Coventry City: EFL give approval for Doug King's takeover of Sky Blues
- Published
Doug King's takeover of Coventry City comes with the club 14th in the Championship
Coventry City's new owner Doug King has completed his purchase of a majority 85% share in the Championship club.
The deal, first agreed on 16 November, has now been given approval by the English Football League after the Warwickshire-based businessman passed their owners' and directors' test.
The club have said that the deal will clear all the Sky Blues' debts.
But it came too late to prevent City's stadium, the CBS Arena, passing into the hands of new owners.
King himself made a late £25m bid to also buy the stadium, which was up for sale after Premiership rugby union side Wasps, the ground's owners since 2014, revealed in October that they would have to go into administration.
But, when the Arena formally went into administration, it was ruled that Mike Ashley's reported £17m deal, including a £1.2m exclusivity payment up front to help keep the ground open for the Sky Blues to play home games in, should be allowed to proceed.
City did receive another serious offer to buy the club from energy drink company boss William Storey, but he officially withdrew his interest last Friday., external
"I am honoured and excited to be taking this club forward into its next chapter," said King. "To get this deal ratified in just over six weeks and over the Christmas period was a great effort from all involved.
"Already I have been struck by the enthusiasm of Sky Blues fans, with many personally wishing me well and I thank them for those sentiments. I am looking forward to the future of this great club and what we can achieve together."
While King is the now majority shareholder, having taken over from the previous owners, SISU will still have a small stake. But former City chairman Tim Fisher will no longer be involved. The club put out a statement, external to say that he has resigned as a director after 12 years on the Sky Blues board.
"Tim has been a figurehead at the club for a number of years and offered important advice and counsel to many," said Sky Blues chief executive Dave Boddy. "Having worked through difficult periods for Coventry City, he now leaves with the club in a far better place than he found it."
After successive promotions from the EFL's bottom tier in 2019 and 2020, Mark Robins' Coventry side are 14th in the congested Championship table, just four points outside a play-off place, but nine points clear of trouble - despite going three games without a win.
Coventry City first moved into the CBS Arena in 2005 following the sale of Highfield Road
Who is Doug King?
Former Loughborough University mathematical engineering graduate King has a background in trading grains, non-grain feeds and petroleum.
He is chief executive of Stratford-upon-Avon-based oilseed processing facility Yelo Enterprises, who have invested more than £70m in the region.
He previously co-founded investment firm RCMA Capital LLP - which has overseen investments of more than $400m (£337m) - and of which he remains the owner as majority shareholder.
The SISU years in Coventry
Previous owners SISU, part of the Otium Entertainment Group, will retain a 15% toehold in the Sky Blues - a relationship that first began in 2007.
The London-based hedge fund rescued Coventry from being wound up when they took over the club with 20 minutes to spare.
The past 15 years have not always been the smoothest ride, largely due to the fact that City have not been owners of their own stadium since leaving their old Highfield Road home, when it was sold for housing redevelopment in 2005.
A long-running row over ground rent twice forced the Sky Blues to seek temporary groundshare homes outside the city.
They moved first to Northampton in 2013 for more than a season, prior to Wasps being allowed to move in, later followed by two seasons with Birmingham City, before returning to Coventry again in 2021.
Even this season they were forced to play an EFL Cup home tie at Burton Albion when the CBS Arena surface was ruled unfit to play on following overuse in the summer because of Commonwealth Games rugby and pop concerts.
SISU director Joy Seppala, who remains on the Sky Blues board, said: "Coventry City's future is bright under Doug King's leadership.
"Enthusiasm, determination and commitment are precisely what this great club will have with Doug. I look forward to watching Coventry City go from strength to strength."
New City owner has 'greater willingness' to interact
Analysis from BBC CWR sport producer Clive Eakin
"When Coventry City announced that SISU had agreed to sell 85% of the club's shares it followed months of speculation that they might be ready to hand over to new owners - but the name Doug King had come from nowhere.
"That led to fans turning to search engines to find out who he is - and they will have discovered that he's the CEO of a Stratford-based rapeseed processing company who claim to 'lead the way to a sustainable future through innovation'.
"What concerned more sceptical supporters was the discovery that King is also the chief investment officer for RCMA, a hedge fund that shares a correspondence address with SISU.
"But what has already been apparent about the new owner is his greater willingness to interact than his predecessors.
"He has been seen at a number of matches home and away and spoken to fans. He was even among a crowd of just over 200 on a cold night to watch the Under-21s play a Birmingham Senior cup tie at Coleshill and spoke to more supporters there.
"He's been careful not to promise the earth but he has said he does have bigger resources than the previous owners with which to back up Mark Robins and the recruitment team."
Doug King (left) was at Monday night's Coventry City Under-21s Birmingham Senior Cup tie at Coleshill with chief executive Dave Boddy (second left)