Wasps have been given the green light for a 100% take over of the Ricoh Arena.
Coventry City Labour Councillors have agreed to back the sale worth £19.5m, following a meeting last night which started at 6.30pm and finished around 2am today according to the Coventry Telegraph's Simon Gilbert.
The Council will now vote this afternoon on this sale and Councillors will vote as their party orders with no free vote allowed and if it is approved, the Council will buy the Alan Higgs Charity share before selling the entire 100% to the rugby club.
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The rugby club will be given the green light to complete a 100 per cent takeover of Ricoh Arenaoperating firm ACL after Labour councillors agreed to back the sale at a full Coventry City Council meeting scheduled for 2pm today.
Councillors were locked in talks for over almost seven hours, until around 2am this morning, as council chief executive Martin Reeves and finance director Chris West briefed Labour's 43 and the Conservatives' 11 councillors on the details of the bid.
Following that meeting, the controlling Labour party have agreed to back leader Ann Lucas's wishes to proceed with the sale.
Councillors will not be given a free vote and will vote in accordance with their party, which means Labour's decision cannot be swayed by Conservative votes.
It has emerged the fee will now be nearer £20million rather than the £30m councillors were previously briefed on. Wasps will also be granted a 250-year lease as part of the deal.
Councillors were previously told the council would retain a 10 per cent stake in ACL – jointly owned by the council and The Alan Edward Higgs Charity. But it now appears the council are willing to walk away from operation of the venue.
The deal will see the council purchase the Higgs Charity's stake in ACL before it is sold on to Wasps in order to circumnavigate a potential clause which could still entitle current sporting tenant Coventry City FC to 'first option' on the charity's share of ACL.
The charity bought the 50 per cent stake in ACL from the football club in 2003 for £6.5m, but it is understood they will only receive £3million back as part of this deal.
It appears Wasps will take on the complete £14.4m loan from the council issued to ACL in January 213. Previously it was thought at least £1m of that loan could be written off as part of the deal.
The discussion and vote over the deal at full council later today is likely to take place in private with the council citing commercial confidential.
There are fears Wasps taking over the Ricoh Arena, and relocating to the city, could have a negative impact on Coventry Rugby Club and potentially prevent current tenants Coventry City FC from remaining at the stadium on a long-term basis. Although some have also spoken out in favour of the move.
Rumours former Coventry City chairman Ray Ranson had been involved in the Wasps takeover bid are understood to have been dismissed by council officers during last night's late-night briefing.