I heard a rumour yesterday that Mr Allam has withdrawn £25 million from the club from recent parachute payments. As I said it's a man who knows a man who knows a man. But would be interested if anyone else has heard of this. Also some development of the KC is to take place in West stand and a hotel complex is back on the agenda. With Ehab taking over control full time from his dad. It was an interesting discussion.
Part one he could do, it's his club and his money. As for part two, he needs to do a deal with the owners of the stadium and land around it, and that's the council. Part three goes without saying, the old man is well old and rumours of ill health crop up quite often. But he is selling the club anyway ( he say's ) so non of the above will happen.
If the club can afford it, then rumour number one can surely only be a good thing. Debts reduced, Allam loan repayments reduced, club easier to sell etc, etc. We need more of these unsubstantiated, friend of a friend rumours on here. Good work.
It's his money, he can do what he wants with it, the rest of it's bollocks, he desperately wants out.
Kinell ! We could have got McCormack wth that loot, thus sealing promotion and then he'd have access to squillions... Businessman...Pah
Debts reduced makes no difference to selling the club. The club is worth what somebody thinks it is worth without external debt. If they think it is worth £100m excluding external debt then they will pay £100m and the external debt will be written off or they will pay £100m less the external debt and then pay the external debt.
Funnily enough, I also have a friend of a friend of a friend who knows absolutely nothing about Hull City or any dealings they're going to do or have done! FACT!
If the overall club indebtedness to Allam is around £70m and he's currently in talks with a buyer who's prepared to pay £45m cash then it would leave AA with a loss of £25m. In these circumstances he might want to re-pay some of the loans to the tune of £25m from the parachute money but I can't see the club having £25m cash sat in the bank to be able to do this. So that's bollocks.
Whatever happens I suspect that Allam will come out of this having not lost a penny! If he doesn't get ALL his money out at the time of the sale I reckon its fairly obvious he'll leave some element of loan funding in place. Yes a slight risk, probably immediately removed if we are promoted, failing which he can sit back and take his repayments and 5% interest. It the latter happens it reduces the amount of funding needed to acquire the club in the first place thereby being an incentive to any prospective buyer. The important element in all of this is that Allam has a stated intent to sell to the 'right buyer' whatever that entails, but primarily to one who can sustain the business and help it develop further.
I don't think there's much chance of people pining for the good old days of Allam. It's been constant disharmony between fan, fellow fan and club for years.
He's already had about £25m back in interest and group tax benefits, he's probably had another eight figure amount out this season from the Chester/Brady sales, if he only got about £40m back now, he still wouldn't really be out of pocket.
