We've no idea, as we don't know what the relegation clauses are, or what the club's player payment structures are. I'd guess around £20m has so far been claimed back in interest and group tax savings.
As things stand, we have only spent about £6m net on signings this summer, haven't we? Jake, Dawson, Snodgrass, whatever for Ince, minus fees for Long and Boyd.
Allam Marine increased their turnover as per the last accounts although the percentage increase in profits wasn't as big. Depending on how long his bank loans were a substantial amount will have been repaid. I get the impression Assem Allam likes his company's to be cash rich. He may have turned the corner even further since the accounts were drawn up and have increased his profits still further. Hull City AFC made a profit last season which means he has some money to invest in players. He has replaced a number of championship sponsorship deals, Cash Convertors etc with more lucrative sponsors. He made have attracted a larger number of more generous sponsors. Then there is the increased gate receipts from the price hike. If Leam Tiger is correct then our net spend is slightly more than Tom cost us last season. The wage bill will be significantly higher but that's what the Sky money is for.
Only if you ignore the £2.85m we spent on Robertson, the £2.5m we've spent on Maguire, the £3.5m we've spent on Diame and the £9.7m we've spent on Hernandez. In addition to anyone else we bring in.
If Diame and Hernandez do both join that'll be roughly £37m spent, plus agent fees etc., with £15m received for Long and Boyd. A net £22m outlay isn't small but as mentioned there's the £60m+ we received from tv money alone last season. It doesn't seem like huge overspending, given the context.
Then that still leaves around £17m to contribute to transfers after £50m are set aside for wages, plus everything we make from sponsorship, tickets and merchandise. What are staff wages and other non-player overheads at? I looked through previous accounts and they only appeared to list overall staff salaries, which I assume included both playing and non-playing staff. Is that the same with the current £50m or are non-playing staff to be added on top of that?
£50m is just a guess and it includes all wages(though none of the other club running costs), the last I heard our wage bill was £42m, but it's obviously increased since then.
£50m sounds about right now, given that our previous overall wage bill in the Premier League was £38m back in 2010 and £25m in 2013 at the end of the promotion season. Trying to figure out what extra we might be paying is a bit tricky but based on this site (https://www.duedil.com/company/04032392/hull-city-tigers-limited/financials) with an overview of the past several years... -Transfer fees are the other major outlay with wages, and we know roughly a £22m net spend this season. -Directors bonus have been low since the Allams took over, £27k promotion season, and £38k the season before that. Probably still low, was the Duffen era that saw millions go out. -Depreciation around £200k - £250k, which I believe covers things like club vehicle values? An 'on paper' loss anyway. -Bank charges again far lower under the Allams, ranging from £476k to £874k. Could say an average around £670k. -Interest payments were £2m in 2012 and £2.8m in 2013. Maybe up to £4m last season? So if £50m is around the right value for staff and player wages we could be looking at around £77m for the season, not including any tax payments. In return we got £67m from tv money and our stated turnover has stayed arounf £11m from 2011 - 2013. If we allow for the new sponsorship deal and increased ticket revenue maybe that's around £14m, so £81m total income (roughly) when added to the tv money for finishing 16th place. Add in £6m for the FA Cup run and that makes £87m, so still around a £10m profit. Obviously there are other costs to factor in (hotel rooms, travel costs, food/drink, office supplies, someone to clean toilets etc.) but then there are also other incomes too - Europa League money, though less than it could've been, for one. It certainly seems like the Allams are pushing the budget as far as they can with the signings this season but it doesn't appear at a quick glance that they're pushing it beyond our means as long as we don't get relegated - we should still be making a bit of profit each season even if they keep increasing interest payments. If we go down there may or may not be relegation clauses for player wages but even if not we'd have parachute payments and other clubs would be interested in a fair number of our players. I don't think we're relying on some hidden external source of income.
Don't forget the other big bill to HMRC & around £5 million in interest on the loans from the Allams ignoring any capital repayment on those loans & the fees paid to the SMC for the use of the stadium
The PL TV money for starters helps fund this. Also they see the vast sums on offer for a top 10 finish not to mention what each PL club will get from the 2016-17 season. Going to be at least 3 times what each gets at present. Speculate to accumalate.
It's obvious where all the money has come from ................... They've finally had a clear out of the old furniture but before they did Ehab put his hand down the back of the sofa and found all the money that Duffen lost.
Just to further complicate it, because of the way transfer fees are accounted for by selling Boyd for £3M and replacing him with Diame for £3.5M we made a profit in the accounts for this season of around £1.8M (with a £1.2M loss made for next season, and the season after, although the option we have for a 4th year means it could go to £600k in years 3 and 4 instead of £1.2M in year 3). Similarly when we sold Long we made roughly £7.5M profit on his value in the accounts. Hernandez will only cost us about £3.33M this year (same again for years 2 and 3 of his 3 year contract), so combined with the first change we've got about £6M profit in the accounts this year.
In regards to wages. Educated guess work. We have gotten rid 12/13 players from the wage bill that will have freed up around 200k in wages which would cover the wages of 5-6 players. Koren, Long, Boyd, Prochwitz, Faye, Stewart and Fryatt will have surely freed up at least £150k per week in wages. Then there was Fletcher, Henderson, McElroy and the loan outs.
The view from the palace end after we signed diame "Quote slubglurge at 01 Sep 2014 4.50pm Just how much money has that f*cking Hull bloke got. They've now just broken their transfer record on a striker from Palermo Good question, and the answer is surprising. Assen Allam is apparently worth between 100 and 150 million quid which, though it sounds rich to you and me, is hardly serious money. To put it in context, John Henry, who owns Liverpool, has a net worth of .1 billion and he isn't exactly top of the owners "rich list" himself. Malcolm Glazer of Man. Utd, had a net worth of .4 billion which has presumably passed down to his sons. The bottom line is that Allam is the classic dice-roller, spending huge sums of money to, I suspect, fuel his desire for a high profile. His cheque book has to match the size of his ego; no small task. All this is fine but given his net worth there is probably little margin for error; if Assam Marine (his company) tank or the market goes against him, Hull could very quickly be in the sort of trouble that Liverpool or Man. Utd, are far more insulated against. His behaviour is frustrating for clubs like us, though, who try to operate responsibly but see ourselves beaten to one punch after another by a short-termist who, in the end, is establishing principles that are really not good for football. In Bruce, Allam has found a willing partner in crime who is happy to spend money to no useful effect. One of the pundits (I can't remember who) noted today that while Michael Dawson is a good player, a centre back was the last thing Hull needed. Bruce, though, is happy to spunk 5 million on a player simply because he's high profile and available even though he'll only make the team 1% better. That's a dangerous strategy (if it's a strategy at all) because it'll end up with an over-stocked and unbalanced squad of ultimately unhappy players who aren't getting playing time. Even though Hull have done well in the past 24 months, I can't see the Bruce/Allam approach ending happily for them."
