Sisu, the owners of Coventry City Football Club have lost their appeal at the High Court over claims that that the council's £14.4m loan to ACL, the company jointly owned by the council and the Alan Higgs Charity, amounted to state aid.
The three High Court judges, Justices Tomlinson, Treacy and Floyd handed down their judgment during a brief hearing. The appeal came about after a 2014 High Court decision by judge Hickinbottom, which ruled Coventry City Council had not acted unlawfully when it made the loan to ACL back in January 2013.
Coventry City council, through current leader councillor Ann Lucas and Council Leader elect, Councillor George Duggins said, “We are delighted that the appeal judges have fully supported Judge Hickinbottom’s original ruling and have dismissed the appeal outright.
“We have always been confident we could robustly defend our unanimous and cross party decision by all councillors at Full Council in January 2013 to support the new loan arrangement to ACL. The decision was taken to protect the interests of Coventry taxpayers and secure the future of an important sporting, cultural and economic asset for the city.
“We have taken no pleasure in finding ourselves in court defending our decision and in having to spend council taxpayers’ money defending a series of legal challenges from SISU, although we are pleased that SISU has been ordered to pay the Council’s costs.
“We urge SISU to abandon further costly, lengthy and pointless legal proceedings and focus on working with key partners to develop a sustainable business plan for the future which puts the football club and its success at its heart.”
Coventry City Footbal Club said, "We’re aware of the judgement passed down at the High Court today.
“We’d like to assure supporters that this outcome today does not affect the day-to-day operations of the club. CCFC remains focused on supporting manager Tony Mowbray and his management staff so that we can build a strong squad which will challenge for promotion for the upcoming 2016/17 season".
The club will not make any further comment at this time.
Sisu are expected to make a statement later.