Coventry City facing administration

Coventry facing administration
© PA Photos
Coventry City are at risk of administration after the owners of its stadium took court action over alleged unpaid rent.

Coventry City could fall into administration after the owners of their stadium took the club to court over an alleged £1.3m in unpaid rent.

Arena Coventry Limited (ACL) has lodged a request with the High Court in London for the club to be placed into administration, a move that would see them docked 10 points.

"It is highly unfortunate that we have had to take this course of legal action. Had we not taken this action, then the alternative might have been catastrophic for CCFC," said ACL chairman Nicholas Carter.

"We are owed a considerable amount of money in rent arrears. While it is imperative that ACL takes action to recover these arrears and to stop the arrears growing, it is important for us to find a solution that can provide for the survival of the Sky Blues. Hopefully this action will ultimately put CCFC on a stable financial footing for the future."

Coventry's owners, hedge fund Sisu, are disputing the terms of the lease on the Ricoh Arena, but Carter is adamant that taking court action now could prevent the club from being liquidated.

"Following recent statements in the media from the CCFC's owners threatening the Club with liquidation, we are keen to stop this from happening. Our action prevents Sisu simply closing CCFC and walking away from the situation," he added.

"We are, of course, well aware that under the current Football League regulations, CCFC will face a points deduction and we will do everything we can to ensure that the case is heard by the High Court before the end of the current season.

"While this opens up the possibility of a 10-point deduction this season, the board believes this is better than leaving CCFC facing a much larger deduction at the start of next season."

The High Court will rule in the coming weeks whether the League One club is fit to continue trading.

Falkirk boss Steven Pressley on the touchline during a game with Rangers on September 21, 2011
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