu, Mr Fisher added: “As part of our planning and of understanding what our finances are, the rent is not currently affordable. That’s a fact.
“However, the discussions we’ve had with ACL, the council and Higgs Charity have been constructive. I’m hoping there will be some flexibility there.”
But Labour council leader Mutton, a Sky Blues fan of 57 years, renewed his public attack on unpopular owners Sisu, and said the council would expect the full rent to be paid.
He said: “There have been talks, not negotiations, which are nothing to do with the council. It’s been an ACL thing. I was with the chairman of ACL David Allvey on Saturday. I’m advised that while work is still ongoing to enable ACL to make more profit which may be able to benefit the football club, there has been no discussion about decreasing rent.
“There is a legally binding contract and that would be expected to be paid.
“If for certain reasons there is future negotiation, that would be a decision for the full council to take as a shareholder as to whether we would be prepared to accept that.
“At the moment, there seems to be more threats than negotiation – the threat to put the club into liquidation. It really is time for Sisu to realise Coventry doesn’t bow at the knee to threats.”
Asked about any prospect for future negotiations about the football club buying into the stadium, he said: “It’s public money that went into building the Ricoh Arena, and public money for us to remain a 50per cent shareholder.
“It’s not for the public purse to subsidise organisations like SISU."
