Rise in parachute payment levels is integral to Hull bouncing back up please log in to view this image VICE-CHAIRMAN Ehab Allam last night revealed how an anticipated 50 per cent increase in parachute payments when the new Premier League TV deal kicks in next season proved key in Hull City being able to keep together a squad that is shaping up as genuine promotion contenders. The Tigers, fresh from reaching the League Cup quarter-finals for the first time in the club’s history, have swept away the doom and gloom of relegation to claim 25 points from 13 games, a haul that means Steve Bruce’s men sit second in the table. Crucial to that strong start by the Tigers was the ability to retain the core of last term’s squad, as well as add the likes of Moses Odubajo and Sam Clucas – who arrived for a combined £4.8m in the summer – to inject some youthful vigour along with Arsenal loanee pair, Chuba Akpom and Isaac Hayden. Hull’s parachute payment of £24m for 2015-16, paid to all three clubs demoted from the top tier last May, helped enormously in that regard, as did an additional £25m banked through the sales of Robbie Brady, James Chester, Tom Ince, Nikica Jelavic and Dame N’Doye. Even that, though, would not have been enough to retain so many big name players with it instead being the new £5bn television deal – and the promise of increased parachute payments – that proved the clincher. Speaking exclusively to The Yorkshire Post, Allam said: “The season is still very tough on the finances and there were some issues that had to be overcome in the summer. “Part of that was remedied by the sale of some players. But, above all, we want to bounce back. If we hadn’t, we would have sold more players. Instead, we kept the core of the squad as a sign of our intent to get back to the Premier League. “In that respect, the projected increase for the parachute (payments) as part of the new TV deal helped us retain those core players and not have a fire sale.” Under the terms of the TV deal that ends next summer, Hull were guaranteed £64m over four years if not promoted during that time. The first instalment of £24m has already been paid, while next year – if the club are again in the Championship – would have brought £19.3m into the coffers. Two final payments of £9.6m would then have followed in 2017-18 and 2018-19. Now, though, the Tigers’ balance sheet can look forward to a significant boost. “The projection is it will increase to £28-£30m (next year),” said Allam. “That enabled us to stretch a little bit because we know more is coming next year. We were able to rely on pulling some (of that increased income) forward to push on again this year to try and get re-promoted.” Hull’s satisfaction with how things are going this season – Leicester City became the second top-flight side knocked out of the Capital One Cup by Bruce’s men on Tuesday night – is mirrored off the field. Things have become so stable, in fact, that the Allams are considering a possible re-jig of the management structure to allow Ehab, who has been hands on throughout the past two years at the KC Stadium, to take a back seat. The Hull vice chairman explained: “I am looking to make a change in the coming month because I do need to spend more time in the main business (Allam Marine). As for the club, the transfer window is out of the way and there is less to do in that sense. Things are going well. So, there will be changes.” Pressed on whether this may involve the appointment of a new chief executive, Allam replied: “Potentially, there could be a new appointment. It is being discussed at the moment with Assem (Allam, chairman). We have a few different ideas how to manage the transition.” Asked if this could be taken as proof of the club’s stability, Allam added: “You can read that into it, yes.” http://www.yorkshirepost.co.uk/spor...hull-bouncing-back-up-1-7543544#ixzz3q2MM0TWO
http://www.yorkshirepost.co.uk/spor...onal-work-by-bruce-lauded-by-allam-1-7543575? AS the dust began to settle on Hull City’s relegation last May, the club hierarchy had many big decisions to make. Not only would the Tigers have to contend with millions of pounds being wiped off the balance sheet, but there was every chance that the summer would bring a long line of suitors trying to lure away Steve Bruce’s better players. Then there was the future of Bruce to resolve. His devastation at being unable to keep Hull up was painfully clear but he wanted to stay. Crucially, the Allams also saw the 54-year-old as the best man to lead an attempt at bouncing straight back. With good reason, too, as Bruce knew exactly what would be needed to give Hull any hope of earning an instant return after taking Birmingham City back to the top flight just 12 months on from suffering the despair of relegation. So far, so good on that score this season, as vice-chairman Ehab Allam admits. “Psychologically, relegation is very hard for a team,” Allam exclusively told The Yorkshire Post ahead of tomorrow’s trip to Milton Keynes Dons. “It is not easy when people are down in the dumps. They need to be motivated into winning again. “I mentioned the last time I spoke to The Yorkshire Post (in July) my concerns about a relegation and the low win ratio we would carry into the Championship from the Premier League. “To do anything in the Championship, you need a minimum 60 per cent. On the back of two seasons when our win ratio was around 20 per cent, that is not easy. So, Steve has done an exceptional job in instilling the positivity and strength of mind to push on like we have. And I do think there is more to come.” Hull will head to stadium:mk sitting second in the table, a standing that compares favourably with how the vast majority of sides adapt to life back in the Football League following time among the elite. Even among the 11 clubs to have bounced straight back since the turn of the Millennium, only two – West Bromwich Albion in 2009-10 and Birmingham a year earlier – were higher than Hull’s current position at the corresponding stage. Of course, in this most unpredictable of divisions, Hull’s start is just that – a start. Nevertheless, Allam is pleased with how the club have handled the bodyblow that is relegation. “Transfer windows are always very, very difficult,” said the Tigers’ vice chairman. “I am not a fan of them at all. I do not like deadline day and all the pressure that comes with it. “Last summer’s window came on the back of a relegation, so there were financial pressures that came with it. But we did some very good deals out of the club in the summer. “Other than those sales, we retained most of our players. The core is the same as before, but we freshened things up as well. “The window was stressful for Steve and stressful for us. It was a difficult time. But, overall, on balance we were happy.” The proceeds from the summer window did not feature in the club’s latest accounts, published last week and covering the 12 months to June 30 2015, that showed a pre-tax profit of £11.5m. An annual turnover of £84.09m, fractionally down on 2013-14, was revealed along with a wage bill of £55.6m. The club’s debt, basically monies owed to the Allam family’s holding company, had risen to £77.4m. This term, of course, income will be down but so are wages thanks to relegation clauses inserted in player contracts that saw salaries fall by 30-50 per cent. Hull, who competed in the Europa League last term, have recently been told they now comply with UEFA’s Financial Fair Play rules after being fined £145,000 last year, while Allam expects the club to “be well within the domestic FFP” rules that all Football League clubs must adhere to. The Tigers remain up for sale but, as any half-decent football analyst would attest, this is rarely a time of year when deals are done. The focus, therefore, remains solely on getting the club back into the Premier League. Hull’s owners may not be at any games physically this season after deciding on the eve of the season to stay away, but they do gather as a family to watch every match on the live feed that all chairmen in the Championship are allowed to receive as part of the League’s TV deal. “It wasn’t that difficult,” said Allam when asked about the thought process behind the decision. “We felt the same way as a family. It (staying away) helped the squad as well. “I don’t think they particularly enjoy the negative connotation of what was going on before with fans. I do think it helps. And I still watch every game. We all meet up together to watch every game so we don’t feel to be missing out, and it has been good to see our performances. “There have been a couple of weak ones but, overall, the players have done well. They have been strong, both mentally and physically, and things are looking positive for the club.”
"Hull’s owners may not be at any games physically this season after deciding on the eve of the season to stay away, but they do gather as a family to watch every match on the live feed that all chairmen in the Championship are allowed to receive as part of the League’s TV deal." It does seem a strange decision not to actually go to the match yet watch it on TV when they live so close.
Have to say, it's not a very level playing field is it? If I supported a club who hadnt been relegated from the Prem in the last 3 years I'd think it grossly unfair.
“The projection is it will increase to £28-£30m (next year),” said Allam. “That enabled us to stretch a little bit because we know more is coming next year. We were able to rely on pulling some (of that increased income) forward to push on again this year to try and get re-promoted.” I'm not sure he's got this right, parachute payments are normally only changed for future seasons, the new deal is unlikely to change our planned payments.
That's what I thought but I do trust he is in a better position to know better and I'm sure he's right. The Allams don't seem the type to jump in two footed without researching their plan first and ensuring it checks out.
I'm not sure you are right about that but I'm wondering what he's talking about. I understand the club are getting parachute payments in 2014-2015 but he seems to be talking about 2015-2016 but we would only get them if we don't get promoted this season. Is he saying that it wont be too bad if we don't get promoted this year? I think we'd lose a lot of our players!
Many owners don't attend games. Don't blame them atm. Glad to hear that AA will appoint a CEO which is what he should have done in the first place. We wont need parachute payments after this season. £130m-ish(2016/17) please.......................
Fingers crossed he does not. AA should ask Steve Bruce if he knows anyone good. Maybe we can tempt David Gill away from Fifa / Man Utd ?
It's quite possible that in negotiating the new TV deal, the Premier League insisted that the "trailer" parachute payments (i.e. 2nd, 3rd and 4th payments) made to the teams relegated at the end of the past season ('14-'15) mirror the equivalent amounts for 2nd/3rd and 4th payments that will be made to the teams that will be relegated once the new deal comes into force - 2015-2016 onwards. If that's the deal, it's quite a nifty bit of negotiation. edit: The new deal only makes 3 payments, not 4.
What happens to the rest of our parachute payment if we go up? Do we just not get it or is it shared out to other clubs?
I guess it Goes back into the pot to help aid the next 3 relegated clubs. For sure we wont be wanting it being back in the PL and the much bigger amount due to us.
