Hasn't he always just guaranteed the money? He can walk away can't he and load it on the club. While he's trousered the Maguire money etc and the parachute money while reducing the wage bill and the size of the Playing staff.
New owner confirmed…
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The money is his, if it doesn’t get repaid, he loses it.
We’re also definitely going into a loss making position next season, if he doesn’t get out, he’ll be losing money every week, the same as pretty much every other Championship club that receives no parachute money.
No, he put cash into the club. There are no guarantees, it was pounds and pence, well the nearest equivalent, bank transfers.
From the 200 million pound plus we earnt from getting promoted last time he's reduced his loans by less than 30 million. The vast majority of the balance was used to pay the wages of the players Bruce signed. If he sells the club for 25 million he'll be out of pocket. Even if you include the interest and tax allowances taken since 2010.
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its a dead as a dodo news day folks, don't forget to tune in tomorrow for our flogging a dead horse special..
That’s why the old boy has been involved instead of his incompetent son. He knows they absolutely need to complete a deal.
Any buyer with a bit of acumen will also know this. The Allams aren’t in a position of strength. I’d imagine the sale price will fall well short of the asking price. There aren’t queues of people daft enough to buy a football club, particularly an overpriced one with alienated fans.
Any buyer with a bit of acumen will also know this. The Allams aren’t in a position of strength. I’d imagine the sale price will fall well short of the asking price. There aren’t queues of people daft enough to buy a football club, particularly an overpriced one with alienated fans.
Well this is a good point.
He might look to have lost money, but then it will reappear, as if from nowhere, without a penny of tax to be paid on it.
I've been told for years he had to do this or that with the money for the last four years and none of it happened.
I'll believe it when I see it.
They can continue to run Hull City if they want to. whether we'll be making losses next season depends on the wage bill. There are a significant number of players out of contract so are likely to be replaced with players on smaller wages.
The only question is how desperate Assem Allam is to sell.
I firmly believe that the club losing money is not the same as Assem losing money.
Which is why I don't believe Assem is or will lose any money. Could he have made more? Sure. But his personal net worth wont be affected negatively.
I could easily be wrong of course, finances confuse the hell out of me.
Of the money he put in he's still owed £60 million. He has had nowhere near that back in interest, management charges and use of tax losses. If he sells for £25 million in full and final settlement of that debt he will have put into Hull City more money then he's taken out, ie he'll have lost money. If he doesn't sell and we get relegated he stands to lose the lot.
All of which makes it a buyers market. Add in the potential turmoil on the foreign exchange markets around 11 December and we may not see a sale this side of Christmas.
This just might turn out that by fate he could be out of pocket to the turn of around £40M, which is the gift he implied he was giving to the area when he bought the club. It's funny in life that sometimes things just have a way of turning out as they should.
We simply don't know what he's had back, he could have taken over £20m in parachute money in July, leaving him able to get his money back even with a £25m sale.
I cant see them making a loss.
Sure, they may sell for less than they're owed. But then the difference will surely be taken on by the new owner as a debt and Allam will be a creditor until what he's owed is repaid?
I dont think we'll be fully rid of them for a long time yet
Sure, they may sell for less than they're owed. But then the difference will surely be taken on by the new owner as a debt and Allam will be a creditor until what he's owed is repaid?
I dont think we'll be fully rid of them for a long time yet
That's how I see it ending.
Somehow they have managed to have all that money pass through the club but the debt is still 60 million to the Allams? My guess is that some time soon they will take what is left and put the club into receivership, with no assets and little potential.
Don't you get all sorts of tax breaks and write offs when you liquidate a company?
If it would entail them getting their money back, I have zero doubt that they would quite happily go down that route. Therefore we must conclude that they will have done well out of their ownership.
If it would entail them getting their money back, I have zero doubt that they would quite happily go down that route. Therefore we must conclude that they will have done well out of their ownership.
Allamhouse has made significant corporate tax savings (c£20m) through using Hull City's trading losses to offset Allam Marines profitability. Therefore if the club was sold for c£40m it would suggest the Allams have not lost out financially if the assumed outstanding balance to the Allam does indeed stand at c£60m. This of course does not take into account the one remaining parachute payment, so build this into the equation and a sale price of c£25m may indeed see the Allams recover every single penny of their overall investment.
It is a buyers market, and the Allams, if they don't sell over the next 5 weeks, will inevitably begin to incur trading losses with little or no likelihood of recovering irrespective of who else they sell player wise come next Summer, a scenario that i'm sure they are focused on.
Given the level of revenue the club has generated under their management, and to have not invested and in doing so increased the asset value of the club at all, is absolutely appalling. Had the club not made some healthy player transfer profits over recent years, the position would be significantly worse.
We are back to square one without any shadow of doubt, so how they can claim to be the best run club in the division is laughable. The only upside is that the club currently has no debt to speak of, but that will change swiftly during 2019 without new owner intervention.
At face value for the club to find itself in this financial position after the income generated from 3 years in the Premier League is in my view gross mismanagement, not to mention all the other horrible elements these two individuals have deposited on our club!
They need to be gone before the end of 2018, the prospects of them staying around certainly would not work for them in more ways than one, and I hate to think of what might unfold under that background, it would be one hell of a bleak picture I fear!
I want to see football orientated owners, who care about all their stakeholders, in charge like yesterday! To the Allams you will not be forgotten, you've completely undone all your early goodwill and efforts, done untold harm to Hull City AFC, and as a result don't envisage a day when you will be welcomed in the city of Hull by anyone who supports Hull City AFC.