Coventry City facing Chinese takeover

[dutchman]

Chinese businessmen are considering investing in Coventry City, despite the Sky Blues' relegation to League One, reports BBC Coventry & Warwickshire.



Former Coventry vice-chairman Gary Hoffman has been working with Ken Grant, who is an independent consultant in Asia.

Any deal would involve taking up 100% ownership of the club, as well as half ownership of the Ricoh Arena.

But they are understood not to want to work with current owners Sisu Capital.

Although Sisu are keen to find investors, the Chinese group are only interested in sole ownership.

Hoffman had feared that relegation might put off potential buyers, but there is still interest.

Grant is a director of FDKG Ltd - a company that advises top end brands and businesses on moving into the Chinese luxury market.

Following relegation, manager Andy Thorn was confirmed in the post for next season.

But he is still waiting to find out his budget as he aims at securing promotion back to the Championship at the first attempt for the the Sky Blues, who are still under a transfer embargo .

[Spuffler]

Japanese stadium and now Chinese team owners. Sigh.....

[StevieG]

Sounds like a Chinese Takeaway

[dutchman]

From what I've read elsewhere this 'takeover bid' is just another load of hot air from Hoffman & Co.

[rebbonk]

Any deal would involve taking up 100% ownership of the club, as well as half ownership of the Ricoh Arena.

Is the arena itself up for sale?

[dutchman]

Is the arena itself up for sale?

The club has the rights to buy the city council's 50% share of the arena for a fixed price.

[rebbonk]

Is the arena itself up for sale?

The club has the rights to buy the city council's 50% share of the arena for a fixed price.

Thanks for that. I wasn't aware of it

[dutchman]

Council are the only ones who can revive Coventry

The announcement of talks on Friday morning between the various partners involved in the running of Coventry City Football Club is surely to be welcomed.

The club's owners, SISU, the city council, the Higgs Trust... it is an overdue and painful first step on the road to recovery.

But this is not a situation that requires a sticking plaster. Only major surgery can effect long-term benefit to this basket-case of a football club.

That is why I have come to the conclusion that radical action is needed.

My solution would be for Coventry City Council to grab the bull by the horns and buy the lot.

Yes, that's right. Go to the markets, find the cash and pay up the blooming lot of 'em.

Quite clearly, the situation as it exists at the moment is an untenable one.

There are too many vested interests. Too many stakeholders wanting their pound of flesh.

The trouble is, there is not enough meat to satisfy everyone.

SISU want their money back - or a large percentage of it - before they will move aside.

The Higgs Trust want value for their slice of the action... blah, blah.

And if Gary Hoffman was the saviour, he's taking his time to ride to the rescue.

No, I'm afraid we will just have to assume there are no white knights. No mystical Lady Godiva, armed to the teeth with gold bullion, who will come galloping over the hill.

If they were there, they would have shown themselves by now.

Coventry City are in the third tier of English football for the first time since 1964 and those who contributed to this mess should hang their heads in shame.

It is the ninth biggest city in England for crying out loud.

Now before you start thinking that this is just a rant, I'll provide some evidence that points to the fact that local authority ownership is not such a bad idea after all.

For a start, let's look at the government's latest paper, published in October last year into football governance.

I quote: 'Too many of the problems faced by clubs... have been caused when the ground becomes separated from the club.'

Is that the case at Coventry? Yes.

It remains a root cause of all the issues.

The fact that the club sold the revenue streams from the concessions continues to defy belief.

I can understand why it was done. But it's financial madness. Merely storing up problems for someone else to sort out somewhere down the line. And now we have almost reached the end of that line.

Even the rental figure of £1.2m per year sticks in the throat when you are in the Third Division. And if the football club can't pay it, the council is among those who lose out.

The owners can't see a way out, either. Otherwise they would have walked towards the light.

A SISU spokesman commented to the Coventry Telegraph last week: 'This is not a sustainable situation for either SISU or the club.'

Blimey, it took a £40m loss in four years for them to admit that. I hope they are nowhere near my pension fund.

Coventry's council taxpayers might baulk at my suggestion. I can understand why with such pressure on public services.

But I'm asking them to find the money. Not to foot the bill. Under council direction, the Sky Blues can ensure the local authority's large loan is paid-for.

Employ a chief executive to run the club upon financial ratios that have been agreed upon this season by Championship clubs as a way of maintaining a healthy business model.

It could be run, effectively, under licence. The Ricoh Arena could be developed along commercial lines with profits under-pinning continued investment in the playing side of the club.

A chief executive would ensure that the club stays within its financial parameters. A sporting director could oversee the appointment of the playing and coaching staff.

And someone (Daniel Gidney) would be charged with the continued development of the first-class reputation and facilities at the Arena site. They might even put in a train station.

Why should the council take this action?

I'll tell you why.

Steve Morphew, leader of Norwich City Council, said when the Canaries were promoted 12 months ago: 'The benefits of Premier League football to the City as a brand are endless.'

Keith Brown, the chief executive of the East of England tourist board, added: 'This is extremely important because the city will be exposed to a wider audience of people. It will make a difference to the city's hoteliers, attractions, bars etc.

'There will be more international visitors because of the Premier League's huge following around the world.'

Blackpool estimated that their local economy was boosted to the tune of £30m during its season in the top-flight.

Even those - such as a study by Cardiff's Business School - who claim that it has little effect are missing the point.

They have dismissed any boost to the economy because people attend football for 'a day trip.'

That may be so. But while they are in Coventry they will need feeding. They will need to drink.

You will be capturing pounds that could be going somewhere else. It will be reflected in improved profits and increased revenue generated for local authority coffers through business rates.

Portsmouth's Council have been looking into buying Fratton Park. One of their council members says that a thriving football club was vital because 'of the confidence, economic stimulus and increased public profile.'

And there is a precedent. Swansea City Council found £32m to build the Liberty Stadium.

There was a time when Coventry was seen as the go-to place. When Jimmy Hill was full of energy, all-seater stadia, changing the colour of the strip, the Sky Blue song.

The council clearly haven't trusted anyone involved in the club for some time or else they would have entered negotiations with them long ago.

I'm sorry to lumber them with this thought, but after agonising for a number of months, it's the only way out.

Difficult situations call for drastic and remedial action.

And the time to answer that call is now.