Tim Fisher, CEO of the Sky Blues stadium, now admits that Coventry has prepared itself from a possible threat that could be coming in the form of an administration order and they are now working along with their advisers to reduce the damage that could be done to the football club. His statement comes after Arena Coventry Limited (ACL) which manages the Ricoh Arena said that it created an application sent to the London High Court to try and get them to have an administration order used against the club.
Sky Blues currently owe £1.3 million to ACL because of various unpaid debts over the past year. The ongoing dispute has seen the club’s bank accounts closed and other lines of credit shut down. In the mean time, City was also placed under an embargo after they failed to file an annual account of their finances in the required time frame. Sisu, owners of Coventry, are contesting the terms of their lease, but League One has the ability to impose a 10-point reduction from the Football League if the club goes under administration.
Coventry right now is set to go in front of the High Court later in the month and has been responding Wednesday to the recent development. Fisher told the press that this is one but many possibilities that could have befallen on the club, and they prepared for this eventuality since the ACL ended negotiations last semester. They are consulting with advisers to find out what possibilities they have to contest this order. The result may see this club have some big difficulties to receive funding and continue playing.
ACL manages the stadium on behalf of the Coventry City Council along with Alan Edward Higgs Charity, and they said that talks had collapsed about the ongoing rent issues without reaching an agreement. This latest action will see the High Court take a decision during the next few weeks whether this club can keep going in the series.