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FOI responses expose Coventry City Football Club’s “new stadium plans”
The Football League has maintained that a commitment by SISU-owned Otium Entertainment Group to return Coventry City Football Club to the city of Coventry was a condition of their permission for the club to “temporarily” ground-share with Northampton Town.
Coventry City’s chief executive, Tim Fisher, has repeatedly stated that the club’s owners intend to return the club to the Coventry area and they have agreed a £1 million bond with the Football League should the club not do so (the Football League has since revealed that this “bond” is nothing of the sort – it is, instead, a promise to pay should the club default on its promise, rather than a sum that has been lodged with the League or an Escrow service).
Tim Fisher has made a number of promises and self-offered deadlines over the past few months, stating that more information about the company’s (or companies’) plans for their new stadium would be forthcoming. But despite this, Coventry City Fans remain in the dark.
Tim Fisher’s first – and most significant – promise was made in May this year when he said that the new stadium would be built within three years. Four of those 36 months have now passed and fans still don’t know where the proposed new stadium will be built.
And on 26 July Tim Fisher told the Coventry Telegraph that “terms had been agreed” on one site, subject to contract and that they had entered “exclusive talks on a second site”. He said that they were “aiming to finalise a deal within eight weeks.”
That is a self-imposed deadline of the 20th September for the fans to be told where the new stadium will be built; although he still has not said which SISU-owned entity was seeking to buy the site and build the new stadium (and therefore own it).
In order to build a stadium CCFC will not only need to buy the land but they will also need to obtain planning permission. It is usual practice when developments on such a scale are envisioned for discussions to take place with the local authority planning offers prior to the purchase of a site.
While these discussions can’t bind the local authority on which way the decision will go once any planning application is eventually made; they can help developers identify whether planning permission is likely to be particularly difficult on the proposed site and whether it is appropriate to purchase land for the intended purpose.
Using the Freedom of Information Act, the Footy Law Blog asked Coventry City Council and all six neighbouring local authorities whether their planning offers had “engaged in formal conversations with third parties over the past 36 months about any proposed new sporting stadia within the council boundary area”.
The local authorities were also asked for the number sites discussed as a proposed location for any new stadia; whether any discussions were still on-going; and whether the planning department had received any indication that a planning application for new sporting stadia was to be expected.”
The local authorities were deliberately not asked for the identity of any third parties engaged in such discussions: such a request was likely to have been refused on the basis that the information was exempt from disclosure on the grounds that it would breach the Data Protection Act or prejudice the third parties’ commercial interests.
In response to the requests, Coventry City Council – which covers the area that the Football League regulations say CCFC should be based (not that the Football League has followed its regulations in its handling of CCFC’s move away from the Ricoh Stadium) – say that its planning department “has not engaged in formal conversations with third parties over the past 36 months about any proposed new sporting stadia within the council boundary area” and that it has “not received any indication that a planning application for new sporting stadia is expected.”
The same is true of North Warwickshire Borough Council, Solihull Metropolitan Borough Council, Stratford upon Avon District Council and Warwick District Council.
Nuneaton and Bedworth Borough Council was slightly more nuanced: it’s head of development control said that she was “not aware” of any formal conversations with anyone about a new sporting stadium; and that no planning application was expected.
Rugby Borough Council, on the other hand, has had discussions with third parties during the past three years about proposed new sporting stadia. Six locations were identified but discussions “primarily revolved around one specific location.” Those discussions are no longer on-going and the planning department has received no notification that a planning application should be expected.
So, the question remains: “Where does Tim Fisher plan to build CCFC’s new stadium?”
Or, perhaps a more pertinent question is: “Does Tim Fisher really plan to build a new stadium for CCFC?”
And a key question that the Football League can no longer duck: What information have they received to show that Otium Entertainment Group intend to return the Club to the confines. Are the Football League presiding over another Wimbledon franchise by stealth?
Note: The FOI requests were made in separate emails to the local authorities on 12th August 2013. On 13th August the request to Solihull Metropolitan Borough Council was clarified to make clear that the question referred to large sporting stadia with spectator seating rather small community facilities. Responses were received in the period from 13th August 2013 to 6th September 2013.
Leaked player transfer documents contradict CCFC position on contracts
The Prison of Measured Time blog, which focuses on football finance, has published leaked player transfer documents which clearly contradict statements by Coventry City FC chief executive Tim Fisher and administrator Paul Appleton.
The leak is important – and the blog should be congratulated for getting hold of these documents and having the courage to publish them – because Tim Fisher and Paul Appleton have repeatedly stated that key assets of Coventry City Football Club – player registrations – were not held by Coventry City Football Club Ltd (the company in administration) but by Coventry City Football Club (Holdings) Ltd, a different SISU-owned company that was not in administration.
This information would have seriously affected the so-called “sale”-process of Coventry City FC Ltd which saw another SISU-owned company, Otium Entertainment Group Ltd, emerge as the preferred bidder. In the end the sale didn’t go through because Ricoh Arena owners ACL rejected a CVA and the administrator has announced his intention to liquidate the company that was in administration (but doesn’t appear to have made any progress on this).
The information would have been key to the Football League’s decision to transfer its “golden share” in the League from the company in administration to Otium Entertainment Group.
Tim Fisher, writing in the Preston North End match-day programme on 25th August, claimed that the Football League had been registering players in Holdings, rather than Ltd since “way before SISU took over”, adding: “there is a myth that somehow SISU have set up this structure because they have something to hide when, in fact, it was a structure they inherited.”
The documents obtained by A Prison of Measured Time show this to be false.
They have published compensation agreements from Aston Villa for Richard Blythe and Kofi Poyser, dated 17th December 2007; a transfer agreement with Newcastle United for Leon Best, dated 1st February 2010; transfer agreements with Walsall for Dan Fox (28th January 2008) and Scott Dann (31st January 2008); and a transfer agreement with Bolton Wanderers for Temitope Obadeyi, dated 19th September 2006.
All these documents show that the agreements are between the respective clubs and Coventry City Football Club Ltd.
Of interest to most football fans will be the financial agreements for the transfers and associated add-ons. Those details have, however, been redacted. But they are very significant for fans of Coventry City and other football fans who are concerned about the lack of transparency and fair-dealing by those tasked with regulating football.
Some unanswered questions to the Football League about Coventry City FC
Last night the Football League said:
“Following the failure of Coventry City FC Limited’s Company Voluntary Arrangement earlier today, the Board of The Football League has considered an application by the Administrator’s preferred bidder, the Otium Entertainment Group, for a transfer of the club’s share in The Football League under the ‘exceptional circumstances’ provision of The League’s Insolvency Policy.
The Board has agreed to transfer the Club’s share on the basis that it accepts a 10 point deduction for the 2013/14 season. This decision will enable Coventry City to continue its membership of The Football League, despite the failure of its CVA, and participate in the 2013/14 Sky Bet League 1 season.“
These three sentences leave so many questions unanswered, so I thought I would list them:
- Why is the Football League’s “Insolvency Policy” secret?
- What were the “exceptional circumstances” that applied to the situation at Coventry City?
Following the failure of the CVA, the administrator of Coventry City FC Ltd said he would now seek to liquidate the company. This has not yet happened. Coventry City Football Club Ltd remains in administration and can only be liquidated by an order of the High Court.
If disputed, as is the case here, a High Court liquidation order will only be made after a hearing at which the court will inquire into the circumstances that led up to the insolvency. The hearing will include questions about the transfer of assets; such as the “sale” by the administrator of the assets of Coventry City FC Ltd to the Otium Entertainment Group Ltd.
- Why has the Football League transferred an asset of Coventry City Football Club Ltd (the “golden share” in the Football League Ltd) to Otium Entertainment Group Ltd before awaiting the outcome of the legal process?
- Why does the Football League refer to a “preferred bidder” when talking about a company heading towards liquidation, bearing in mind that liquidation is about the closure of a company rather than its sale?
- Bearing in mind the implication behind the immediately preceding question, on what basis have the Football League decided to allow Otium Entertainment Group Ltd to be given a “golden share” in the Football League Ltd, to operate a club called Coventry City Football Club?
In an earlier statement, the Football League said it would allow Coventry City to play its home matches at Northampton Town’s Sixfields Stadium, contrary to its own rules and regulations, and the FAs rules and regulations, but that this agreement was “entirely conditional on the Club ultimately exiting administration in accordance with The Football League’s conditions and achieving a successful transfer of its League share.”
- Why did the Football League deem it appropriate and necessary to ignore both its and the FAs rules and regulations when agreeing to the ground share with Northampton Town?
- Why has the Football League overturned its own position that the ground-sharing agreement was “entirely conditional on the Club ultimately exiting administration”, bearing in mind that Coventry City Football Club Ltd is still in administration?
At a number of points during the administration process, the Administrator of Coventry City Football Club Ltd has stated that he could not operate the club in administration, as other football club administrators have done, because while Coventry City Football Club Ltd owned the “golden share” in the Football League, the players were contracted to and registered with a different company, Coventry City Football Club (Holdings) Ltd. This is contrary to the Football League’s rules and regulations that define a club as the company holding the “golden share.” This arrangement came to light after the club went into administration.
- Now that this irregular arrangement is a matter of public knowledge – and, effectively, a matter that the Football League is now aware – has the Football League insisted that the players’ contracts and registrations be transferred to Otium Entertainment Group Ltd as a condition of the transfer of the Golden Share?
- If not, isn’t it the case that Otium Entertainment Group Ltd are in the same position that the Administrator was in – ie, they have the “golden share” entitling them to play in the Football League, but no players contracted to it?
- If the “new” Coventry City Football Club (ie, Otium Entertainment Group Ltd) play a Football League match with players who are owned by another company (ie, Coventry City Football Club (Holdings) Ltd) are they not in breach of Football League and Football Association rules and regulations concerning third party ownership?
- If the players’ contracts and registrations have not been transferred to Otium Entertainment Group Ltd, are the Football League not sanctioning a further breach of their rules and regulations (and, in fact, their Articles of Association) by allowing a “club” to be operated by two separate entities?
- If the players’ contracts and registrations were transferred to Otium Entertainment Group Ltd, when did this transfer take place, and why did the Football League not publicly announce the transfer as they do with every other payer transfer?
And finally, In its earlier statement about ground-sharing, the Football League said: “with the new season less than four weeks away, the Board required certainty as to where the Club would play its matches from the start of the new campaign.” It continued: “the Board was placed in an unenviable position – with the very real possibility of Coventry City being unable to fulfil its fixtures for next season.“
In its statement last night, the Football League said its decision, in “exceptional circumstances” to transfer its share to Otium Entertainment Group Ltd “will enable Coventry City to continue its membership of The Football League, despite the failure of its CVA “
- Is it correct to read into the Football League’s statements, that its position that its rules and regulations will never be applied correctly by the Board if it means that a club will be forced to exit the Football League?
- If that is the case, aren’t the Football League saying that owners and directors can flout the rules with impunity; so long as they get their timings correct and allow things to happen right next to the start of a Football League season?
The Football League concluded its statement last night by quoting its chairman Greg Clarke saying that the Board were “dismayed at the level of intransigence being shown.”
The Board need to be aware that football fans up and down the country – not just Coventry City fans – are dismayed at the actions of the Football League and the lack of proper transparency and accountability in holding football club owners and directors to account for their mismanagement.
As one football fan said on another club’s message board last night: “Before a ball is kicked in its 125th season, the football league betrays its legacy.”
Sixfields ground share would make Northampton play second fiddle to Coventry City
It was reported in the Coventry Telegraph last night that an agreement had been reached for Coventry City to ground share with Northampton Town at the latter’s Sixfields Stadium while a new permanent stadium is built at an undisclosed location somewhere in the Coventry area.
The Telegraph reports that the Football League Board were due to discuss the proposal today. The League has made no announcement so far.
Northampton’s chairman David Cardoza told the BBC that “There’s some legs in this, but it’s not near done and dusted,” adding: “It’s speculation at the minute.”
If Northampton and Coventry do reach a deal to share the Sixfields and the proposal is ratified by the Football League; Northampton will play second-fiddle to Coventry City on the 10 occasions when both teams are due to be home.
Internet forums and the media have quoted Football League regulations on ground sharing, particularly regulation 13.4 which states: “Ground sharing will only be approved at the discretion of the Board. The Board will not generally approve any ground-sharing arrangement where the club plays its matches outside the conurbation, as defined by the Board, from which the Club takes its name or with which it is otherwise traditionally associated.”
Many people have interpreted this by saying that a club can only ground share within 30 miles of its existing stadium – but such a condition is not stipulated in the regulations. That may be one of the Football League’s unpublished rules, or it may be that it has been applied to a different club. But the regulations themselves state it is at the discretion of the board; and the conurbation requirement will only be applied “generally”.
But little attention has been paid to the Football Association’s rules which would also apply to any ground sharing.
The Football Association’s rule 2.3.1 states that where two clubs enter a ground-sharing agreement “the Club playing in the most senior competition has priority of fixtures at all times”.
This means that if Coventry City and Northampton Town do agree a ground-sharing arrangement, League One Coventry City’s fixtures would take priority over League Two Northampton.
Northampton’s home matches against Newport, Torquay, Scunthorpe, Exeter, Morecambe, York, Southend United, Bristol Rovers, Mansfield and AFC Wimbledon would have to move to a Friday or Sunday (FA rule 8.13) to make way for Coventry’s home matches against Bristol City, Preston North End, Colchester, Gillingham, Brentford, Crawley Town, Carlisle, Shrewsbury, Port Vale and Stevenage.
But the possibility of a ground share being ratified by the FA is slim, if the Association applies its rules correctly. The same rule (2.3.1) states that: “Ground sharing may not be permitted when one of the sharers retains the use of another ground unless that club can show by means of a refused planning permission or similar that it cannot meet the requirements of the Criteria Document at that ground.”
Coventry City’s present landlord, Arena Coventry Limited (ACL), has repeatedly said that it wants Coventry City to continue playing at the Ricoh Arena. The difficulty is that it won’t negotiate with the proposed new owners while the club is still in administration. ACL says it can only negotiate with the administrator as legally, the administrator is the person responsible for running the club until it exits administration.
The FA rule also states that, except in an emergency, any ground sharing agreement must be completed by the 31st March if a club is to be permitted to ground share in the following season.
- The Northampton Chronicle and Echo’s report of the story contains a peculiar line: “The deal would not be a groundshare, but purely a rental agreement.” I have absolutely no idea what they mean by this. Both the Football Association and the Football League require member clubs to have their own ground with security of tenure; but will allow the sharing of a ground, either with another member club, or with another sporting club, but such sharing agreements require the consent of both the FA and the Football League. The rules do not cover any situation that could be described as “purely a rental agreement”.
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