Coventry City owners Sisu 'take Ricoh Arena legal battle to Europe'

Coventry City owners Sisu are taking the Ricoh Arena legal battle to Europe, the BBC has reported.

A tweet by Simon Gilbert, the Corporation's political reporter for Coventry and Warwickshire at 4.50pm today said: "Sources have told us Coventry City's owners Sisu have taken the Ricoh Arena legal battle to the European Commission."

Then speaking after the 5pm news bulletin, Simon said: “It’s very sketchy on detail at this stage but we have heard from multiple sources now that Coventry City’s owners have taken their legal action over the Ricoh Arena further.

“It is our understanding that they have made a complaint to the EU Commission.

"Exactly what that complaint involves and what possible action could be taken on the back of it we just don’t know at this stage.”

What it means for Ricoh talks

Simon went on to say that the details at this stage are sketchy, but “the broad overarching story is that this legal action appears to be rumbling on rather than having been killed off as we thought it might have been when Sisu lost recently in the Supreme Court.”

Speaking about what this means for the current talks over a new deal to play at the Ricoh Arena, Simon said: “We don’t know what this means for those talks at this stage.

"What we do know is that it was an absolute pre-condition of those talks from Wasps that if they were to grant Coventry City a new deal to play at the Ricoh Arena, they would have to cease and desist all legal action in relation to the arena.

“Whether or not they [Wasps] would interpret this complaint to the EU commission as an extension of that legal action is something which is open to debate - we don’t know.”

CoventryLive has contacted Sisu, Coventry City FC, Coventry City Council and Wasps for a comment about the BBC's report.

'A few hurdles'

Only last week, we reported that Coventry City Football Club has hinted of troubles in talks with Wasps to get a new deal to stay playing at the Ricoh Arena next season.

The two sides revealed they had come together for talks just over two weeks ago after the Supreme Court announced it had dismissed a review into a legal challenge over the sale of the Ricoh Arena to Wasps.

Then, the football club said it needed to move "very quickly" to agree a deal with landlords Wasps in order to keep a groundshare option on the table as a back-up plan.

A spokesman for Coventry City Football Club told us there had "been a few hurdles along the way", and Wasps said they will inform fans when "hopefully" an agreement is reached.

The club now has less than three weeks until the English Football League meeting which will decide if the Sky Blues can stay in the League.

Wasps interview postponed

Stuart Cain, managing director of the Ricoh Arena/Wasps had been due to give an interview on the Phil Upton show on BBC Coventry and Warwickshire this afternoon about Wasps’ new Vodafone sponsorship deal, but the interview had to be postponed at the last minute because Mr Cain was called to an urgent meeting.

The background

It was only three weeks ago that there appeared to be light at the end of the tunnel for Coventry City fans after the club revealed it had started talks with Wasps over staying at the Ricoh Arena.

And a statement released by the football club on Wednesday, April 24, stated that Coventry City had also signed a Heads of Terms agreement over a "groundshare at an alternative venue".

The Supreme Court had earlier refused Coventry City permission to appeal the decision of the Court of Appeal not to allow a judicial review into the sale of the Ricoh Arena operating company ACL to Wasps.

The legal action brought by Otium Entertainment and Sky Blue Sports & Leisure, the Sisu-controlled companies that make up Coventry City, argued that ACL was undervalued when Coventry City Council sold its stake to Wasps.

Wasps paid a total of around £20million, with more than £5m split between joint-shareholders the Alan Edward Higgs Trust and the council and Wasps taking on the £14m loan from the council to ACL.

Coventry City and Wasps are now in talks over the football club's future at the Ricoh Arena

If successful, the legal action could have seen Wasps forced to cough up an extra £27m for ACL, potentially bankrupting the rugby club.

It is not known if this is the end of the legal action which Wasps have said is a barrier to City extending their deal to stay at the Ricoh.

Coventry City bosses have always said they still want to do a deal to stay on at the Ricoh - but owners Wasps have repeatedly said they will not enter talks over a new deal unless the long-running legal action is dropped.

The Supreme Court announcement came on the same day as Birmingham City were reported to be in talks with the Sky Blues over a groundshare next season.

Sisu recently also revealed they want to build a new stadium for Coventry City on the former site of the Woodlands Academy.

But that could still take a long time to come to fruition.

CoventryLive are again urging fans to speak out using the #SOSB on social media, and tell everyone what the club means to them.

Fan reaction

Fans have been reacting to this latest development on our Facebook page. Here is what some of them had to say.

Royston Wale: “There goes the Ricoh deal. No ground. Fans had enough. Robins pack your bags and get out of here. “

Simon Cannon: “This has got to be a sick joke?”

Jay Howells: "I think this has a lot more mileage left in it yet and the ones that are suffering are the fans.

"Once Sisu are done with what they want we will be left on the kerbside with no training ground, no stadium and no players worth anything and they wont give a toss.

"City is just on a balance sheet as far as they are concerned."

Mick Dickinson: "People need to boycott the stadium completely - football, rugby netball, the whole lot. When the money dries up for Sisu and Wasps, bet they can do a deal then."

Nobby Clarke: “SISU, ever thought of investing in the club instead of lawyers and the courts?!”

John Curzon: “Is anyone actually surprised? Away days only.”

Sisu's open letter and reaction

Nigel Quinlan: "The Commission was always going to be the end game regards this claim. It is after all a claim regards a breach of European law rather than English law.

"This is not bad news at all.

"You have to exhaust all avenues of lawful civil action in your own country before you can go to the European courts. So you can see why Sisu have done what they have done in the appeals and judicial reviews.

"They have had no choice but to continue, the English judges would never overrule English law with European law."

Reaction has also been coming in on Twitter.

CJ Joiner: "Sad but it’s hardly unexpected news. Clock is ticking. This needs resolving and fast."

James Lillis: "Sisu have so many opportunities to show some common sense and they always pick the wrong choice. Imagine where we would be if we were managed correctly. There's only so much loyalty from fans they can burn through and its' wearing thin."

For the latest developments on the Ricoh Arena legal battle and CoventryLive's campaign to save the Sky Blues, follow our live blog here.

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