AA has plunged 60m of his hard-earned cash into City. I assume at some point he will look to recoup at least some of that. I would have thought now would be a good time to start repaying our savior, even if its just 6m a year over 10 years, for example. Whilst everything is smelling of roses at the minute, the last thing we want is a 60m millstone around our necks which, theoretically AA could call in at any time (correct me if I'm wrong!).
That is the case and Ive posted many times on here that the best thing we can do with the Premier League windfall is pay back every penny. Yes it's a loan over an unspecified amount of time but they have clearly declared it as a loan rather than a gift and he'll want it back at some point. I'd much rather it be in the next 2 years than in 5 years time when we potentially cant afford it....
Allamhouse cannot call it in. We can't pay it and don't have sufficient assets to realise to pay it either. They will look to reduce their loans with premier league money
The point is The Club is wholly owned by the Allams so recovering the debt would be synonymous with lending yourself £10 and then paying it back to yourself. Nonsensical.
Its a 'soft loan' surely much the same as Wigan or Bolton Chairmans investment in their Clubs.. if they wanted some or all of it back sometime in the future surely they'd get this if they flogged the Club wouldn't they?
Youre assuming the Allams are going to continue to own it. What's more attractive for a buyer - a business with £60m debt or one that is debt free?
They can't spend it whilst its in the club. I have some cash in my paddy power account, it's like saying withdrawing it is pointless, as I'm just paying myself.
I'm not assuming anything. If the Allams want to sell the club then they will do or they wont, it will depend on the price they ask. Either way it has no bearing on us, the fans. I fully expect, and am more than happy with the Allams taking however much money they want out of the Club over the next 5 years. They saved football in Hull, what price do you put on that? In actual fact, there is so much money available now, I see plenty of scope for City funding survival in the Premiership, funding top class Training and Academy facilities and for the Allams to recoup much of what they have put in, if we have an extended stay in the Premiership.
FFS, grow a pair man and stop creaming over the Allams. A loan shark gives you £500 to pay that months rent, he says dont worry, give me it back when you like. He turns up at your door at 1am in the morning demanding £1000 ("interest") or he does your knee caps in. That's ok though, cos he kept a roof over your head for a month? Look at the bigger picture! (Or just become more skeptical ) There is absolutely no denying what the Allams have done for Hull and Hull City, they will always be remembered for that. Does that then make it ok to hold a gun to our heads for the majority of their ownership. The more prudent (AKA those without these wonderful rose-tinted goggles) would begin repayments as soon as feasibly possible.
AA said on radio today that he'd had little sleep because he had to take calls from Egyptian Media! Lets hope he taps into all the resources available there sponsorship, players and also investment which may go towards paying him back?
The Allams would be stupid to call it in now, this can be the start of a new era for the club, whether we bounce between divisions or not for a few seasons, play it safe, let the cash pile build, build the clubs stature, improve the foundations, then when it's all stable start to slowly withdraw it.
So we shouldnt use a small percentage of our windfall to start paying the clubs debt? Should we then instead wait until the 120m has been used (players, wages, infrastructure, whatever) and the Allams decide they need some money back (for what ever reason) No one knows what the future will bring, however it is foolish to plant your head in the sand telling yourself everything will be ok.
Ps no one else has mentioned that investing via 'loan' rather than 'gift' avoids having to pay an astronomical amount of tax and is the reason they did it this way.
I think they'll want to tap into more sponsorships and hopefully investors! The 120 mil is sky money! But we must be able to tap into more money? We're cool again! This is when the men in the suits do their jobs hopefully.
Even after all the crap that's gone before, I'm impressed I can still be amazed by people comparing Papa Allam to a loan shark and insisting he could screw us over. It's just baffling.
But he could screw us over if he wanted to. He won't though, he might make some personal profit (maybe) but it would tarnish his name. He has enough cash already and his Allam Marine business is raking it in, it would just be counter productive for him. One thing though, I'm shocked how little appreciation mr Allam has been shown by the fans, he should be having his name belted out the terraces, the most I've seen is the odd banner here and there and that's about it.
