Coventry City Councillors have this afternoon voted to bail out Ricoh Arena management company - Arena Coventry Limited.
The Council agreed in private to fund the Arena to the tune of £14m which now means that the City Council are the Arena's bankers.
In a statement issued to the Coventry Telegraph, City Council Leader John Mutton said: “We’re now effectively acting as a banker to ACL, which will see the council pay off the current loan arrangements with its current lender the Yorkshire Bank.
“There is no net cost to the council – this is a commercial arrangement that will provide a modest surplus to plough back into services and jobs.
“This loan is not about putting money into the football club; no cash is being put into CCFC by the council; this would be unlawful and inappropriate.
“We’re working with ACL and ACL’s bankers to restructure ACL’s loans over a longer period, so it can provide a solid business platform now the club has been relegated to League One, although of course we all hope we will soon be moving back to the Championship.
“As a result, the interest that ACL now pays on its loan will go to the council, some of it helping to support jobs and services, rather than to the bank.
“It’s up to ACL and the club now to find a way forward on the rent issue; we know that ACL is totally committed to doing this, and we hope the club’s owners will be committed to doing so too.”
Read More http://www.coventrytelegraph.net/coventry-city-fc/coventry-city-fc-news/2013/01/15/92746-32605775/?#ixzz2I3wyBtaw
Source: Coventry MAD