Sports Direct boss Mike Ashley buys Coventry's CBS Arena
Ashley's Frasers Group has taken over the lease of Coventry City Football Club's home ground.
It comes after the companies behind the Arena's operation were placed into administration.
The sportswear tycoon's retail group secured the CBS Arena lease after the appointment of administrators paved the way for the completion of its £17 million purchase of the stadium operators' business and assets.
Earlier this month, Arena Coventry Limited, Arena Coventry (2006) Limited and IEC Experience Limited, announced they had applied for administration but that the CBS Arena would remain open.
The approval of administrators by a specialist judge in London on Thursday was made despite a last-minute bid by lawyers representing local businessman Doug King to delay court proceedings to allow for consideration of his potential rival offer of £25 million.
The court proceedings come the day after the Sky Blues' owners Sisu Capital agreed to sell a majority 85% stake to Mr King in a deal which will leave the club debt free.
The High Court was told that, on appointment, administrators sought to "effect a pre-packaged sale of the companies' business and assets to entities controlled by Frasers Group plc", with the deal covered by an "exclusivity" agreement.
Making the administration orders, Insolvency and Companies Court Judge Sebastian Prentis said that the Frasers Group deal was the only "viable prospect" to prevent the group of companies "entering immediate insolvent liquidation".
Judge Prentis explained to the court that an on-hold deal between Frasers Group and the CBS Arena operators had already been signed and would be completed upon the companies entering administration.
He said: "It is the bird in the hand, and more than that, it's the product of many months of trying to find financial support for the group.
"It's the only, on this evidence, viable prospect for this group not entering immediate insolvent liquidation".
The judge said he respected the "ardour" of Doug King's offers, which included potential funding to keep the companies operating in the short term, but added he did not consider there was "enough substance" in what his lawyer had said in court "to allay even the immediate fears over how this group can continue to trade".
A spokesperson for Frasers Group said: "We are delighted with the acquisition of the CBS Arena which will complement the Group’s existing portfolio of brands and investments. Through the acquisition, we are pleased to have been able to secure a long term future for the Arena, protecting jobs and supporting the local community. In particular, we are looking forward to working with Coventry City Football Club."
A spokesperson for the Coventry Building Society Arena said “We are delighted that Frasers Group have acquired the arena. This will see the doors of this flagship venue remain open and continue to play a strategic part in the City of Coventry’s economic tourism plan. It is a great result for everyone who uses the venue for business, sport, and music as we now can continue with what we do best and that’s providing hospitality at is best.
“We would like to thank all of our staff, suppliers and tenants who have worked so hard to ensure that it has been ‘business as normal’ during the past weeks. Our thanks also go to our key stakeholders, Coventry City Football Club, Delaware North UK, Coventry City Council and Coventry Building Society, for their ongoing support and collaboration.”