Me and a couple of mates was talking about the clubs lack of signings last night over a few beers it started off we need a new keeper and then it just turned into the clubs debt and how much **** we are still in even though we all thought it was not that bad.Still cannot get over how much was wasted by past owners its crazy how they have got away with ****ing up the club. Our time in the top flight should of set our club up for a great future.Just how much debt are we still in .
As far as I'm aware we are in no debt. But something like half of season ticket sales money is already going to the bank due to a deals set up by the previous regime .
I thought the Allams said that it would take a couple of years to completely recover? I might just be making that up though, I don't know
I think they said that it would take a number of years before the club could cover its own costs and not rely on him putting extra money in. Probably due to the high wages of Bullard, Oli and Mcshane. I can't remember exactly what he said, it's a while since I've heard him say anything.
It's hard to believe sometimes that we are still dealing with the reprecutions of the actions of the past regime. You can maybe justify why we are being cautious with not being held to ransom by a player's fee/wage demands, it's maybe not worth taking the risk of been back to square one again. Having been in the financial mire very recently, you can understand why the club won't be throwing money around and paying wages/transfer fees that they cannot afford. I don't think it's a lack of ambition, it's a case of not doing anything detrimental to the club's long term future. If we go up next season or in 5 seasons times, as long as we have a club to support surely that's what matters?
ultimately we are 40 odd million in debt to the allams. In reality all we have done is shuffled the debt from likes of Investec, CashConverters and other such loan sharks to a highly successful Arab businessman. Unfortunately the real criminals in all this are Gordon Taylor, the PFA and more than any other, THE PLAYERS!
We've cleared the bank debt, but as has already been mentioned, the previous regime have already mortgaged half next seasons tickets sales and spent most of the parachute money, I think we're a season away from working within our income, but if we get lucky with Jimmy, Macca, Oli, Killer and Ghilas it could happen this season.
Think people need to calm down about the club signing players. Hardly any other club in this league have started signing players, if anything it's the opposite and they're selling them. Saw the scousers were interested in Connor Wickham today for a large sum of money. I'm hoping our gaffer is a shrewd businessman and will buy well but at least give him some time to add to the few players we have got in already. Think silly season is getting to people.
Wasnt the Allams 40 million investment a gift? Theyve cleared all the loans to banks, Transfer fees owed to clubs, and paid the taxman off. Barltett/Duffen whoever borrowed against season ticket incomes and maybe other income for the next 2 seasons, so i think part of the 40m invested/given by the Allams goes towards covering this. I know theyve introduced a wage and transfer budget which is good. Just trying to get us operating as a business not a bottomless pit.
Rescuing the club was a gift, we're still waiting for the end of year accounts to be published next February to know whether the money was given as a gift or loan. I actually said at the time of the takeover that I'd prefer it to be a loan so that at some point in the future we could legitimately say the club had paid for it's own position.
maybe i am too much of a sceptic but if the allams were to walk away tomorrow, do you think they would just say....ok thanks for the fun......dont bother with the 40 million?....i was brought up by a trojan bearing a gift who taught me that if it sounded too good to be true, then it usually is!!! Or maybe its just that i am a seasoned Hull City fan?
Getting shot of them lot is the key- while we are paying their wages we have to be losing financially.
Don't know what the reasons are, but I have similar thoughts, hence the comments about having to wait and see whether the money was a gift or not. Doesn't make much difference at the moment though because either way the £40M (as a seperate transaction to the purchase) is just the Allams moving their money from one of their assets to another. The issue of them walking away and the £40M though is a bit of a none issue though. Assume all the assets of us as a PL club are worth £50M. If the £40M from the Allams is a gift then they'll get £50M for selling the club. If it's a loan then it'll mean the net value, and therefore purchase price is £10M and then they'll get the £40M on top when the loan is repaid. In either case they'll still get £50M back. Obviously until someone is prepared to pay £40M+ for us they're not likely to just walk away if they want their money back. The club would just fold and we don't have the assets to recoup that level of money, in administration/liquidation we'd be sold off much more cheaply than the Allams could sell us for.
It would be stupid of the Allams to make a gift of £40m to the club. If they sold the club there could be capital gains tax. If the club was profitable and they received dividends they would be taxed. If the £40m was a loan then they could get the money back without any tax implications.
This is a forum to get thoughts over it is not an English Lit paper! Error or not it didnt detract from the content of the articel>
A few years back the Mittals loaned QPR £15M during the year to cover costs. At the end of the year that debt was converted into shares so that that particular debt was cleared, essentially making it a gift. Would doing that avoid the tax implications for the Allams? I know in QPR's case it affected the balance of power a bit because the Mittals went from owning 20% to owning 33% (£15M seems very expensive for 13% of the club), but didn't Abramovich do the same thing with the debt at Chelsea a few years back despite being the only shareholder?
Abramovich did indeed convert his loans to shares, effectively writing off all their debt, Chelsea has so far cost him £1b in total.
