Just how culpable are Coventry Council in all this? (1 Viewer)

[kapowaz]

So now the council are denying that they've got any meetings with SISU lined up — worrying in itself, but there's an interesting tidbit in there, with Cllr John Mutton saying the following:

While we've always said that we're prepared to listen to Sisu and their wish to have a stake in the Ricoh Arena, we've always made it clear that they must have a sustainable and robust business strategy plan before they talk to us - this has been absent so far.

Wait a second — having a sustainable and robust business strategy is a prerequisite to having a conversation about SISU acquiring the Arena? But what if owning the Arena is the ‘sustainable and robust business strategy’? If this has been the council's stance all along then it might just be that they're actually a significant obstacle to the club getting back on its feet.

 

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[rob9872]

I think that you're being a little unfair there. The council stepped in and saved us when we begged to sell them HR early and they are rightly protecting their investment for their customers (residents) in the City who are not all City fans and don't have it at the heart of their interests. The club have failed and imo the council owe us or them nothing

 

[kapowaz]

I can't disagree with any particular point there. However, the site was wasteland before the stadium was built, and the council was paid a large chunk of money for it before a brick was laid. I also find it hard to believe that the council would have stepped in simply out of the goodness of their hearts — as you say they have the council tax-paying resident's interests to consider, so they will have had to look at it and decide if it would be a net profit or not.

But that's by the by. The question right now is: are the council effectively putting SISU (or indeed any other future owner of the club) in a catch 22 by insisting that they have to have a sustainable business before they'll listen to offers for the stadium? Would they even be exposing themselves to any risk if they didn't do this? If they get back however much they invested in it originally, why wouldn't they listen to offers? My understanding is that the Arena is now (after several years of making a loss) a very profitable operation in its own right thanks to the casino, concerts, non-football sports events (the 2012 Olympics!) and the like. No matter who owned it, it would remain a valuable asset and would continue to be successful independent of the success of the club.

 

[hackneyfox]

The council didn't ask for sisu to be a sustainable business, they asked for them to have a sustainable business strategy.

Two completely different things.

Sisu are a sustainable business, it is their strategy with co* that seems unsustainable.

 

[honestmike]

To be honest at the moment I have to admit that I think the stadium is better off in the councils control, If Sisu get their hands on the arena I am not convinced that they won't mortgage it to the max to get their money back and then we have a situation like we have with Ryton now.

 

[skyblu3sk]

Does any football club have a sustainable business plan?

 

[sky_blue_up_north]

Does any football club have a sustainable business plan?

Good point, I can only think of Arsenal who seem to make a decent profit, even Man U are up to their eyes in debt

 

[hackneyfox]

That wasn't due to a business plan though.

 

[sky_blue_up_north]

No but a certain amount of good planning, which most clubs don't have.. the bubble will burst one day and the fall out from that will be incredible with some of the biggest clubs going to the wall

 

[hackneyfox]

I meant Man U aren't in debt due to a business strategy.
Unless you blame having shares.

Man U were well in the black until Glazer turned up.

 

[kg82]

I've also been thinking and I was wondering why Dulieu would say he had a meeting with the council set up when he didn't? The only thing I thought was maybe he was trying to call their bluff. Say he had been in contact with the council about a meeting and they were dragging their feet, maybe he said it publicly to give them a kick up the backside. Very risky but it's not as if our position is solid and no need for risks? Just an idea.

 

[coundonskyblue]

I know quite a few of the councillors in Coventry, and if I'm being honest I can't stand John Mutton so I have no reason to stand up for him. But, I know that he is a big city fan so I very much doubt he would try and stitch the club up.

I imagine the Council also suspect Sisu of what some on here suggested. Buy the Ricoh, put a massive mortgage on it, take the money out and get rid of the club.

 

[RedSalmon]

The thought of SISU getting their hands on the Arena sends a shiver down my back!! Although we don't own it, my understanding is that, we do have an option to buy half of it (the Alan Higgs half) at a price that is determined by several factors. As I recall these factors are related to interest rates, land values and the length of time it takes for us to buy it. When this agreement was set up it was done in a way that by using these factors to determine the price no one could either drive the price up or down as it would already be determined. Anyone else remember hearing this at the time?
The other half that is owned by the council is a completely different matter and will be determined by how much the council feel is a fair price and how much SISU can afford. Given that I have heard that the council are making a nice little income from there half of the Arena, they may not be too keen to sell, and if they do may drive a hard bargain. Who could blame them after all? They are not here to subsidise the football club, and especially the way SISU have presented themselves one way and another I wouldn't be suprised if the council put plenty of obsticles in their way if they are serious about buying the councils share.
If, and I pray it never happens, SISU do get complete ownwership and control of the Arena could anyone here see them running it with the interests of the football club at heart given their track record? At the first opportunity they would seperate CCFC from the Arena, legally, and then sell the Arena as a going concern for a lot more than they bought it, meanwhile allowing CCFC to wither and die due to lack of revenue streams.
Am I being too cynical?

 

[honestmike]

Spot on me thinks RedSalmon spot on

 

[hitmanhearns]

No, you´re not cynical you are being realistic-SISU has taken off their mask little by little through these years, and what we see today is the face of sheer greed. The board today has basically no local ties it´s there for profit and profit only.
Ithink u are correct in your assesment, unfortunatley.

 

[The CableGuy]

Am I being too cynical?

No, not at all. I can see the events described in your post actually happening.

And I can't blame the Council, without them we would have been ground-sharing at Brum or Leicester. It was City's (or rather the board's) decision to sell HR well before our new home was built.

 

[sky_blue_up_north]

That is point I'm making.... would you pay £1 billion for a footy club, unlikely they would go out business, but just goes to show how crazy football is