Crisis at Coventry
Just days after the Birmingham Mail reported, “Birmingham & Solihull Rugby Club have taken a significant step away from the financial problems that threatened to put them out of business.
The Sharmans Cross outfit have received the green light from the Rugby Football Union management board to set up a new company and retain their place in the Championship.
The ‘phoenix’ operation, which has been funded by local backers, was signed off at a meeting of the governing body yesterday and Bees are now free to complete their league and cup campaign.”
Full story www.birminghammail.net
The financial blight pervading modern professional rugby has shifted down the A45 to the Butts Park Arena.
Yesterday afternoon news dramatically broke that Coventry had been put into creditor voluntary liquidation www.companieshouse.gov.uk
by their owner Andrew Green.
A statement issued by Green said,
“It is with great regret that Coventry RFC Limited has announced today that it has taken the decision to close the club. Over the past three years the club has tried to overcome many problems and set itself a secure future, unfortunately due to many issues, some inside and some outside of its control, this has not been possible.
The club, like many other sporting organisations, has struggled as a result of the changing economy; however the club has been involved in complex legal problems and as a result doesn’t even have a lease to be at the Butts Park Arena. This situation has arisen despite promises and assurances from various financial organisations to provide the club with a lease after action was taken over a year ago to resolve the problems.
The club simply cannot carry on with such an uncertain future. The club has debts and creditors that it has a responsibility to pay and has carried on because of promises and solutions they would bring. Unfortunately and unlike most companies the club doesn’t have any options to re-finance despite several interested parties/investors offering funding. This is because it doesn’t have a lease for The Butts Park Arena, 8 acres of public land that was given to the club for its financial future some 6 years ago by Coventry City Council.
This is a very sad day for rugby in Coventry; however the club just can’t ignore the present situation regarding its debts and creditors.”
The Coventry Telegraph reported,
“The Telegraph understands last-ditch efforts by rebel club officials are under way in the hope Friday night’s Championship game against Bedford goes ahead.
The club could face exclusion by the game’s governing body the Rugby Football Union if any scheduled league game is not played.
The immediate future of the 135-year-old club seems perilous, but president Peter Rossborough and members of the club’s advisory board have been in close contact with the Rugby Football Union over recent weeks with the intention of putting a rescue package in place.
Officials are still frantically examining their legal options in the hope of a dramatic eleventh-hour formal take-over and financial agreements to save the club.”
Peter Rossborough is due to meet RFU CEO Francis Baron, management board chairman Martyn Thomas and RFU company secretary Karena Vleck this afternoon.
The Coventry Telegraph, in a follow-up piece, added this statement from the RFU,
“Our wish is to find a way in which Friday’s game can go ahead. If it doesn’t go ahead, they (Cov) would not be automatically expelled from the union. There would be, if required, a disciplinary process but there is no mandatory process for missing a game.
“If it didn’t happen, our disciplinary officer would look at the circumstances. The sanction could range from nothing to bringing the game into disrepute, if it was felt they behaved badly, but that is purely hypothetical.”
The Daily Telegraph has today reported that Green`s decision to close the club came following a winding-up petition received from the Inland Revenue to the tune of £400,000 in unpaid tax.
The newspaper continued,
“Players were ordered not to turn up for training on Tuesday and directors were told to lock up the Butts Park Arena ground, which is not owned by club, with all staff sent home.”
Green`s move is the latest incident in a long-running saga of financial woes at the Midlands club. Just over a year ago the club fought off the threat of relegation from Level 2 following a newspaper campaign raised £50,000 to keep the club afloat after Green had placed them in administration.
The Birmingham Post reported at the time that the club had debts of more than £700,000.
Full story www.birminghampost.net
Ten years ago Coventry controversially took over Bedford Blues as the Goldington Road club struggled with crippling debts. The Midlanders took over the contracts of the Bedford squad and bought their licence to play in the Premiership in what turned out to be a short-lived and acrimonious deal.
Full story http://www.scrum.com
At the time Coventry chairman Keith Fairbrother said,
“Opportunities present themselves from time to time and when they do you have to seize them. Bedford were unable to pay players and staff last Thursday and the players were on the verge of going on strike.
"We paid their wages so that the match against Saracens would be played. The club was going under and we effectively saved it."
Full story www.cwn.org.uk/sport/rugby
But by May 2001 Coventry were in receivership and pinning their hopes on a move from Coundon Road to the Butts Park Arena to save themselves.
At the time Fairbrother commented, “ Bryant Homes have the first option to buy Coundon Road, subject to planning consent to build houses on the site. In the meantime we have agreed in principle to buy back the ground from The Receiver.
"We are awaiting the necessary paperwork to be completed and we shall be playing our matches at Coundon Road until the new stadium is ready," said Fairbrother.
"It means we shall have more time to get the financing into place to convert The Butts Stadium. The new ground's capacity has been downgraded to 6,000, but it still falls within the minimum figure laid down by the RFU for clubs to be eligible to play in the Premier Division.”
Full story www.cwn.org.uk/sport/rugby/coventry-rfc
If a deal can be struck and Coventry are allowed to continue playing they will almost certainly join the Bees and London Welsh in suffering a points deduction which would consign them to the relegation play-offs.
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