Why SISU buying into the Arena might be good for Coventry City?
Like them or loathe them SISU own our beloved club.
Their current talks with the Council, and one would assume the Alan Higgs Charity about getting a half share in the Arena Company Ltd and the associated land around it, seems to me to be a positive move.
There are a number of reasons why I believe this.
Firstly we will be able to reduce our yearly rent.
Secondly we will benefit from the profitability of the Arena, any income at present is welcome. The Arena has a turnover of around £17 Million with only 20% linked to the football club and makes a small profit.
Thirdly as the fair play rules are in place, our income will be increased and therefore the proportion we could/can spend on our playing budget will be greater.
Fourthly it makes Coventry City a better option to any potential buyer or investor. Currently Coventry City is a brand with no major assets (other than the players). With ownership of half the Arena Company, then it is far more attractive to potential buyers or investors.
I know that some people think I am backing SISU with the above comments. However the truth is that I don't want them here anymore than the vast majority of the fans do.
I do however fear for the future of the club, getting more revenue into the club is a must if it is to survive.
There are a number of interesting questions thrown up by it all. Firstly where are SISU getting the money from? Secondly why have they taken them so long to do this and thirdly is this why they are delaying publishing the budget and thus keeping the embargo in place?