Accounts to July 2013 have just been filed today but public access will probably take a day or so. Watch this space for the latest development......
Ricardo usually does a good job of that. Unfortunately you'll have to wade through loads of ill informed views of them first!
Ricardo has a tendency to over simplify things. He could send you to sleep with his 10 million word descriptions. On the plus side he leaves no room to twist things one way or another, which is what we need on here sometimes.
There is no laymans terms. In Fact, The results will be completely misleading and will not reveal the true financial state of your club. I wouldn't worry anyway, unless you spent an absolute fortune in your promotion season or are already in crippling debt which I wouldn't have thought was the case.
Really? How's that come about if you don't mind me asking? You lads/ladies sweating on these publications?
We owe it to the owner, who took over the crippling debts the previous regime ran up by giving players astronomical wages, transfer fees the club couldn't afford, taking out ridiculously high interest bank loans, taking cash for themselves personaly under the table etc. etc. Then a bit added on top by funding a few transfers himself since he arrived.
One of our fanzines looked into the publication of our finances. Many similars and many differences to yourselves. But it highlights the figures that aren't taken into consideration and the falsities installed by the media. Quite an eye opener once you get your head round it. If it makes sense to you you should submit it to one of your fanzines and maybe they can use it to look into your situation. Chances are it won't be as bad as the media will make out. http://rokerreport.sbnation.com/201...ancial-results-are-cats-as-short-as-they-seem
Some of the differences. Unlike Sunderland it would appear that none of the money loaned to the club by assem Allam has been turned into shares. The accounts do not show whether the monies introduced into Hull City come from personal savings, current income or loans against other assets. For example Assem Allam could have intorduced £2 million into Hull City which was lent to Allam Marine and secured on its assets. It would appear that the contuned financial health of Hull City is dependent upon a man in mid 70s and the profitability of Allam Marine. Finally, as a newly promoted club it is likely that our wage and transfer costs will increase for a number of years rather than decrease. For example Tom Huddlestone cost us far more than we got for Cory Evans, as would, I presume, the net wage costs.
It's a minefield. Just remember to take the findings with a pinch of salt fella. You'll probably get a better scope on where you lie financially with your spending habits next summer then the figures your club decide to disclose.
I agree up to a point. Football is driven to a large extent by cash. Paying a player £2 to £3 million a year requires cash. Times that by 8 or 9 and you end up with needing a lot of cash. If you spend more than your income you need to find the extra from somewhere else, usually the owner. If the owner runs out of cash or starts borrowing it from elsewhere to lend to the club you end up deeper and deeper in debt with little chance of getting out. I expect our accounts to show our debts more than doubling since Assem Allam took over from Bartlett. By this time next year we may owe Assem Allam over £100 million with no idea what his family will do when they inherit that debt. Of course, with a man in his mid 70s we may face this question sooner than you will with your owner.
I agree entirely. But my point is when these figures come out they won't tell the whole story. The true figures could be worse or better, you just won't know, the fans will never know for sure. unless you went into administration and the creditors disclose everything. One of those frustrating things. Can I ask, are your club loans borrowed from your owner or is he taking out loans against the club?
He's lending the club money for which we pay interest. The question is, is this money coming from his capital or is it borrowed against his companies' assets. If its the first it will be free, if the second he'll have to pay interest.
****ing hell. Hope this publication answers some of your questions definitively on how your club is being run like. Must be frustrating having no idea whatsoever what state your club is in. Feel for you and hope everything is in order and Hull City aren't getting a dud deal here.
Bri>I may be being stupid but I think the situation was close to meltdown before the owner came in.We are in the Prem with the monies that brings and we had the greatest result in our history on Sunday.If the owner pops his clogs in 5 years time and we go into meltdown(worst case scenario) we will be back to where we were when Allam came in BUT we will have lived through the greatest period in our history.I personally would call this a win. However we may end up in a great state financially aswell as having a few great years.Our situation IMO is helped by the fact that the owners children /grandkids belong to this immediate area and so do their mates.I doubt AA will want to bring loathing on them for skulduggery/incompetence I agree with you in that we should be wary of media exagerations and distortions
He's been here a few years now, so there shouldn't be any surprises in how money has been put into the club or anything like that. It's just a case of how much extra we've been loaned by the owner. I'm expecting about £28M loss, but how much of that is in the form of an immediate cash loss or through other things is a seperate matter. Taking promotion bonuses as an example, we may have offered larger promotion bonuses in order to get the players to wait until we'd received TV money before paying them out. They would show as a loss in the accounts but not be paid until this year.
He can charge interest personally. I wouldn't suggest he goes down that route because his personal marginal rate of tax will be 45% whereas the company marginal rate of tax will be 23% now and 21% next tax year.
