Let me add something personal to this issue. I am just a regular everyday fan of Hull City. Last year Mr Allam made a personal gesture to me that although in the scheme of things was peanuts compared to the current matters under discussion. However the fact that he, Mr Allam personally went out of his way to make my day (and the day for my family) shows to me what a genuine and thoughtful person he is. Mr Allam you have my full support.
I dont think anyone has called the Allams villans. The cold hard facts are; the clubs has borrowed 60m, that's 60m debt. That loan is being serviced at a rate of 6% per year. Promotion has just given us an estimated total of 120m. Now surely, with such a large win-fall, and knowing it's unlikely the club will see such money for a long time, it would make GOOD BUSINESS SENSE, to at least repay part of that loan, thus reducing the yearly interest repayment costs. This isn't a dig at the Allams, the money could have been borrowed from anyone for all I care.
Putting "GOOD BUSINESS SENSE" in capitals does not make it true. The money for getting into the Premier League is not a windfall, it is given to allow clubs to compete at that level. A good businessman plans in advance, and that includes scheduling loans. If you simply give back the £60m to the Allams and tell them to sod off, the club will be back in financial trouble within the year (that's why it's £120m and there are parachute payments). What is more you will have alienated the only people who were prepared to save the club last time. And before you say pay back the £60m, but keep the Allams on, why? The money was "borrowed" on a specific basis, the business plan takes the loan period and repayment terms into account. It makes no sense to break the terms of an agreement that is advantageous to us. Would you pay off your Mortgage 10 years early if it meant you couldn't afford to eat for those 10 years? All businesses need working capital, this is effectively the clubs working capital.
One last point, if I may, the point is the money could not have been borrowed from anyone. We were bankrupt. Nobody would trade with us, never mind lend us money.
Ok lets just clear something up, OLM said he BELIEVED it was at 6% but stated noone really knows the full details of it. You are basing stupid arguments on hearsay. You're stating them as fact. You also seem to be missing the point we were 5 days from disappearance.
It is if nobody else will give you a bean and nobody else would give us a bean, he's getting a reasonable return on his investment and we're back in the Premier League, it's a deal we should be very grateful for.
Bollocks, there's no way a commercial lease was for 100 years. 25 years tops, rare for anything to be over 15 years and most are now 5 years.
It has got nothing to do whatsoever with getting rid of the Allams. When they came in we were on our arse end. With their help, and money, we have dramatically turned that around into promotion into the Premier League, where we are now in a position to begin repayments. Not once did I suggest we repay the entire 60m tomorrow. We are surely in a better place to be truely debt free, opposed to having 60m of debt around our necks. I think you're missing the point. Whether it was the Allams or anyone else who came in to lend us the money, it isnt a dig at them, more a question behind the structuring of the repayments. It has bugger all to do with being "5 days from disappearance". We are where we are, thanks to a great deal of support from the Allams. I see no benefit whatsoever to keeping the 60m loan for longer than we realistically need to. Every year that passes, means another year of interest paid, on a figure which we could begin to pay off - thus reducing the yearly interest costs.
BCC is right with this one OLM, no idea why a 100 year lease was given but it was, that was where kwiksave had David Lloyd over a barrel when he announced his plans to redevelop Boothferry Park, if I remember correctly they wanted a figure of over £3 million to vacate the site.
Bizarre if true, I've leased many commercial properties and a couple of my best mates are commercial property developers and I've never heard of anyone getting a lease that long.
No offence Jay, but it's got bugger all to do with you. Our owners financial arrangements are entirely their own business. They've saved the club, they've got us back in the Premier League and whether they decide to repay themselves, or to continue to pay themselves 6% a year on their investment, it's got **** all to do with anyone on this board.
It is unusual but I've seen a few cases of it over the years. Though why a low end supermarket would have wanted to tie itself to such a long term lease seems very strange unless they were given ridiculously favourable terms.
Some proper bollocks on here again. I know it's the Mail, but let's look at a very recent quote of what AA said (Link below): "Dr Allam told Sportsmail: 'That £36 million was dead money but if I can do it for the community why not? If I can do it, I should do it. The rest of the money I spent - £30 million – was spent financing the running of the club." Now I may be wrong, but in the world of an intelligent mans veiled speech, this could indicate that he is writing £36M off as a gift (something he has aluded to in the past as it was around his original expectation) and the remainder, around £30M is a finance agreement (loan?) which he may well recoup. In my opinion he has told us how it stands without making a statement. Any views? http://www.dailymail.co.uk/sport/football/article-2320440/Hull-City-owner-Assem-Allam-snub-civic-reception-hold-celebrations.html
“Two things are infinite: the universe and human stupidity; and I'm not sure about the universe.” ― Albert Einstein
We only have to look at ourselves to see how intelligent life might develop into something we wouldn't want to meet. Stephen Hawking
There are a few Einstein quotes i like, But this is a good topic and interested in peoples views! Nobody gives away nothing for free! So though i am very very thankful to AA there has to be an angle or maybe its just old age ?
