Football club secures stadium despite £70m property debts

A football club’s property agents have announced that an agreement has been reached to purchase land that will house a brand new stadium, despite the side still owing several million pounds in rent arrears, the Coventry Telegraph reports.

Property development firm CBRE has reported that it has been appointed by hedge fund manager Sisu, which owns Coventry City Football Club (Holdings) Ltd, to sign a deal for suitable land for a new stadium.

The firm reports that it has been instructed to agree a deal that would allow firm stadium proposals to be submitted to the Football League before its deadline next month.

The news comes despite the fact that Coventry City Football Club Limited, a separate company from the share of the club owned by Sisu, is still firmly in administration, with outstanding debts to its former owners that total £70 million.

Much of what is owed is payable to Coventry City Council and Arena Coventry Limited, who are still owed at least £14 million worth of rent arrears by Sisu.

It emerged last week, however, that Coventry’s Holdings company and Sisu had attempted to buy land just outside of the administrative boundary of the city’s council.

Last Friday, the club’s administrator, Tim Fisher, denied the possibility of any further court battles or the need for the Football League’s approval for any future owner of the club.

The League would also have to approve Sisu’s business projections regarding the new stadium, along with the need to groundshare with another club outside of Coventry for three years while the new ground is built.

Fisher said that the company in question is the largest real estate adviser in the UK and has been hired not just to identify sites but provide football stadium expertise, and negotiate with landowners.

The title reports that the purchase is expected to be completed within “three to four weeks”, declining to name the chosen site but confirmed that negotations have progressed to a second round of bidding.

A spokesman from CBRE said: “CBRE is advising Sisu, owner of Coventry City Football Club, on the club’s proposed relocation.

“The firm has been working on finding a site for a new stadium within the Coventry area and is close to agreeing a land deal.

“This will secure the future of the club going forward, providing first-class new facilities for the team, fans and the local community. Proposals will go before the Football League in June.”