Does Administration – Or Perhaps Even Liquidation – Now Beckon For Coventry City?


Ian began writing Twohundredpercent in May 2006. He lives in Brighton. He has also written for, amongst others, Pitch Invasion, FC Business Magazine, The Score, When Saturday Comes, Stand Against Modern Football and The Football Supporter. Ian was the first winner of the Socrates Award For Not Being Dead Yet at the 2010 NOPA awards for football bloggers.

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5 Responses

  1. Craig says:

    You on the ACL payroll? No secret which side of the fence you stand. You could have made that article far more balanced had you paid a bit more attention to the utterly ludicrous position of ACL in this sorry affair.

  2. David Rawson says:

    I’m not sure that I’d read the comments you quote in the piece as necessarily threatening liquidation. I suspect the quotes are borne out of the advice the board will surely be getting from their lawyers about the risk of liability wrongful trading under s214 of the Insolvency Act 1986. That section is couched in terms of insolvent liquidation, but its effect is not to require directors to liquidate, but to take every step with a view to minimising the loss to creditors, after the point they conclude that insolvent liquidation cannot reasonably be avoided [if they don’t take some other action, it doesn’t say but should be read as meaning]. The typical step, for football clubs, particularly, who are worthless in liquidation, is to put the club into administration.

    The lie of the land, I’d guess, is that the directors, while ever they can show there’s a chance of negotiating away some of the rent debt and reducing outgoings in future, can get away with saying that they’re not trading wrongfully. Take away the negotiations (or the prospect of them) and they’re directly in the line of fire (s214 liability is personal to them).

    In other words, I suspect that the true import of the statement is that, unless the landlord restarts negotiations, administration is both inevitable and imminent. Where that leaves the club is unclear. Unless someone can fund the administration, can the club meet its outgoings (particularly the ongoing rent payments, which are likely to be a liability the administrator must pay)? If not, can the landlord afford to agree a rent holiday or temporary reduction? Cutting a solution, unless there’s a reasonably cash rich buyer readily available, looks quite a daunting prospect.

  3. SW says:

    It never fails to amaze that no matter how wretchedly the owners run a particular club – as SISU have undoubtedly done at Coventry – there will still be some fans prepared to swallow their nonsense time after time and take to sites like this to defend their indefensible position.

  4. Fat Dave says:

    From any objective perspective, it is evident that SISU are trying to run the club properly. They may have made mistakes, largely because they inherited a mess but most of their decisions have been right, certainly recently.

    Amazingly, given no stadium, debt, and a running deficit, there are still fans out there who think that SISU should invest on new players. Especially moronic because Coventry fans should know by now that running up a debt needed destroyed the club under previous owners. These same fans believe that SISU have an endless supply of investors. In truth, there are no investors willing to waste more money.

    No one owes Coventry City a living and therefore, it is time for the club to be run as a business. This means having a sustainable future, which in turn means having some access to their stadium and close to 100% access of all revenue income.

    It is ACL and the Council who have engaged in brinkmanship as well and in SISU they have found someone else who are prepared to play along with such a dangerous game.

    The fans should be out in force demanding that ACL and the Council back down and give in to SISU to give the club a fighting chance.

  5. fwis says:

    Perhaps nobody in football should bother paying any of their bills…

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