Council’s loan was predominantly motivated by commercial interests and did not constitute state aid


Re: R (Sky Blue Sports & Leisure Ltd & Ors) v Coventry City Council [2016] EWCA Civ 453

Whether the decision by Coventry City Council to approve a loan of £14.4 million to Arena Coventry Limited was contrary to state aid rules under TFEU, art 107, and therefore not lawful without notice to the EU Commission, in accordance with art 108(3). Held: The appellants had failed to demonstrate that a rational private investor in a comparable situation to the Council would not have granted the loan.

Rhodri Thompson QC and Nicholas Gibson were involved in this case.