Coventry City Football Club (Holdings) have served papers at the High Court and with Coventry City Council.
The papers have been served to challenge the £14m bail out of Arena Coventry Limited by the City Council which the club owners SISU feel may have been unlawful in its use of public funds.
In a statement, SISU owned Coventry City Football Club (Holdings) confirmed an application had been made to the High Court to “to determine whether the council acted unlawfully in its use of public funds to financially support ACL and in its actions towards Coventry City Football Club in relation to the dispute with ACL.”
Also in the statement was the paragraph: “In the meantime, we are committed to reaching a negotiated solution to the dispute with ACL. If ACL were prepared to meet with us, we would retain hope of reaching an agreement that will allow the club to continue playing at the Ricoh.”