Ricoh Arena takeover bid: Rugby club Wasps bid £30m...
By Simon Gilbert, Coventry Telegraph
October 2 2014
Coventry stadium. Timetable drawn up by Coventry City Council which could see deal agreed by Tuesday
The deal for Premiership rugby side Wasps to take control of the Ricoh Arena would be worth around £30million, it is understood.
A timetable for the deal to be completed has been drawn up and Coventry City Council aims to vote on the deal by the time of the next full council meeting on Tuesday.
It is understood the deal would see a Wasps-led consortium take a 90 per cent stake in Ricoh Arena operating company ACL - jointly owned by the Alan Edward Higgs Charity and the council.
Finer details are yet to emerge, but the council would retain a ten per cent interest in ACL and around £1m of an existing £14.4m loan from the council to ACL would be written off as part of the deal. The rest of the council loan would remain in place to be paid off by Wasps over an agreed time period.
It is also understood the deal would see the council purchase the charity’s shares in ACL before selling them onto Wasps - although it is not clear if the charity will make its money back on the £6.5m it paid Coventry City FC for its shares in ACL back in 2003.
This move would circumnavigate a contractual clause which could potentially still entitle the Ricoh’s current sporting tenants, Coventry City, to ‘first option’ rights on the charity’s shares in ACL.
The deal could also include an investment in stadium upgrades and an arrangement with the consortium around the stadium’s naming rights - understood to be up for renewal next year.
Frustration is growing among councillors about the lack of information being made publicly available and there is internal disagreement about the potential deal within both the controlling Labour group as well as the Tory opposition.
Both political parties are set to discuss the deal on Monday to decide how to vote at full council and it is understood there is likely to be double-figure opposition to the move from some of Labour’s 43 councillors.
Council leader Ann Lucas is thought to be pushing for the deal on the advice of council officers, but other councillors feel the deal is being rushed through and should first be offered to Coventry City FC.
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Will the Wasps consortium allow COVCFC to still play at the Ricoh. The figures dont add up the council are writing off £1m of their loan to ACL and rest £13m will be paid off in instalments by the consortium-do they really have the money to complete after all despite a new investor falling crowds and financial constraints at Wasps dont auger well.
But no doubt the Council have done their due diligence!