dongonzalos
Well-Known Member
Judge delivers brief verdict at High Court in Birmingham and refused permission for further action
Ricoh Arena
Sisu has lost its High Court battle with Coventry City Council, it was announced today.
In a 60-second hearing this morning at Birmingham, Mr Justice Hickinbottom said the council had successfully defended the claim brought by the owners of Coventry City FC
Referring to a 100 page judgment, the Judge said: ''This claim fails formally on grounds one and three of the judgment and I refuse permission for further action on ground two of the judgment.''
The verdict was delivered today following a judicial review at Birmingham High Court earlier this month, which looked at a £14.4million council loan to ACL - the operators of the Ricoh Arena.
Coventry City Football Club owners Sisu claimed the loan amounted to unlawful state aid and that the council had made an irrational decision when agreeing the deal.
The council argued it had acted to protect its investment in ACL after the football club began withholding its rent payments.
Their lawyers claimed that the judicial review had been pursued as part of a Sisu plan to 'distress' ACL - and therefore ultimately gain control of the Ricoh Arena.
A statement released by Coventry City said: "The Judgement by Hickinbottom J, that the Council's (CCC) decision to provide a £14.4m 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 per cent, 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. "
Ricoh Arena
Sisu has lost its High Court battle with Coventry City Council, it was announced today.
In a 60-second hearing this morning at Birmingham, Mr Justice Hickinbottom said the council had successfully defended the claim brought by the owners of Coventry City FC
Referring to a 100 page judgment, the Judge said: ''This claim fails formally on grounds one and three of the judgment and I refuse permission for further action on ground two of the judgment.''
The verdict was delivered today following a judicial review at Birmingham High Court earlier this month, which looked at a £14.4million council loan to ACL - the operators of the Ricoh Arena.
Coventry City Football Club owners Sisu claimed the loan amounted to unlawful state aid and that the council had made an irrational decision when agreeing the deal.
The council argued it had acted to protect its investment in ACL after the football club began withholding its rent payments.
Their lawyers claimed that the judicial review had been pursued as part of a Sisu plan to 'distress' ACL - and therefore ultimately gain control of the Ricoh Arena.
A statement released by Coventry City said: "The Judgement by Hickinbottom J, that the Council's (CCC) decision to provide a £14.4m 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 per cent, 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. "
