UK: Coventry City fans’ group and club in row over Ricoh Arena court battle [Cayman Islands company involved]
SIMON GILBERT From Coventry Telegraph
The club’s biggest fans group has published a list to back up its claim that Sky Blues are involved in legal fight
Coventry City’s biggest supporters’ group has hit out at statements which suggest the club is not involved in ongoing court action over the Ricoh Arena.
The Sky Blue Trust has compiled a lengthy explanation as to why it believes it is not possible to separate the club from the legal battle currently being pursued against Coventry City Council and concerning Ricoh Arena landlords Wasps.
The club has also responded, saying again that it is not liable for any legal costs and that no club staff are working on the case.
Court documents show the action, following the sale of the Ricoh Arena to Wasps, is being pursued by the two companies which make up Coventry City – Otium Entertainment Group and Sky Blue Sports and Leisure – as well as Sisu-related Cayman Islands-based firm Arvo. CCFC owners Sisu are not named as complainants or interested parties.
Statements from Coventry City have repeatedly indicated that the club is not directly involved in the court action, the focus of staff remains “on the day to day running of the football club” and that CCFC is “not liable for any courts costs”.
What the Trust says
A spokesman for the Sky Blue Trust said: “Against all the evidence we have club statements and assertions that ‘the club’ are not involved, liable or affected.”
He added: “Clearly from the evidence at Companies House, the EFL, the courts, etc Otium Entertainment Group Ltd is, in operation and practice, CCFC.
“The reality is that it is not possible to separate the two. The only separation is that the fans support CCFC, not OEG.
“The club, the Sky Blues or CCFC lives in the hearts and minds of its supporters alone, as always has and will be the case. In all other material ways, CCFC does not exist except as Otium Entertainment Group, trading as CCFC.
“There is no separation. Otium Entertainment Group Limited, trading as CCFC, is fully part of the court action.
“Of course, that has serious implications for the future of our club and the understanding of the problems it faces. The court action brings potential risks for Otium Entertainment Group and therefore the club.”
Is Otium separate from CCFC?
The Trust spokesman added: “Fans are assured that the club is not part of the court action and not affected by it or its costs.
“That assurance of course depends on there being separation between CCFC and its owners (including Otium) who are taking the court action.
“Is Otium Entertainment Group Ltd (OEG) separate from CCFC? In short no.”
Coventry City
In response to the Trust’s statement, a club spokesman said: “Following the recent statement made by the Sky Blue Trust, Coventry City would like to take this chance to again reiterate that it is not liable for any costs related to the appeal against the judgement of the High Court made on Friday, July 14.
“The club has not been liable for any costs related to previous court cases either, and no club employees or directors are working on the court appeal.
“We remain focused on the day to day running of the club, and this is unaffected by court action taken by the shareholder and creditor-investor of the football club.
“The Sky Blue Trust is correct in their statement that ‘Otium Entertainment Group trading as Coventry City Football Club’ is the company name for Coventry City Football Club.
“This is made clear on our website under ‘Company Details’, which is on the footer of each page online, and on many publicly available documents and contracts. Many clubs have a different company name to their playing names, and we are no different and this has never been under dispute.
“The club continues to strive to build relationships with supporters groups including the Sky Blue Trust, the board of which enjoyed a positive first meeting with club chief executive Dave Boddy recently.
“We look forward to further such meetings, and continuing to make arrangements with the Trust for Manager Mark Robins to appear at a forthcoming open meeting alongside maintaining dialogue on other issues and improvements we can make by working together.”
What the Trust presented to back up its claims
- All complainants including OEG are joint and severally liable for the costs of any legal action. Other joint complainants can give assurances that this will not happen but that is not a binding legal position. SBS&L has no income and ARVO are based in the Cayman Islands.
- Coventry City Football Club is the trading name of Otium Entertainment Group Ltd. OEG is a legal entity, CCFC is not.
- OEG are registered at Companies House as a legal entity CCFC is not.
- OEG owns the English Football League (EFL) share, CCFC does not. OEG therefore has the legal right to trade in the EFL as CCFC.
- The trademark CCFC is owned and operated by OEG.
- All financial information, balance Sheets etc. for ‘the club’ are filed as OEG not CCFC. CCFC files no accounts either at Companies House or at the EFL.
- All assets are owned by OEG (including players). ‘CCFC’ or ‘the club’ is simply a name.
- Otium Entertainment Group will be the entity recognised by HMRC for the purposes of VAT, PAYE & Corporation tax. CCFC is not.
- All turnover, grants, player sales etc are receivable by OEG not ‘CCFC’.
- The training ground is owned and operated by OEG not CCFC.
- A professional football club is the operation of football and football financial activities including the sales of matchday tickets, sales of players and the payment of football related & other expenses. All completed in this case by OEG.
You can read the full Trust statement on its website
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(Image: ccfc.co.uk)
For more on this story go to: http://www.coventrytelegraph.net/news/coventry-news/coventry-city-fans-group-club-13722700
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