Very soon the value of Hull City will be Nowt, Zero, Nothing and even then they won't be able to give it away.
Allams and administration
- Thread starter Tony Angelino
- Start date
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While we are without doubt in the midst of your Plan B, I do also think that Ehab is trying to maintain the footballing side in a way that can compete for promotion and restoration of the golden goose.
It’s just that he is so thick and hopeless and incompetent, you could be forgiven for thinking he is running the club into the ground. That said, he definitely makes decisions to spite fans - there’s no half wittedness there, it’s quite deliberate and thought through.
Nah it was the SMC I wanted for a fiver, but they have turned that to **** as well by loading loads of costs onto it. Think it's 15 million in debt now.
This is where I disagree, they aren't doing well as a business.
Look at Burnley that club is worth millions more than us as a Premier League club. The Allams had a great opportunity to make a fortune from us, but that would require them engaging with the fans and making long term decisions rather than short term asset stripping. Asset stripping wise they are doing fine and they will make money on us, but by reinvesting those profits they could of made a fortune by making us a stable Premier League club. Investment last summer with Bruce in charge would of made them far more.
Look at Burnley that club is worth millions more than us as a Premier League club. The Allams had a great opportunity to make a fortune from us, but that would require them engaging with the fans and making long term decisions rather than short term asset stripping. Asset stripping wise they are doing fine and they will make money on us, but by reinvesting those profits they could of made a fortune by making us a stable Premier League club. Investment last summer with Bruce in charge would of made them far more.
Yes but that strategy involves a degree of risk, no certainty we’d stay up even with investment. It would also please the fans and be a positive for the city (the council) so the Allams went for the more certain route which would also punish those who dared to question their authority.
If they where running it as a long term business is agree....but they arnt imo, they are just trying to make as much possible as quick as possible while the income streams are still flowing, once they stop and they have made what they can they will sell the business for the last payday. They long term running as you say is poor but once that comes home to roost they won't be here to care/pick up the pieces
Stadiums only have a limited usage so even if they are an expensive asset and one which you could borrow against, they are not resalable to anyone outside of the football industry unless Hull FC were to buy the KCOM that is!
So it's true that HCAFC are confined to deal making with the owners of the stadium - HCC if they wish to expand or make changes.
A plus of renting the stadium is the minimal current outlay.
City don't own their training ground but again you'd have to look at the rent. By not ownng it, you don't have to finance the maintenance or pay the groundstaff.
There are many calculations related to these things which impact net outgoings and income
You could use the NCV function on Excel if you have an idea of thr values involved..
The club is also only worth what someone is willing to pay for it. The Allams however haven't stated publicly how much they would accept
One of the metrics used to value a business is replacement cost (I.e. how much would it cost to get a new club into the same situation).
If you look at Championship Hull without its ground and League 1 Charlton with its ground then you have to weigh up the promotion cost (for simplicity, let's just say Charlton player cost) versus cost of Hull buying a stadium.
Work out which of these is cheaper.
Alternatively, you can look at Charlton player cost less the sale price of the Valley (this will obviously lead to a different figure as land in London is more valuable that Hull).
The SMC is not worth buying and neither is the freehold.
The SMC has debts that personally I do not think it should have. For example the new lights were installed for the football clubs benefit and not the overall benefit of the stadium.
The freehold has little area to expand into as the Park is classed as a Heritage Park and cannot be built on. The car park has restrictions that basically mean that it is untouchable for development.
The triangle has environmental issues that may protect it, but it also has restrictions on access that are cost prohibitive.
In reality any owner would be better building on a new site than trying to buy and develop on the Circle.
The shame of all of this will become apparent in the next five to ten years when I believe the stadium will require a major overhaul. It does not make enough money and there is little chance that the public purse will cover any major works.
There isn’t even a hope in hells chance that any development on the site would ever make a profit.
SMC as a business and the Stadium as a property are worthless without a partnership with HCC.
The SMC has debts that personally I do not think it should have. For example the new lights were installed for the football clubs benefit and not the overall benefit of the stadium.
The freehold has little area to expand into as the Park is classed as a Heritage Park and cannot be built on. The car park has restrictions that basically mean that it is untouchable for development.
The triangle has environmental issues that may protect it, but it also has restrictions on access that are cost prohibitive.
In reality any owner would be better building on a new site than trying to buy and develop on the Circle.
The shame of all of this will become apparent in the next five to ten years when I believe the stadium will require a major overhaul. It does not make enough money and there is little chance that the public purse will cover any major works.
There isn’t even a hope in hells chance that any development on the site would ever make a profit.
SMC as a business and the Stadium as a property are worthless without a partnership with HCC.
They were wanting long term success last season when they backed Silva in the transfer window. It’s just that the club is so toxic now, and the owners are so dim witted, that they screwed that up too. This season they are just collecting the money while maintaining a squad with resale value - again, dim wittedly and incompetently.
Lets forget about the Burnley example. All that was lost when Bruce left, thats the only positive thing the Allams have done since they came. They listened to a football man who knew what he was doing (bar Mr Chapman the go between). The Allams have a lot to thank Bruce for getting them back to the Premier League and earning them a lot of money, including the transfer fees for certain players. Then boy wonder took over and the rest is history, this club is rotten and dropping like a stone till these two go.
Makes you wonder why all major clubs in Europe, with the exception of some in Italy, go to the bother of building and maintaining stadiums.
One problems it that it is OK renting a stadium from the council, like the Milan clubs, if you have wealthy owners willing to invest their money. However, even Juventus decided that paying to build and maintain a stadium is a better bet.
Well in our current situation
I feel it's a bloody good job the allams never got to purchase the stadium
Unfortunately football doesn't work on those assumptions.
Bristol City's squad cost about £15million. The one that won promotion 2 seasons ago less. Ours cost considerably more. They have their own ground and a decent owner. Who would be the better buy?
Who is going to buy a club without its own stadium unless they are in the PL?
I don't understand the last part tom. How can there be a partnership, to do what when you say there is nothing on the site to develop.