Krasner - Build A Team Not A Stadium

Last updated : 10 March 2015 By Covsupport News Service

Gerald Krasner, partner at insolvency experts Begbies Traynor has said that Coventry City's owners should be building a team not a new stadium.

Speaking to the Coventry Telegraph's Simon Gilbert, the former Leeds United Chairman said:  “This company is massively insolvent on paper. If you are insolvent and pay everybody, nobody cares. But if you go bust you can get things like wrongful trading and personal liability for the directors.

“The question is, how are this company with tens of millions on the balance sheet still trading?

“I don’t think this club can survive in League One. The income isn’t there and they have sold all of their expensive players. They are a club without assets and with a lot of liabilities.

“On the face of it, unless they get back into the Premier League, they are not going to get out of this problem.

“The rent is a lot cheaper than a lot of other teams. They have their priorities wrong. The priority should be to get out of League One.

“A new stadium is going to cost at least £35million. They should focus on building the team, everything should be based on that.

“Relying on academy sales is only realistic if you can lower fans’ expectations. Are they going to be satisfied with League One football for the next 10 years?

“I don’t think the club should settle for League One in the long term. But in the short term they might have to while they get everything right.”

More on this - http://www.coventrytelegraph.net/news/coventry-news/coventry-city-cant-survive-league-8803398