Courtesy of the Yorkie Post, here's the Allam's investment numbers confirmed: £30m â 75 per cent of the takeover sum was a cash injection. £10m â the remaining 25 per cent was in bank guarantees. £41m â total amount of cash injected six months on, an increase of £11m. £3m â total amount of bank guarantees, £7m lower than initially anticipated. £44m â total spend by the Allam family, £4m more than budgeted seven months ago. £7m â anticipated loss for the forthcoming 2011-12 season. Break even â Hull City expect to break even from 2012 and beyond. http://www.yorkshirepost.co.uk/spor...ain_hull_will_start_to_pay_its_way_1_3622176?
They also plan to host the British Squash Open in 2013 at the KC http://www.football.co.uk/hull_city..._british_squash_open_in_2013_rss1703303.shtml
nice post, heck of a lot of money then, if were not promoted by 2014 then our wage bill would be reduced heavily i imagine, although bullard, mcshane and ghilas would be off by then.
Break even from 2012...thats when the profit making sports village/casinos,hotels circus will come in handy then!
you seem more of a businessman than I no.1. Would you anticipate that the 'club' (or the entity that is Hull City) would still have a liability in their accounts to Allam Marine, or the Allam Family or whoever has stumped up the cash, in spite of this 'break-even' statement? So in the longer term, are we merely just passing the debt from one bank to another?
I initially assumed they would plan to recoup some of their money from the remaining parachute payments. I know these had already been taken into account but when they paid of all the debts I thought this meant the parachute payments wouldn't be needed to pay off more debt. It looks like this isn't the case as it never gets mentioned. The figures just don't seem to add up, did someone from the previous regime walk away with a nice profit?
Until the accounts come out there's no way of knowing how the purchase was structured, but I've never seen any mention of it being a loan, so I assume the Allam family just invested personal cash.
If the club are able to break even then it means they are not losing money in the financial year. However, it doesn't mean any of the money injected to save the club has been paid back. Should the Allams make Hull City into a profit making business then they are quite entitled to have some of the 'profit' money used to repay back previous loans/cash injections.
"...Should the Allams make Hull City into a profit making business then they are quite entitled to have some of the 'profit' money used to repay back previous loans/cash injections...." or indeed perhaps to walk-away at any time and demand ALL the money back? Which I presume they can never get as there just isn't that money in the club?
They can only get all their money back if they find someone willing to part with over £40m to buy the club from them, which isn't going to happen any time soon.
"...hey can only get all their money back if they find someone willing to part with over £40m to buy the club from them..." or if they own the ground and decide to sell it to a property developer??? Oh heck, am I being mischievous?
If they do manage to buy the ground, it will have covenants attached which will prevent it ever being anything other than a sports stadium, so it wouldn't be an option.
You cannot get blood from a stone. The only realistic way the Allams will ever get their money back is by making Hull City a successful football club, and getting back to the Premier League. You cannot make back the £40million+ in the Championship. We should all be very grateful that they have taken this punt on Hull City and stop being so cynical.
Amazing isnt it? Just how many clubs in what is a perceived good position have completely screwed themselves? People slate Platini but his Financial Fair Play rule at least is a step in the right direction, even if not the ultimate answer.
You're being mischievous, even without the covenants that will be in place if they own the ground then they've had to pay for it, so to get their money back they'd need to make £40M plus the purchase price of the stadium. Granted the club and stadium being sold together would probably fetch more than selling them to seperate people would but it won't be £40M different. The more reliable way would be to get promoted and use the existing squad in the PL. It would probably get us relegated but it would be the minimal spend/risk for the maximum return.
