AFCCOVENTRY
Well-Known Member
Sisu appeal judicial review decision
Coventry City’s owners have appealed against a judge’s rejection of a judicial review over the council’s £14million taxpayer bailout of the Ricoh Arena.
The news comes as some Coventry City fans were due to protest today at the Football League offices in London against its approval for ‘home’ games to be played at Northampton Town.
Many fans hostile to the club’s owners were further incensed by a Football League letter released last night by Coventry North East MP Bob Ainsworth.
The High Court in London has confirmed companies related to Sky Blues owners Sisu/Otium have appealed against last week’s verdict by Mr Justice Males.
He ruled the application - signed by Sisu boss Joy Seppala and in the name of Arvo Master Fund, Sky Blue Sports and Leisure Ltd and Coventry City Football Club (Holdings) Limited - should not proceed to a full judicial review.
The Sisu companies had alleged the council’s purchase of part-council-owned Arena Coventry Limited’s mortgage debt in January for £14m was against European 'state aid' laws.
It accused the council of creating "unfair competition", and the council and ACL of seeking to unlawfully "wrest control" of the club away from Sisu companies.
But the judge ruled the council had acted to prevent insolvency of ACL - after Sisu withheld more than £1m in rent payments for using the stadium.
He concluded rent non-payment was "a means of exerting pressure in their commercial negotiations" with the council and ACL over Ricoh rent, revenues and ownership.
The High Court today confirmed to the Telegraph the Sisu companies have lodged "renewal forms" to renew the application for a judicial review.
It is effectively an appeal - which now triggers an oral hearing in which both sides will put their case to a High Court judge.
The administrative court at the Royal Courts of Justice in London said no date had yet been set.
A Coventry City Council spokesperson said: “We have always been confident we had a strong case, and we were delighted the high court judge Mr Justice Males rejected the application for Judicial Review at the earliest possible opportunity.
"However we’re not particularly surprised the claimants have chosen to renew their application at an oral hearing. Our position remains that we have acted lawfully in all respects and we will defend the claim as strongly as we did originally."
Meanwhile, fans group the Sky Blue Trust was urging fans to join the protest in London at 4pm today - against the Northampton groundshare and the League’s decision to transfer the “golden share” right to play in the League to Otium.
The Football League’s letter sent to Coventry North east Labour MP Bob Ainsworth defended its position to allow a groundshare while a new stadium is built in the Coventry area - while stating it will continue to urge the Sky Blues to return to Coventry.
In the letter, the League appears to blame ACL for this month’s ten-point deduction from the Sky Blues Division One campaign, after ACL had refused to sign a deal proposed by administrator Paul Appleton to bring CCFC Ltd out of administration - called a Company Voluntary Arrangement (CVA).
It also reveals for the first time that ACL can still expect a £590,000 return on the Sky Blues rent non-payment and cancellation of the Ricoh lease - even though CCFC Ltd is now heading for liquidation.
Mr Appleton’s proposal had been that ACL would receive only about £14,000 under liquidation if it rejected the CVA.
The letter from the League’s chief operating officer Andy Williamson, dated August 5, states: “...In order to keep the club alive, the Football League board agreed to offer the Otium Entertainment Group the club’s share in the Football League, providing it accepted various entry conditions, including a commitment that it meet the financial offer made to creditors under the proposed CVA.”
It states the League, in considering whether to allow the Northampton groundshare, was placed in an “unenviable position as a consequence of a commercial dispute between the club and its landlord.”
It adds: “The League understands this situation has caused great distress for many supporters of Coventry City.
“...We will now continue with our endeavours to get the club playing in its home city at the earliest opportunity, though this will be against a backdrop of the club having had ten points deducted for failing to achieve a CVA due to the actions of its former landlord.
“For the record, it is categorically not the case that the Football League has failed to apply its own rules as the Board retains the right to permit clubs to move ground at its discretion.”
The letter states, in the League applying its insolvency policy, it has to ensure the process is fair to all 72 clubs in the League, and their supporters.
In March, ACL filed for the football club’s administration in the High Court amid interest from takeover bidders who might also have become at least joint owners in the stadium.
That prompted the club to put CCFC Ltd in administration - resulting in ten points also being lost from lost season’s promotion push.
Coventry City’s owners have appealed against a judge’s rejection of a judicial review over the council’s £14million taxpayer bailout of the Ricoh Arena.
The news comes as some Coventry City fans were due to protest today at the Football League offices in London against its approval for ‘home’ games to be played at Northampton Town.
Many fans hostile to the club’s owners were further incensed by a Football League letter released last night by Coventry North East MP Bob Ainsworth.
The High Court in London has confirmed companies related to Sky Blues owners Sisu/Otium have appealed against last week’s verdict by Mr Justice Males.
He ruled the application - signed by Sisu boss Joy Seppala and in the name of Arvo Master Fund, Sky Blue Sports and Leisure Ltd and Coventry City Football Club (Holdings) Limited - should not proceed to a full judicial review.
The Sisu companies had alleged the council’s purchase of part-council-owned Arena Coventry Limited’s mortgage debt in January for £14m was against European 'state aid' laws.
It accused the council of creating "unfair competition", and the council and ACL of seeking to unlawfully "wrest control" of the club away from Sisu companies.
But the judge ruled the council had acted to prevent insolvency of ACL - after Sisu withheld more than £1m in rent payments for using the stadium.
He concluded rent non-payment was "a means of exerting pressure in their commercial negotiations" with the council and ACL over Ricoh rent, revenues and ownership.
The High Court today confirmed to the Telegraph the Sisu companies have lodged "renewal forms" to renew the application for a judicial review.
It is effectively an appeal - which now triggers an oral hearing in which both sides will put their case to a High Court judge.
The administrative court at the Royal Courts of Justice in London said no date had yet been set.
A Coventry City Council spokesperson said: “We have always been confident we had a strong case, and we were delighted the high court judge Mr Justice Males rejected the application for Judicial Review at the earliest possible opportunity.
"However we’re not particularly surprised the claimants have chosen to renew their application at an oral hearing. Our position remains that we have acted lawfully in all respects and we will defend the claim as strongly as we did originally."
Meanwhile, fans group the Sky Blue Trust was urging fans to join the protest in London at 4pm today - against the Northampton groundshare and the League’s decision to transfer the “golden share” right to play in the League to Otium.
The Football League’s letter sent to Coventry North east Labour MP Bob Ainsworth defended its position to allow a groundshare while a new stadium is built in the Coventry area - while stating it will continue to urge the Sky Blues to return to Coventry.
In the letter, the League appears to blame ACL for this month’s ten-point deduction from the Sky Blues Division One campaign, after ACL had refused to sign a deal proposed by administrator Paul Appleton to bring CCFC Ltd out of administration - called a Company Voluntary Arrangement (CVA).
It also reveals for the first time that ACL can still expect a £590,000 return on the Sky Blues rent non-payment and cancellation of the Ricoh lease - even though CCFC Ltd is now heading for liquidation.
Mr Appleton’s proposal had been that ACL would receive only about £14,000 under liquidation if it rejected the CVA.
The letter from the League’s chief operating officer Andy Williamson, dated August 5, states: “...In order to keep the club alive, the Football League board agreed to offer the Otium Entertainment Group the club’s share in the Football League, providing it accepted various entry conditions, including a commitment that it meet the financial offer made to creditors under the proposed CVA.”
It states the League, in considering whether to allow the Northampton groundshare, was placed in an “unenviable position as a consequence of a commercial dispute between the club and its landlord.”
It adds: “The League understands this situation has caused great distress for many supporters of Coventry City.
“...We will now continue with our endeavours to get the club playing in its home city at the earliest opportunity, though this will be against a backdrop of the club having had ten points deducted for failing to achieve a CVA due to the actions of its former landlord.
“For the record, it is categorically not the case that the Football League has failed to apply its own rules as the Board retains the right to permit clubs to move ground at its discretion.”
The letter states, in the League applying its insolvency policy, it has to ensure the process is fair to all 72 clubs in the League, and their supporters.
In March, ACL filed for the football club’s administration in the High Court amid interest from takeover bidders who might also have become at least joint owners in the stadium.
That prompted the club to put CCFC Ltd in administration - resulting in ten points also being lost from lost season’s promotion push.
