SCG Meeting

28.05.13 !

Present: Steve Brown, Jan Mokrzycki, Jim Brown, Pat Raybould, Pat Abel, Steve

Barnett, Kevin Heffernan, Dan Walker, Tim Fisher, Lee Corden, Andy Powell, Darren

Davies !

Recap from Tim Fisher – On 13/3/13 an Administration order was submitted by ACL

to be heard in the High Court on 22/3/13. SISU placed CCFC Ltd into Admin on

21/3/13 and contracted Paul Appleton from Rubin as administrator. !

There are no more than 6 creditors to CCFC Ltd, those being CCFC Holdings Ltd,

Sky Blue Sports and Leisure, ACL, ARVO, CCFC Academy, Coventry City Council. !

There is to be a creditors meeting on 29.05.13 where directors of the creditors

listed above will attend. !

On 31.5.13 all bids are to be submitted to buy the assets/liabilities of CCFC Ltd. In

terms of the requirements of a bidder, the process is: !

• KYC (Know your customer) – where you essentially prove who you are

• Proof of Funds – where you prove you have the appropriate level of funds

• Formal Bid

• Decision by Administrator on successful bidder !

The football league currently has the Golden Share (License to play in the football

league) and will decide on apportioning membership at the point at which Ltd is

bought. !

As far as Tim is concerned, all bank accounts are in holdings and there is nothing in

Limited – in his view, Administration won’t come to anything but will have cost a

lot of money. !

Kevin Heffernan stated that as he is aware, the player’s contracts are in Holdings

but their licenses are in CCFC Ltd. In the last set of accounts (some dispute over

the date, KH stating March 2013, Tim Fisher stating May 2012) the assets listed in

the company were: !

• Lease to play in the Ricoh

• Licenses for Players

• Football League membership (‘Golden Share’) !

Tim restated that all the economic benefit of membership to the football league

resides in CCFC Holdings. Tim stated that the lease was in Ltd, but that the

licenses for players are in Holdings and the Golden Share is with the football

league. !

Steve Barnett asked what would happen if someone other than SISU bought CCFC

Ltd. Tim said that the buyer would have to make an offer to the creditors and that

the administrator’s job is to protect the creditors and if possible, keep the

company going. The administrator makes his decision based purely on the numbers

and the best deal for the creditors. !

KH asked why SISU created 4 companies to run the club. Tim replied that they

haven’t, that some were already established and that it allows SISU to fund the

club in different ways, i.e. equity, loans, etc. !

KH stated he felt personally let down by SISU and that he thought they were going

to be CCFCs saviours when they arrived. Tim challenged why he felt let down given

how much money SISU had invested. !

Andy Powell said he felt that the reason fans felt let down was because when SISU

arrived we were mid table championship with a decent playing squad and a home,

and now we are mid-table league 1, £70m in debt, with a league 1 playing squad

and no home.

Tim said SISU were disappointed with the journey the club has taken. They bought

into a vision that the club would be restructured, led by Ray Ranson, to invest in

the club and get promotion to the premier league. !

Steve Brown changed the subject towards the fear of the club playing matches

outside Coventry and asked about getting a mediator to bring the 2 sides together

and ensure CCFC stay in Coventry. !

Tim said he had been told that negotiations were at an end, and has a letter from

ACL which says there will be no more negotiations. !

KH asked what is to prevent SISU publically stating they want to negotiate.

Steve Brown asked whether SISU remain committed to CCFC, and if so, why they

are looking to take the club outside Coventry. If SISU were really committed, they

would do a deal. !

Tim responded by saying that by moving outside of Coventry they are trying to

preserve the club. !

Steve Brown argued that this action was killing the club, and reiterated his desire

for Joy Seppala and Martin Reeve to meet and agree a deal. !

Tim said that ACL don’t recognise Holdings, they don’t even recognise Tim Fisher

anymore. They won’t deal with Holdings as they see the club as CCFC Ltd. !

Steve Brown and Steve Barnett both suggested the personalities involved were a

problem – a case of Mutton vs. Fisher. Andy Powell felt it was more like Council vs.

Big Corporate, and that the problems were much greater than Tim Fisher. !

Tim said that the long term vision is that the club own its own stadium with all its

own revenues. The prospective site is technically outside Coventry but basically

it’s in Coventry it’s so close. He again mentioned that he felt fans could buy into

that long term vision, but acknowledged that the journey from here to there is

painful. !

Steve Brown asked if a short term deal could be done to keep the club at the Ricoh

in the interim. !

Tim said he offer ACL a 3 year deal to play at the Ricoh but they refused. !

Steve Brown felt that if a 3 year deal was done that the new stadium wouldn’t

need to be built and that the 2 may be able to settle differences. He stated that

his opinion is that SISU want out.

Tim Fisher said Steve was right, but that the club needs assets to be able to sell. !

Both Kevin Heffernan and Steve Brown again called for mediation, suggesting John

Beech as a suitable candidate, although there was a fear that the opportunity for

mediation may already have passed. !

Steve Brown asked how many fans Tim Fisher and Dan Walker felt they would get

next season if we played outside the city. !

Dan Walker suggested 3000, to which the unanimous response came that there was

no chance. !

Steve Bennett asked about timescales on notifying the Football league on where

CCFC will play home matches next season. !

Tim said that the administrator will have received bids by 31.05.13 and then will

make decision on bids. Ultimately, the football league wants to fulfil the fixtures,

but the club are in total commercial limbo. They are owed about £1m by the

football league for various things such as prize money, player transfers,

appearance fees, all of which are withheld at present. The club is in financial hell

right now. !

Jim Brown asked whether the football league could award the ‘Golden Share’ to

one of the other bidders if they are successful in purchasing the CCFC Ltd. !

Tim replied that Yes, that was possible. !

Steve Brown asked what the commercial prospects were for the next 3 years. !

Tim felt if the club were successful then attendances (at a ground outside the city)

might be 6k, if unsuccessful it might be 2k. We have had to cash flow against those

numbers. In the championship revenue was £11m; it dropped to about £5.5m in

league 1. Last season the wage bill was about £4.25m, this year it will drop to

about £2m. In comparison, Clubs such as Wolves, Bournemouth and Swindon had

much higher wage bills. Whilst there is massive commercial uncertainty, Joy

Seppala is prepared to underwrite anything in the interim. Tim said that the major

impact will happen the season after next (2014/15) if we aren’t promoted. !

Dan Walker explained that he club had done a survey which was sent to 8,500

people, of which 3115 responded, and this is what they have based their

projections on. Again, most disagreed that with Tim and Dan’s attendance

projections and felt that the consensus amongst those groups they represented was

that most wouldn’t travel outside of Coventry to watch home matches. !

Kevin asked about the status of the Academy. !

Tim said that Peter Knatchbull-Hugessen had locked the academy out of the Alan

Higgs centre. The football league match fund the Academy. Currently it has

category 2 status, and that is based on the structure, people, experience, etc.

Category 3 is a centre of excellence. In Category 2 you play sides like Aston Villa,

Sheffield Wednesday. In Category 3 its Hinckley United. Administration may force

us back into Category 3. !

Kevin asked why we couldn’t move back and Tim reiterated that Peter Knatchbull-

Hugessen won’t allow it. !

Steve Brown called for Joy Seppala to face the fans and explain the situation and

search for a deal with ACL. !

Tim said that if a SISU subsidiary is successful in a bid to buy back CCFC Ltd and

reform the two companies again, that they will offer to talk to ACL. !

Kevin Heffernan formally requested that Joy Seppala meet with the SCG and other

groups. !

Tim stated that he would ask her. !

Jim Brown asked Tim to explain his reasons behind called the Fans Forums. !

Tim replied that he wanted a chance for the fans to listen to him and form an

opinion based on that. !

Jim Brown stated that he understood the long term goal (the club owning its own

ground) but did not agree with the short term plans, and asked if Tim felt he could

turn it around in terms of fans perceptions. !

Tim stated that is isn’t a popularity contest and that he was prepared to do what it

takes for the club to survive. If the club reforms (SISU buy back CCFC Ltd) then

they would talk to ACL. But first, let’s get through administration. !

Meeting ended with no date set for the next meeting.

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