Jaguar drops stadium naming plans

A football club's new stadium will not now be called the Jaguar Arena because of the 'rapid deterioration' in the luxury car maker's business situation, it emerged today.

Jaguar signed a five-year deal, reputed to be worth between £5m-7m, with Coventry City to sponsor the 32,000 seat stadium.

The Coca-Cola Championship side, also known as the Sky Blues, will move there from their current home at Highfield Road at the start of the 2005-2006 season.

But the company announced today they would no longer be the 'naming sponsor' of the stadium, although their involvement will continue as backers of the adjoining exhibition halls at the £113m leisure complex.

The statement comes two months after Jaguar said they would be ending car production at their historic Browns Lane site in Coventry and scaling back costs elsewhere.

Unions claim the plans could see more than 1,000 jobs lost. At the time, the company denied speculation that the plans would affect its sponsorship of the arena.

However today officials said their agreement with Arena Coventry Ltd, the venture company which will manage the state-of-the-art facility, had changed to take into account the 'rapid deterioration of Jaguar's business situation'.

Bibiana Boerio, the managing director of Jaguar Cars, said: 'The Arena is a significant development for the city and community and it is right that Jaguar will be involved in some way. We will continue to maintain a strong presence in Coventry and to continue supporting the community in many ways. The Arena is an exciting development that will draw business and investment from far and wide to this city.'

Paul Fletcher, chief executive of Arena Coventry Ltd, said he was pleased Jaguar was still involved with the project.

He added: 'We are delighted to have been able to reach an agreement with Jaguar for their support in view of their difficult business situation and that this world renowned company will continue to fly its flag locally.

'The Arena remains one of the most exciting and prestigious sport and leisure developments in the country and will provide a unique facility to the city and the region as a whole.

'Everything is in place and on schedule for the opening of the development in the summer and we are confident that we will be in a position to announce a new naming rights partner in the not-too-distant future.'