Coventry City owner SISU have agreed to sell a majority 85% stake in the Championship club to local Stratford-based businessman Doug King.
The club say that the deal, subject to English Football League approval, will clear all the Sky Blues’ debts.
Coventry say the club have also made a late bid to buy the CBS Arena.
Arena Coventry Limited, who have operated the stadium since it opened in 2005, is expected to enter administration on Thursday.
Former Newcastle United owner Mike Ashley’s Frasers Group is the preferred bidder for ACL.
London-based hedge fund SISU rescued Coventry from being wound up when they took over the club with 20 minutes to spare in 2007 – but the past 15 years have not always been the smoothest ride.
A long-running row over ground rent twice forced the Sky Blues to seek temporary groundshare homes outside the city, first at Northampton in 2013 and later followed by two seasons with Birmingham City before returning to Coventry in 2021.
SISU chief executive Joy Seppala said: “This is a fantastic moment for Coventry City – and the city. I know that Doug has long been an admirer of the Sky Blues.
“He shares our ambition to deliver the most successful football club possible, to climb the football pyramid, and invest both on and off the field.
“The sale of the CBS Arena does provide short-term uncertainty and with Doug on board we intend to set out a robust bid for the stadium which, if successful, will provide a platform for long-term success.”
Former Loughborough University mathematical engineering graduate King, who has a background in trading grains, non-grain feeds and petroleum, is chief executive of Stratford-upon-Avon-based oilseed processing facility Yelo Enterprises, who have invested more than £70m in the region.
He previously co-founded investment firm RCMA Capital LLP – which has overseen investments of more than $400m (£337m) – and of which he remains majority owner.
More to follow.