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Jim Brown's Take On City Situation
Published : 22 Mar 2013 00:08:26Rss feed
One Man's View
Here is what I think is going on ...... it is a best guess
Keep in mind that SISU own Otium entertainments who own Coventry City Football Club Holdings who own CCFC. In short a group that is in each case a company wholly owned by the one above it. CCFC was as far as we know the only subsidiary of CCFCH
You are able to transfer assets between companies with no effect tax wise etc.
The lease appears to be in CCFC limited and the League share appears to be in CCFC Holdings.
SISU have transferred all assets player contracts etc out of CCFC Limited in to CCFC Holdings. That leaves what used to be the playing side company of CCFC Limited as nothing more than a property company holding the lease at the Ricoh. They then wind that "property owning subsidiary" up and with it goes the lease.
That means CCFC has no rights to play at the Ricoh. It means that ACL's debt cant be recovered. It means the League has a decision to make as to whether to accept it or not, it will set a precedent that could be quite dangerous for creditors.
It remains to be seen how ACL will challenge this
Source: Coventry MAD
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