Coventry City: CBS Arena operating companies to enter administration
- Published
Former Newcastle United owner Mike Ashley is the preferred bidder for the ground
The operating companies that run the Coventry Building Society Arena have applied to enter administration.
Arena Coventry Ltd (ACL), Arena Coventry (2006) Ltd and IEC Experience Ltd expect administration orders to be made "in the forthcoming weeks".
BBC CWR reports that former Newcastle United owner Mike Ashley is the preferred bidder to buy the stadium.
Coventry City were allowed to play Tuesday's home Championship game against Blackburn Rovers at the ground.
A spokesperson for Arena Coventry Ltd said: "The companies and the proposed administrators from FRP Advisory have run an accelerated sales process to sell the business and assets of the companies and have identified a preferred bidder.
"The Arena will continue to trade as normal. We would like to thank all the working parties involved in helping the companies get to this stage and we are delighted that the doors will remain open to this flagship venue."
The Sky Blues are due to play two more fixtures at the CBS Arena before the break for the World Cup in Qatar - against Wigan and QPR on 8 and 12 November respectively.
And following the 1-0 win over second-placed Blackburn, manager Mark Robins said he hoped they would go ahead as scheduled.
"Hopefully we'll be here now until the World Cup break. I've got to err on the side of caution but I think that's the feeling at the moment," he told BBC CWR.
"Then, hopefully things will be resolved while we don't have to play. It gives them time to get things sorted out, whichever way it goes.
"Let's hope it gets sorted out for the best and we can put any uncertainty behind us because it doesn't help."
Ashley, 58, sold his stake in Newcastle to the Saudi Arabia-backed Public Investment Fund for £305m in October 2021 - having paid £134m for the club in 2007.
He was in charge at St James' Park for 14 years, during which their best finish was fifth in the Premier League in 2011-12.
Ashley was reportedly interested in buying Derby County after they went into administration in September 2021, but the now League One club was bought by businessman David Clowes in the summer.
'Much-needed stability'
Coventry City Council own the freehold for the stadium, which was known as the Ricoh Arena when the Sky Blues first played there in 2005.
It was acquired by Wasps rugby union club in 2014 but they went into administration last month and have been suspended for the rest of this season and relegated.
However, their administrators have accepted an offer to buy the club from a consortium including members of Wasps Legends.
Council leader George Duggins told BBC CWR that the stadium would continue to operate over the next few weeks, so Coventry City can fulfil their fixtures.
He said that allowing Wasps to move into the Arena eight years ago was "the right thing to do" at the time, but the council was now focused on securing its future.
The CBS Arena, formerly known as the Ricoh Arena, was opened in 2005
Duggins declined to comment on Ashley specifically, but added: "I would hope the process is robust enough and that the individuals who have come forward are of a mind to share the vision that we have as a council, and a city, to take the business forward and bring much-needed stability.
"We will work with and welcome whoever the eventual owner is."
The English Football League said it would "remain in regular contact with Coventry City as it seeks clarity for fans and visiting clubs regarding upcoming fixtures".
The EFL had previously stated it was "supportive in principle" of the Sky Blues making a temporary move, should it become necessary, to "avoid further disruption to the fixture schedule".
Coventry City have had two spells playing home games away from the Arena in the past, ground-sharing at Northampton Town and Birmingham City because of rent disputes.
'Preferred bidder blow to Sisu' - analysis
BBC CWR political reporter Simon Gilbert
Multiple sources have confirmed that the preferred bidder for the Arena is former Newcastle United owner Mike Ashley.
I understand there has been no contact between Ashley and Coventry City owners Sisu - suggesting his interest, at this stage, is purely in the Arena.
The news of a preferred bidder will be a blow to Sisu, who were preparing to make an offer if ACL entered an open administration process.
The hopes of Sky Blues fans that the football club and CBS Arena would be reunited under the same ownership now seem distant once again.