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City Council Accused Of Trying To Take Control Of CCFC
SISU Playing Hardball
According to documents lodged with the High Court, SISU are accusing Coventry City Council of "wrest control" of Coventry City Football Club.
An article in today's Coventry Telegraph by Les Reid says that: "Papers served by Coventry City Football Club (Holdings) Ltd – signed by its hedge fund owner and Sisu boss Joy Seppala – also allege council executives were last year involved in talks over a joint plan to buy out the Ricoh company’s Yorkshire Bank mortgage for less than the £14million the council eventually paid for it.
That £14m taxpayer deal to alleviate financial pressure on Arena Coventry Limited was approved in January by councillors behind closed doors – after months of the club/Sisu refusing to pay £100,000-a-month rent to ACL for using the stadium, claiming it was too high.
The public High Court papers state the council’s “clear object... was to wrest control of the club, in which the claimants have made substantial commercial investments over a period of years, from the claimants, with a view to appointing a new owner of its own choosing.
“The claimants submit that it is no part of the function of a local authority to interfere with the ownership and commercial operation of a local football club and that this misconceived project has led the defendant to act unlawfully, and/or for an improper purpose.”
SISU, who are now playing hardball and are clearly not prepared to leave the club without what they think they are entitled to, are after a judicial review regarding the decision and £14m loan to ACL, claiming the action is contrary to “state aid” laws and has created unfair competition.
Source: Coventry MAD
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