Good news for Coventry City

[chinapig]

Delighted for their fans:

https://www.theguardian.com/football/2022/nov/16/coventry-sale-agreed-that-would-leave-club-free-of-debt

[GlastonburyRed]

They detest SISU so they will be happy, I think they were worried about Mike Ashley as well nearly as much.

[Mr Popodopolous]

Yes looks like good news for them at last and if it goes through, he will be inheriting a club in a good position on and off the pitch.

[slartibartfast]

1 hour ago, Mr Popodopolous said:

Yes looks like good news for them at last and if it goes through, he will be inheriting a club in a good position on and off the pitch.

So, an other club in a better position than us ! yippee 

[Mr Popodopolous]

1 hour ago, slartibartfast said:

So, an other club in a better position than us ! yippee 

In financial terms, think of them a bit like Newcastle under Ashley.

Run reasonably well albeit not profitable unlike Newcastle, not investing much cash or much if any equity.

New owner can then should they so choose, if they can afford put the accelerator down for a while. Bit like Hull too, but better side than Hull pre takeover.

In short, if it goes through I fear so.

Of course not guaranteed. He could blow their financials within 18 months to 2 years, decide he is the man and wants his own man!!

Sack Robins and appoint some 'big name', or some manager with faded glories or relative novice! Or remortgage the stadium if he gains ownership- or anything really...

Edited November 17, 2022 by Mr Popodopolous

[Eddie Hitler]

This will be a massive relief for their fans.  Good news.

[Northern Red]

 

[Mr Popodopolous]

Three ways that could go..

Could put him in a significantly positive position to buy Coventry...bet it cost markedly less than some of the 'fair value' sale and leasebacks!!

£17m for that...vs £81.1m for Pride Park, £70m was is for the Bet365, £60m for Hillsborough and £56.7m for Villa Park!! St Andrews at £22m looks alright as did Reading given land values in South East but still more than Ricoh in both cases. Distressed sale too, I get that!

Or he could push up the rent. Medium to long term depending on current arrangements

Or, maybe a new big Sports Direct regional hub.

Edited November 17, 2022 by Mr Popodopolous

[Harry]

The article suggests that the purchase of the club means it leaves it debt free. 
Does this mean that the purchaser is paying off the money owed to HMRC or does it mean the debt to HMRC is written off? 
Hopefully the former……

[22A]

I thought you meant Lady G was making a comeback! 

[Mr Popodopolous]

8 hours ago, Harry said:

The article suggests that the purchase of the club means it leaves it debt free. 
Does this mean that the purchaser is paying off the money owed to HMRC or does it mean the debt to HMRC is written off? 
Hopefully the former……

I'm sure that it's the former, it's a relatively small debt anyway I believe and if not for their postponed games and the impact on cash flow- all 4 were at home in a month to 6 week period-the issue wouldn't have arisen I expect.

[W-S-M Seagull]

17 hours ago, Mr Popodopolous said:

Three ways that could go..

Could put him in a significantly positive position to buy Coventry...bet it cost markedly less than some of the 'fair value' sale and leasebacks!!

£17m for that...vs £81.1m for Pride Park, £70m was is for the Bet365, £60m for Hillsborough and £56.7m for Villa Park!! St Andrews at £22m looks alright as did Reading given land values in South East but still more than Ricoh in both cases. Distressed sale too, I get that!

Or he could push up the rent. Medium to long term depending on current arrangements

Or, maybe a new big Sports Direct regional hub.

I think your last point is the most likely outcome. 

Simon Jordan looked at buying the club and previously made some cryptic comments that the council wanted the arena developed into something else. 

Yesterday he elaborated on those previous comments. The council were very keen for Ashley to buy the arena...

People look at Ashley's previous ownership of a football club and assume that means he wants CCFC. They overlook what he actually made his money in. 

From what I heard, the actual stadium bowl brings in very little revenue to the stadium company, Coventry only pay a modest rent. The stadium bowl requires 15 million of work to be done on it. 

They recieved a few bids of 30 million but upon due diligence the bids were reduced down to about 10 mil. Probably cos of the work that needs to be done to it. 

I really can't see how it would be profitable to keep the stadium bowl in the long term. Huge running costs with only a small return. 

This is Mike Ashley. 

We all know Coventry refused to pay 1.2 million rent. So more likely to be in the 500k bracket. If Ashley has to spend 15 million to just keep the bowl operating as a sports venue. Then that's 26 years for him to earn just that back and that's on the basis the 500k is profit, which it's not. I just can't see it. 

I'm no financial expert but if someone buys something for 17 million and then knocks it down and builds something else that is then worth a lot more than 17 million then on the books that's a profit right? 

[W-S-M Seagull]

9 hours ago, Mr Popodopolous said:

I'm sure that it's the former, it's a relatively small debt anyway I believe and if not for their postponed games and the impact on cash flow- all 4 were at home in a month to 6 week period-the issue wouldn't have arisen I expect.

I believe Coventry are extremely close to administration. They had to sell Hyam on the cheap to generate cash flow. 

This new owner yesterday said that SISU do not have the funds available to plug any gaps. 

Something just doesn't seem right with this new owner. He doesn't appear to have the funds to run a Championship club. 

When he asked the court to delay the sale of the arena the judge said his bid "lacked any substance" that alone would concern me if this was us. There fans just appear to be pleased to be getting rid of SISU so are not really questioning if this guy is the real deal. 

I'd be sceptical about the debt free claims. SISU said that when they took over. The debt isn't actual debt from real money. It's debt from interest etc. It will just be moved around on paper. 

In an interview after court yesterday he said  - “The deal is done,” “As long as I am approved, the deal is done. It’s clean.

Just something about that wouldn't sit right with me. Oh and the fact he was sat alongside William Storey at the court hearing. 

Also don't the EFL require a new owner to guarantee that the club will play in that City for at least 10 years as part of the approval process? They only have an 8 year lease...

[chinapig]

25 minutes ago, W-S-M Seagull said:

I believe Coventry are extremely close to administration. They had to sell Hyam on the cheap to generate cash flow. 

This new owner yesterday said that SISU do not have the funds available to plug any gaps. 

Something just doesn't seem right with this new owner. He doesn't appear to have the funds to run a Championship club. 

When he asked the court to delay the sale of the arena the judge said his bid "lacked any substance" that alone would concern me if this was us. There fans just appear to be pleased to be getting rid of SISU so are not really questioning if this guy is the real deal. 

I'd be sceptical about the debt free claims. SISU said that when they took over. The debt isn't actual debt from real money. It's debt from interest etc. It will just be moved around on paper. 

In an interview after court yesterday he said  - “The deal is done,” “As long as I am approved, the deal is done. It’s clean.

Just something about that wouldn't sit right with me. Oh and the fact he was sat alongside William Storey at the court hearing. 

Also don't the EFL require a new owner to guarantee that the club will play in that City for at least 10 years as part of the approval process? They only have an 8 year lease...

Thanks, interesting.

Evidently I should have added a question mark to the end of the topic title!

[Merrick's Marvels]

So if all goes to plan:

The football club will be owned by a local businessman, Doug King.

But the stadium by someone else, Mike Ashley.

If this counts as good news for Coventry City fans, I'm lost for words.

[W-S-M Seagull]

56 minutes ago, Merrick's Marvels said:

So if all goes to plan:

The football club will be owned by a local businessman, Doug King.

But the stadium by someone else, Mike Ashley.

If this counts as good news for Coventry City fans, I'm lost for words.

It's sad that a football club finds itself in a position where their fans are begging Mike Ashley to buy them. 

[exAtyeoMax]

 

https://www.bbc.co.uk/sport/football/63858805

 

Edited December 5, 2022 by exAtyeoMax

[italian dave]

On 18/11/2022 at 10:19, chinapig said:

Thanks, interesting.

Evidently I should have added a question mark to the end of the topic title!

 

On 18/11/2022 at 10:55, Merrick's Marvels said:

So if all goes to plan:

The football club will be owned by a local businessman, Doug King.

But the stadium by someone else, Mike Ashley.

If this counts as good news for Coventry City fans, I'm lost for words.

Yes and yes....

Time for that question mark to be added maybe?!

[exAtyeoMax]

1 minute ago, TomF said:

Sits back, waits for them to enviably go into admin, buys them off the administrators for £1. 

Textbook Mike Ashley. 

who is the chap who bought the club? Just saw an interview on Twitter but don't know who he is?

[italian dave]

Ironically, there's not a mention of this on their website, but Club News today is that there's a "Vacancy for a Skilled Grounds person". 

[Kodjias Wrist]

Well that club are used to turmoil.

From playing at Northampton and Birmingham and going from league 2 to an established championship side again with all that going on is amazing.

[GlastonburyRed]

O'Hare, Hamer, and Gyokeres going for a song, thank you very much!!!

[BCFC1512]

Burton NYD then!!?? Walsall and Birmingham are at home 

[Mr Popodopolous]

2 hours ago, TomF said:

Sits back, waits for them to enviably go into admin, buys them off the administrators for £1. 

Textbook Mike Ashley. 

Although into administration means a 1 or 2 year business plan plus a 12 point deduction and if certain minimum thresholds not met the potential of another 15...are such criteria and conditions to Mike Ashley's liking?

EFL Insolvency Policy is in some respects quite clear.

Edited December 5, 2022 by Mr Popodopolous

[Mr Popodopolous]

That aside, I certainly have sympathy with Coventry on the Football side snd their fans.

Gone through more in the last decade or so turmoil wise, than a lot of clubs have endured in several.

[Mr Popodopolous]

Another Ashley strategy might be bump the rent up a bit but not too far that SISU look elsewhere and take all of the Commercial non matchday revenue for himself.. it was quite high pre Covid.

Surprisingly having just checked it ran at a loss!! Mike Ashley otoh I'd back to bump up the revenue and knock down the cost base over time.

Edited December 5, 2022 by Mr Popodopolous

[Mr Popodopolous]

https://www.ccfc.co.uk/news/2022/december/news-statement-following-receipt-of-an-eviction-notice-from-frasers-group-new-owners-of-the-cbs-arena/

Statement from Coventry. He's tried to bump the rent up and or change the terms of the lease it would seem.

[The Bard]

1 hour ago, Taunton_BCFC said:

Burton NYD then!!?? Walsall and Birmingham are at home 

New Years Day Bristol were supposed to be playing Wasps at AG and City were playing at the Ricoh.

Looks like neither will happen now.  
 

[W-S-M Seagull]

51 minutes ago, Mr Popodopolous said:

https://www.ccfc.co.uk/news/2022/december/news-statement-following-receipt-of-an-eviction-notice-from-frasers-group-new-owners-of-the-cbs-arena/

Statement from Coventry. He's tried to bump the rent up and or change the terms of the lease it would seem.

It's not a lease. It's a licence so therefore they are not afforded the same protections you get from a lease. 

I'm really not sure it was a good move on Covs part to release that statement criticising the new owners of the arena. 

In all of the turmoil they have been through, there is one constant in it all and thats them. Coincidence? 

They were the ones that signed a licence, and apparently under very favourable terms. They then can't really complain when the licence is suddenly not to their benefit. That's the risk they took. 

[Mr Popodopolous]

5 minutes ago, W-S-M Seagull said:

It's not a lease. It's a licence so therefore they are not afforded the same protections you get from a lease. 

I'm really not sure it was a good move on Covs part to release that statement criticising the new owners of the arena. 

In all of the turmoil they have been through, there is one constant in it all and thats them. Coincidence? 

They were the ones that signed a licence, and apparently under very favourable terms. They then can't really complain when the licence is suddenly not to their benefit. That's the risk they took. 

Ah okay,  lease v license..sounds a fairly unusual situation in a football context but then I suppose Coventry's situation is highly unusual?