Coventry City deducted 10 points by the Football League

[dutchman]

Coventry City have been deducted 10 points by the Football League.

A High Court hearing in London on Tuesday ruled that the League One club was "in administration".

City were taken to court to face an administration order from their Ricoh Arena landlords, Arena Coventry Ltd, over a year's unpaid rent of £1.3m.

The deduction means the Sky Blues, who have seven days to appeal against the decision, slip from 10th to 15th in League One.

In a statement, Coventry said they were "disappointed by the decision" but added that they "understand the Football League's course of action in accordance with its rules and regulations.

It continued: "We welcome the offer for further dialogue which we hope to commence at the earliest available opportunity.

"Coventry City Football Club has the right to appeal the decision within seven days and discussions have already started with regards to the club's next official course of action."

The news is the culmination of a series of events which began a week ago, when it was announced that Coventry City Football Club Ltd, the non-operating subsidiary company that held the lease and licence for the Ricoh Arena, was to go into administration.

Sisu, the consortium which owns the Sky Blues, argued that the company did not hold any assets or staff of its own.

However the court decided that the subsidiary owns the Golden Share, which guarantees membership of the Football League.

The Football League have therefore responded by taking the 10 points away from the Sky Blues.

The move all but ends Coventry's hopes of making the play-offs - they are now 15 points behind sixth-placed Sheffield United with only six games remaining.

But they appear to be safe from any danger of relegation - 21st placed Scunthorpe are 12 points behind Steven Pressley's side.

Coventry, however, will be boosted by the agreement with ACL which sees them playing their final three homes games of the season at the Ricoh Arena.

The location of Friday's home fixture against Doncaster had previously been in doubt, after last week the Sky Blues moved all staff and club shop stock from the Ricoh Arena to their training ground.

Despite their financial state, the Sky Blues have been attracting interest from American property tycoon Preston Haskell IV, who recently visited Coventry to analyse the club first-hand.

[dutchman]

Coventry City appeal over 10-point deduction for administration

Coventry City have decided to appeal against their 10-point deduction for going into administration.

A High Court hearing in London last week ruled that the League One club was "in administration", triggering the automatic Football League punishment.

But Sisu, the consortium which owns the Sky Blues, argued the division of the club that is in administration did not hold any assets or staff of its own.

And they have now officially submitted an appeal to the League.

Last Tuesday's High Court ruling decided that the subsidiary, Coventry City Football Club Ltd, owns the 'golden share', which guarantees membership of the League.

But City's owners' argument remains that Coventry City Football Club (Holdings) Ltd, who are not in administration, are the company with whom the Football League should be dealing.

A statement released by the League One club on Thursday afternoon said: "Coventry City Football Club (Holdings) Ltd has submitted an appeal to the Football League to have the 10 points deducted last week reinstated.

"The points were deducted following the administration of CCFC Ltd.

"The club will keep supporters informed of the progress of the appeal."

City were originally taken to court to face an administration order from their Ricoh Arena landlords, Arena Coventry Ltd, over a year's unpaid rent of £1.3m.

Paul Appleton, joint administrator for Coventry City FC Ltd and Arena Coventry Ltd, has responded to news of the Sky Blues' appeal by issuing a statement of his own.

"I understand Coventry City FC Holdings have today appealed against the 10-point deduction imposed after Coventry City FC Limited was placed into administration," said Appleton.

"Having spoken to Holdings' legal team, I have advised the appeal can be made on a joint basis between Holdings and Limited on the understanding it does not prejudice my on-going investigation as joint administrator in any way."

Last week's points deduction dropped Coventry from 10th to 14th in the League One table.

But, if they were to be successful in their appeal, despite their heavy 4-0 defeat at Walsall on Easter Monday, they would re-enter the picture as promotion contenders.

Despite their financial state, the Sky Blues have attracted interest from American property tycoon Preston Haskell IV, who visited Coventry last month to discuss a potential takeover.