Coventry City Council have put a net value of nil on Arena Coventry Limited, the company which runs the Ricoh Arena.
A council spokesman told the Coventry Telegraph's Simon Gilbert: "The value of ACL is dictated by an assessment of the revenues that the business can generate as a going concern on the market.
“This is affected by a range of complex matters including ACL’s existing business plan, relationships with and intentions of the Higgs Trust and the football club and any further proposals relating to surrounding development land owned by the council.
“These factors lead to significant uncertainty as to the valuation of the investment.
“A previous externally commissioned report on the value of the Arena’s assets has been used to inform the value of the Council’s investment in ACL within the Council’s 2012/13 accounts.
“Although the report indicated a positive overall value of the business, this was impaired to the same value of the loan in ACL’s accounts.
“In effect, the value of the business has been judged to be neutralised by the value of the outstanding loan and so taken together provide a net nil value.”
Full story: http://www.coventrytelegraph.net/news/coventry-news/coventry-city-council-values-ricoh-7051198