Hull City AFC pay millions in rent to the SMC. That money subsidises the Airco Arena and Hull FC. How much is open to debate but I don't expect Hull City's rent to change very much if Hull City Council buy the SMC. In theory we could end up paying less.
Has something changed there recently then? I seem to remember talk during the Bartlett era that City was benefitting from a 2002/Div 3 rent agreement.
The SMC don't pay any rent to the City Council but Hull City AFC and Hull FC pay rent to the SMC. I think the rent was sufficient to pay Bartlett a salary of £1 million a year. I'd be surprised if all that came from Hull FC. If the SMC is profitable the Council and SMC each get a share.
I've misunderstood what City pays the SMC vs what the SMC pays the council then. It does beg the question though, what are the SMC doing to rack up these losses if the football club is paying its way, the rugby club subsidy has been stopped, and they're barely paying any rent.
No its not, the SMC is capable of earning money, any fool knows that, believe the hype at your own peril.
I'm sure you were saying before if the council took it back they would make Hull City pay a fair rent as they were getting it for next to nowt, very good deal for them etc etc and with the PL money they should be paying more rent?
Its bloody obscene and a disgrace the rent Hull City pay for the stadium as a percentage of income. I assume this is because the deal was agreed at a time when City had little income and wasnt designed to take into account any increase in earnings.
If I did it was a poor formulation, my apologies. I thought I said when discussing the stadium expansion that if the SMC gave up the lease Hull City AFC could ending up paying the same rent to the Council for a 35,000 seat stadium as it does now. If Hull City Council terminated the lease they would be in a strong bargaining position and could demand more in rent than City pays to the SMC. I think this is now ruled out as peace appears to have been declared. I didn't consider the Council buying the SMC as it would be stuck with most of the existing agreements and debts.
I did say that if the SMC really is for sale I would be prepared to risk fiver provided I could get a look at the books. It seems like everyman and his dog have an inside "in the know" source. Lost 250k a year, lost 600k, could be run for a profit. One thing stood out though Bartlet and his 1 million salary. So I buy it for a fiver and only take 400k a year and even in the worse case scenario my SMC will break even. Anyone got the Doctors phone number?
That's CSE grade 4 math's for you. Anyway with that salary i would able to live with loss of a fiver. Would there be a tax benefit by running the company at a loss?
Allam knows the smc is a drain on the club and him. HCC handed over the kc to the SMC so the stadium didnt become a drain on the taxpayers of hull. Hull city and hull fc rent is a long term fixed rate to the smc. Council wont be able to put up the rent without the clubs agreeing first.
It could benefit all if the SMC goes back to the council. They want to run leisure services as an arms length company anyway and the SMC would roll into that I imagine. The only issue I see is we could get into an argument with the council run SMC on facilities and repairs etc. Could get messy. Although there would be a condition survey and schedule of dilapidation prior to the transfer of the SMC lease so everyone knows the condition of the stadium and SMC assets prior to a deal being done. May cost Allam in the interim.
HCST and those calling for it on here should be lobbying HCC to take the lease back. Let our owners concentrate on our club. Everyone wins then.
Yes I know. Why are they keeping so quiet on this? You were keen enough for the ACV, I'm a little surprised there's been no comment.
If the Council dont want to the buy the smc. Why dont HCST buy it for a £1 . They want more say in how the stadium is run.
