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FL: Golden Share Transferred To Otium Under Exceptional Circumstances
League On Player Contracts
The Football League have said in an email to a supporter that they transferred the "Golden Share" to Otium Entertainment Group in "exceptional circumstances."
An email from the The Football League's Customer Service Officer Andrew Pomfret reads: The administrators sold the assets that were under their control to Otium Entertainment Group. This included the right and title in the one ordinary share in The Football League that constitutes membership of The League. With the rejection of the CVA, this meant that there was no company eligible to compete as Coventry City Football Club for the 2013/14 season.
“In order for Coventry City Football Club to compete in League 1 this season, the Board agreed to transfer the club’s share to Otium under its ‘exceptional circumstances’ provision. This effectively sought to ensure the club continued to operate as a member of The League. As a condition Otium had to accept a ten point deduction, due to the fact that the club had been unable to agree a CVA as ordinarily required under The League’s insolvency policy.
“Over time, the ownership arrangements of Coventry City have become extremely complicated. The contracts of employment for Coventry City players were entered into by a different company to that which held the share in the Football League. Both The Football League and The FA registered those contracts, because The Football League effectively treated the two companies as a single entity and thus considered there to be no breaches of existing regulations at the time.
"Through the Administration process this issue has been addressed. The League share and players contracts are now held by the same entity.
"The League has reviewed its procedures and measures put in place to ensure that this situation cannot be repeated."
Source: Coventry MAD
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