Coventry it gets worse

[ginginator]

Liquidation now bad news

[JOHNNYAITCH]

From the BBC..Coventry City FC Ltd, one of a number of companies that make up Coventry City Football Club, goes into liquidation

 

http://www.bbc.co.uk/sport/0/football/23548760

[Santa]

What does this mean though? There are so many legal entities in the group that own different parts of the business.

[robf]

What does this mean though? There are so many legal entities in the group that own different parts of the business.

 

I think the main issue is which of the myriad companies holds the Football League's "golden share" - if its Coventry City FC Ltd then they are in deep trouble.

[Animal]

Yeah its a bit of a minefield of a structure but from what I can gather Coventry City FC Ltd (the club being liquidated) doesn't actually own any assets other than the 'golden share' to play in the FL...although the FL now hold this...the holding company owned the 'assets' and they are still active...

 

Think it basically means a substantial points deduction....

[robf]

Reading through some Coventry forums and I may be wrong, it looks like the Golden share is in another company - Coventry City Holdings [edit: or actually with the FL as Animal points out] so although this is bad, it means the team will still exist - albeit with a hefty points deduction and probably a transfer embargo... Someone feel free to correct me if this is incorrect...

[markh]

Coventry is a disaster zone. The FL should have stepped in long before now.. Dodgy owners, company structures that hardly promote open or transparent dealings and the FL allowed it all to happen regardless of numerous warnings and articles and sent them off to Northampton against the majority of fans wishes.

[Santa]

Think it basically means a substantial points deduction....

Oh well, that's one of the four slots earmarked then.

 

Only three other teams we have to be better than.

[robf]

There is a document here that details all the various companies:

 

http://twohundredpercent.net/?p=23866

 

Interestingly, the company that has been liquidated was the one set-up to hold the golden share and was the one responsible for most of the footballing matters (transfers, player wages, staff employment). How on earth Coventry can function as a club without a football department will be deeply worrying to their fans, I suspect. It's interesting that another company connected with the club (SBSL) is concerned only with helping SISU and its shareholders make a profit and has no interest in the football at all...

[bar1]

the points deduction was always going to be the final outcome, a the CVA wasnt ever going to get accepted. I had £20 on a cov relegation at a massive 9/1 3 weeks......6/4 now.

[chrissy_g]

What a mess!

 

Can you actually stop this type of thing happening? I know there is a fit and proper persons test, and other restrictions but you can't change general business law.

[fairportnick]

Yeah its a bit of a minefield of a structure but from what I can gather Coventry City FC Ltd (the club being liquidated) doesn't actually own any assets other than the 'golden share' to play in the FL...although the FL now hold this...the holding company owned the 'assets' and they are still active...

 

Think it basically means a substantial points deduction....

 

I read yesterday that it could be 20 points. Plus the demoralising effect.

[Santa]

What a mess!

 

Can you actually stop this type of thing happening? I know there is a fit and proper persons test, and other restrictions but you can't change general business law.

You have to really think about more stringent membership criteria and sanctions much earlier down the line.

 

This is why FPP rules are in theory a good thing.

[chrissy_g]

You have to really think about more stringent membership criteria and sanctions much earlier down the line.

 

This is why FPP rules are in theory a good thing.

 

In theory yes, however, businesses will always get into financial difficulty even with these rules. And it is impossible to eradicator 'dodgy' people from football.

 

I think people forget that football clubs are businesses, and their passion for the game clouds thoughts.

You have teams like Swansea who have done extremely well. On the other hand, certain teams are going to suffer like Coventry. Unfortunately they are the team who have had poor management off-field. Much like our own recent plight.

[Little_Al]

It is not impossible to eradicate dodgy people from football but it does need an end to the defeatist attitude of "we can do nothing about it". It probably requires a change in the law, but that is what parliament is for. So get in touch with your MP for a start. If all football supporters got together, they would have sufficient weight to scare any political party into taking action. Perhaps this is what supporters clubs should be for. You could also press the FA into taking control of football - particularly the Premier League. to ensure that only licensed people were involved in the running of football clubs at any level. Just a few ideas for starters. But please don't say "we can do nothing about it", because that simply lets the rogues have their own way and ruin our beautiful game.