Firstly for everyone note.. THIS IS NOT ANTI ALLAMS Right so that's out of the way. As I was working or with family yesterday I caught as much of the match as I could on either radio Humberside/radio 5live or talk sport. It was mentioned on one of the stations that Mike Ashley's investment similar to Mr Allams had in effect saved Newcastle United from administration. With Mr Ashley loaning the money at 0%. And that, not including any summer transfer selling, they made a profit of £9M. I have read on many sites and in the media that Mr Allam is charging Hull City 5% interest on his loan to the club. I just wonder, if I heard it right, if this makes a significant difference to the profitability and long term viability of Hull City. Especially considering NUFC attendance is averaging around £50k and HCAFC is around 20k a season. I would be interested in other people's thoughts.
If I had Ashleys money somewhere north of 3bil, then I wouldn't have a problem lending newcastle the money at 0% interest because you need to look at their signing strategy! They generate a lot more money then city and they don't spend on players the amounts they should for a club of their size! You've got to also ask where is all their sky money goes?
As far as I'm aware it is not Allam loaning the money to the club as he simply does not have that sort of "spare cash", I believe that Allam is actually borrowing the money in the name of Allamhouse in order to then lend the money to City as nobody will actually loan money to City. On that basis Allamhouse will be paying interest on the loans & thus Allam is having to pass interest charges on to Hull City (I may of course have this wrong)
While I may dislike Allam, at least he doesn't make much of his money from having his employees on "illegal" exclusive zero hour contracts
Of course that's what I mean! It's ok interest free loans! But like I say where's all the sky money go? Newcastle must be self funding?
But, their employees have had some mega bonus's recently too - I know of one person who had £26k in a couple of years
Not many of the shop floor staff will get anything like......I know someone on a zero hours contract with them who was disciplined for taking on some charitable voluntary work (unpaid) as they had only been getting a couple of days with SD (average)
It was some cash and some bank facilities, there will almost certainly be some charges involved but it won't be 5%. I don't think there's an issue with the interest being paid, it's not on unusual terms, the only issue comes if we get into Europe again, or we get relegated, as our debt level is too high.
i believe we're talking about two or three million a year in interest. in the overall scheme of things, it's not that significant. the gate receipts i believe represent 10-20% of income, although i don't know but would like to know the precise figure.
It will be closer to £5m, which is about 6% of our total income, not far off our total match day income, which is 7% of our income.
To be fair i know someone who just works on the floor who took home over 30k in the bonuses or whatever it was they got, having seen his bank account i know it wasn't a joke either, he said that is why half of them still work there as there is no other benefit to it. For that kind of job i think i'd stick it out on a zero hours contract for that bonus, as even in another retail outlet on a full time contract you will only get minimum wage with slightly better benefits.
