Sat, 03 Aug 2013 | ADMINISTRATION
Coventry City Football Club (CCFC Ltd) has gone into liquidation after the owners of its homeground, the Ricoh Stadium, Arena Coventry Limited (ACL), rejected a Corporate Voluntary Agreement.
A statement from the football club said: “It is with great regret that a proposed Company Voluntary Agreement (CVA) has been rejected by Arena Coventry Limited (ACL). It means CCFC Ltd is likely to be put into liquidation which is expected to result in a points penalty for the club going into the new season.”
The club is holding meetings with the Football League to work out the next best move but it will most likely face a 15 point deduction in the next season. Despite this, the team is still set to start the League One season this weekend at Crawley.
ACL reportedly rejected the CVA as a result of concerns over the club's agreed groundshare at Northampton's Sixfields Stadium for the next three seasons. CCFC took the groundshare due to a row over rent with ACL.
ACL's statement read: “This decision [to reject the CVA] was based on ACL's twin aims. First, to keep Coventry City Football Club playing in Coventry; and second, to ensure that Coventry City Football Club is financially viable for the next few years and beyond.”
It added that the CVA put forward by the club's joint administrator, Paul Appleton, “does not address these obvious concerns”.
Mr Appleton responded in a comment reported by the BBC: "We do not understand the comments being made by ACL with regard to the ability to put forward new proposals. The proposals ACL required simply did not comply with the law."
The club was first pushed into administration in March as a result of its debts to ACL. ACL, which owns the team's ground, Ricoh Arena, received £1.2 million a year in rent from the club, but Coventry City only received a limited share of catering and parking revenues on match days. By the time the debts reached £1.3 million, the club could not avoid administration, despite offers of reduced rent on the Ricoh from ACL and the Northampton groundshare deal was agreed as a temporary alternative.
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