Coventry owners SISU have put a subsidiary of the club into Administration tonight, with speculation that the move will leave the club without a home ground.
The club are due to face landlords ACL in court on Friday to defend an Administration order. The move by SISU tonight to put, what a club statement says, is a non-trading subsidiary of the parent company into voluntary Administration is seen by many to be a move to deflect a potential points penalty from the Football League.
Sky Sports go as far as to suggest that the move will annul the club's lease on the Ricoh Arena, leaving the club homeless for their remaining games. ACL, who are owed over £1.3million in unpaid rent, have reiterated their belief that the stadium can continue to operate profitably without their main tenants with a string of high-profile concerts and events set to remain at the ground.
How the Football League will react to such action remains to be seen. They threw out attempts by Southampton in 2009 to avoid a 10 point penalty as they found that the company in Administration and the club itself were so interlinked that they could not be separated, incurring the penalty. They would also be concerned that the club, if it was indeed true, had no home ground and could impose further sanction.
ACL are reported to be taking legal advice on the situation.