In 2010 we'd mortgaged the ticket sales and still run out of money, now we've got **** all ticket sales to mortgage.
I don't think they could do what Bartlett did, back then the Premier Club was run by the SMC and he took a mortgage out on the corporate income. The Allams switched the Premier Club from the SMC to City (and changed the name to Premier Tiger ffs) to avoid an arrangement that saw some of the corporate money going to Hull FC. For years they've been running some of the football club costs through the SMC, making the debt there artificially high, I wouldn't be at all surprised if they decided to bust it at some point.
I was never sure why they were running the debts up so high at the SMC, the debt is to them, but maybe they're just planning on getting all their cash back via the club and are happy to write off the debt at the SMC. Or maybe they just want to **** it over to piss off the Council, or maybe they still think the debt will be paid when someone buys the club, or maybe it's something I've just completely overlooked.
The lease ends and the stadium goes back to the Council. The Council could then decide what rent to charge Hull City and what rent to charge Hull FC. The Council could re-open the Airco Arena and throw out the academy. Hull City would then lose the monies from the FA/Premier League. I'm not sure if the SMC gets the profit from the concessions, if they do, those will go to the Council as well. It would leave a huge hole in Hull City's balance sheet as well, especially if there is no chance of getting promoted back to the Premier League. They could end up being disqualified to act as company directors, especially if the Council complains about them running up debt to avoid their duties under the terms of the lease agreement. I don't think the Allams are that stupid.
I doubt Bartlett or the Allams would leave themself open to been disqualified as a company director obi.
Agreed. As far as I'm concerned the Allams had the golden goose and let it escape. Some was genuine misfortune the rest they brought on themselves. They and us are now paying the price and its a heavy one. The club is dying and the cash cow that is the Premier League is running dry for them.
Perhaps its the high debt run up by SMC that has resulted in the TV's never being switched on on the concourse in the North Stand. First you have all the hassle of membership, the slow flow through the turnstiles, the dross on the pitch, a £4 pint of piss looking blankly at the breezeblock walls because the tv's aint on at half time, freezing your bollocks off.......
And can we revert back to English? Can they transfer debt to SMC and walk away? Can anyone stop them doing this? How do we make sure 'anyone' knows what they are up to and stop them?
When you run a group of companies, you can do some jiggers pokery to make one part look better than another, but no, you can’t just transfer loads of debt from one company to another. This isn’t news, the situation has been the same for years and nobody on here knows exactly what their intentions are with either company.
Yes they can transfer debt to the SMC. They can do it in two ways. First they could get the agreement of the person/company Hull City owes the money to that the debt is transferred legally to the SMC. Secondly the SMC could borrow money from a third party in the name of the SMC and pay that money to the person/company Hull City owe the money to. They can walk away from the SMC at anytime. They just hand the lease back to the Council, or if the council refuse put the SMC into liquidation. They would then lose control over the ground and would face a rent increase if they kept Hull City. It is doubtful they are up to anything. They are owed £60 million and if they don't get it all back by the end of next season they will be up screwed as the club is dying and they haven't a clue what to do to reverse that. At the end of December 2017 nothing was paid of their debt of £60 million. We'll find out how much has been paid off when Hull City's accounts are published later this year.
There is no reason or need to transfer any debt to the SMC. It already has enough debt to more or less make it insolvent. Allamhouse will get their money back via the football club. The SMC going into administration at some point is a very real possibility.
They have a clue what to do but have no intention of doing it obi. They will get their money back without a doubt. How they leave the club will be interesting. If the old man manages to live another year then I think the club will be okish. If he goes I can see Ehab deliberately ****ing it up when he leaves, with his pockets full of cash.
