Some people need to get their heads checked...and quick. He won't walk away from a £70m+ investment....no one in their right mind would! If anything I expect him throw more money at it. The Allam's want success more than anyone and if that means investing more and more money then that's what they'll do.
Speaking after Tuesday's 1-0 Premier League defeat at Crystal Palace, Hull manager Steve Bruce insisted he was not planning a move for the former Liverpool youngster. "There's nothing in that and we're not likely to do anything before Friday," Bruce told BBC Radio Humberside.
Most of our fans are fairly sensible about it all , our only objective is to avoid relegation . i don't really have any interest in Sunderland but a lot of your fans seem to have an obsession with Steve Bruce
Na it was done and dusted until Doubtfire went crying to the press at every opportunity about being 'sacked for being a Geordie' I'm a Geordie ffs, I can assure everyone it wasn't for that.
He didn't. He answered daft questions from the press. He was clearly bored of it being raised, but the press asked because the daft southern geordies kept making a fuss. Now, unless you know anything about the current situation with the chairman, shut the **** up about Sunderland. We're really not that interested.
Please do not call this drivel OLM. Insolvency procedures are used to crystalise/finalise debt and bring about a maximum return to a lender. The Allams would lose money but using insolvency mechanisms they would be able to put a stop to continuing to give the club a credit line and receive a greater amount back than if they did nothing. This route may make sense to them. Also, the SMC has a bearing because tenancy agreements/leases can be voided in an insolvency. These facts may be unpalatable to you but they are true.
So basically, you agree that there is no way he can recoup his debt even if he walks away? Good, then we're all on the same page. Incidentally I never said he couldn't walk away (he can). I said he couldn't get his money back (he can't).
The club owes a debt to Allam, he's in control of that debt, if he hands the company over to administrators then he loses control of that debt and loses control of his company, unless he does a pre-pack, which doesn't work in this instance, as all the debt is owed to him. If he wants to stop putting money in, then he simply stops putting money in, nobody is forcing him to keep investing large amounts. As long as we have relegation wage clauses, he can just fund the club with the parachute money(maybe offloading the odd well paid player) and leave his debt sat there earning interest until he got back to the Premier League and had a chance to recoup some of it. The club pay almost nothing to play at the KC, there would be absolutely no benefit to leaving it. What you have stated is not fact at all, it would be a ridiculous route to take, it would cost him millions and though he might be a little bonkers, he's not an idiot.
Well earlier you said that selling the best players and pocketing the parachute money "ain't gonna happen in a million years. It's not even possible." You seem not so sure now.
Owners do not usually walk away from clubs leaving their loans invested and UNSECURED. As the club do not have a stadium to secure the debt against, it would have to be against all the Prem League payments which leaves no way to pay wages and brings us to a Rangers style liquidation. I hope you are right and somehow Allams decide to act in a beneficial manner. In a relegation scenario, one thing that we could do to know from the Premier League is whether entitlement to parachute payments depends on the club continuing to exist. If they are contingent on the ongoing trading of the club, it would be a deterrent to any owner pursuing a route leading to liquidation. Regarding playing at the KC you have missed the point that an insolvency can affect tenancy/leasehold rights. If you doubt what I am telling you about risks facing the club then I suggest you put these scenarios across to a licensed insolvency practitioner and make their advice publicly available.
He can afford to walk away and he will receive more money in the way I suggest than if the money is left invested with a club that cannot realistically pay much capital back annually in addition to interest, if charged. I do hope he does leave the money invested but this would be a philanthropic act on his part as I believe we could only afford small repayments that would take about 50 years
It is my understanding that if Hull City were liquidated & ceased to exist that the parachute payments would not be paid to the creditors of the club
Parachute payments not being paid is a good deterrent to liquidation, however are you sure that your understanding isn't one that only applies to ordinary class of creditors? If you remember from the Investec loans the previous owners had, the premier league did allow their loans to be secured against PL payments and if there was a liquidation get-out available then the lender would not have been fully secured.
Lets have a look at some of the facts an Insolvency Practitioner would want before offering any advice. Firstly Hull City Tigers Limited is the football club. They have a lease with the Stadium Management Company (who presumably owns the training ground, the land at Melton and the Ideal Standard facility as they are not shown in the accounts of Hull City Tigers Limited). The Stadium Management Company has the lease with Hull City Council and would lose Hull City Tigers Limited's rent. It would still be liable for the maintenance of the stadium and would have a valid tenancy with Hull FC. I'm sure Adam Pearson would ensure that the Stadium Management Company would fulfil its responsibilities. Unless you know what assets and liabilities the SMC has you wouldn't know whether it would be worthwhile putting it into liquidation. So we come to Hull City Tigers Limited, the last accounts show players worth £21 million. On liquidation they become worthless as their contracts are terminated. Which is how we got Sone Aluko for nothing last season. What assets Hull City Tigers Limited would be left with is cash at bank, debtors, stock in the shop and bits of machinery. All of those assets would be used to pay the liquidator's fees. By putting the club into liquidation Assem Allam loses all his investment. He would also lose the £50 to £60 million worth of tax losses that are available for Allamhouse and Allam Marine. At 20% corporation tax they are worth up to £12 million hard cash. By putting the club into liquidation Assem Allam will lose well over £100 million. He could put the club into administration. All that means is that the administrator tries to find a buyer for the club. The administrator could only sell if Assem Allam agrees the sale. The costs of the sale together with the administrator's fees come out of the sale price. The fees charged by Portsmouth's administrator, according to Accountancy Age, were £2.2 million. On top of that was the professional advice received to re-negotiate player's contracts and deal with the legal position of about £1.3 million. If Assem Allam wanted to sell the club he'd be far better putting it up for sale himself, he'd save a fortune in fees. He'd also lose the benefits of the tax losses. Either way he is likely to lose more than he would gain if he just sold the players himself and pocketed the parachute payments. Unless Assem Allam has no thought for his children and grandchildren he won't be going anywhere near liquidation or administration. Feel free to take this to an Insolvency Practitioner, I'm sure they'll agree with my analysis, unless, of course, they want the job.
