Another Championship Club in serious trouble

Well, after the woes of Nottingham last season, London Welsh and Birmingham earlier this season, Coventry appear to be in all kinds of trouble.

A statement from the club owner issued earlier today said this:

Written by Andrew Green
Tuesday, 01 December 2009
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.

I know a lot of the guys at Coventry and personally, I really do wish them well. There’s clearly a major problem with the game if clubs like Coventry cannot carry on.  I guess we wait and see what happens next.

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  1. Sorry to see a tough holiday season in the Midlands.

    I guess that it should not be surprising that if a football team in the Premiership like Pompey can be in dire straits financially, I guess it should not be a shock to see rugby affected as well.

    • I know Nursedude, but difficult for everyone around at the moment. Dont think this will be the last club to have trouble. And the way the structure is, is that the impact isn’t what it could be. 15 points deduction doesn’t really mean anything as the bottom 4 will play off for relegation. Bottom doesnt automatically mean going down this year.

  1. Save our Championship clubs. « Six of one and half a dozen of t'other

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