Ehab's interview today doesn't suggest he's doing any business with HCC, in fact, it suggests quite the opposite. I'm sure the Allam's would be more than happy to give the SMC to HCC, but I can't see them doing anything more than that.
Hull City pays rent to the SMC as does Hull FC. The SMC is responsible for the maintenance and upkeep of the stadium. If work needs doing to it, for example fixing broken toilets, the SMC pays for it. At the end of the lease the SMCC hands back the stadium in a very good condition. The SMC made a profit of £1.6 million from renting the stadium to Hull City AFC. That money was used to subsidise the other activities undertaken by the SMC, including reported losses of over £1 million from Hull FC. Hull City effectively subsidises the running of the stadium. If Hull City Council ran it they would pay for the repairs and all the other costs. Hull City would just pay an economic rent for the times it used the stadium. Finally, if Assem Allam turns the SMC around and it starts making profits he'll have to pay a share to Hull City Council.
Which is fine if you agree with where the money goes once you've taken out of your left pocket and put it in your right pocket. If the Allams don't agree with maintaining a council run stadium and subsidising Hull FC then you find a way to stop it happening. Handing back the stadium to the council means they can negotiate a new rent for Hull City and stop subsidising Hull FC.
If the Allams don't agree, then they shouldn't have signed up for it, and lets not forget that the user agreement was negotiated by Adam Pearson when he was wearing his football hat
A change in ownership of the SMC wouldn't necessarily affect the terms of the tennants, if there a chance of a significant rent hike, AA wouldn't hand over the SMC.
Remember how Adam Pearson was the devil incarnate to FC fans? Yet he allowed FC very favourable terms.
Doesn't have to be a change of ownership, they just surrender the lease. The Council comes to an agreement with Hull FC and Hull City AFC which is beneficial to all parties. If the Allams do sell the SMC it will be with a new lease agreement in place between the SMC and Hull City AFC. The legalities are the least of their problems. All it takes is Hull City Council, Hull FC and Hull City AFC to come to an agreement. If they do that the rest follows.
The only stakeholders there I can see getting together and coming to an agreement is FC and HCC. That agreement would stitch us up whilst being mostly beneficial to FC and HCC but would be pitched as the fault of the Allams and that HCC and FC are the victims in whatever it is. Handing over the lease to me, is madness. HCC would almost certainly try to get us to pay more money, whilst charging FC less. There is no way on earth the Allams, and rightly so, would stand for that. We'd end up with yet another public spat, which would ultimately end up with us looking for a new ground. In the meant time, HCC can't organise community events, or develop the area around the KC. FC can't earn enough and pay enough to make the KC even basically runnable. The KC, and FC go to hell, HCC look like fools, we get a new ground and all the blame. Why all this now? It just doesn't make any sense from any angle. Dr A is not about to front the cash for a new ground until the name change issue is sorted.
The SMC pays nothing to Hull City Council but is responsible for everything to do with the stadium and surrounding facilities. Hull City AFC pay something like £2 million a year, on which the SMC makes a profit of £1.6 million.
Hull City AFC fund Hull FC, the loss making Arena and other bits to the tune of £1.6 million a year. Assem Allam owns a football club why would he be interested in funding Rugby League and sports other than squash? Large parts of the land surrounding the stadium is leased to the SMC so Hull City Council cannot develop it. You are right he wouldn't pass on the lease unless the rent was right for him with a long term arrangement. I think that's sorted. The SMC is making a loss and is costing Hull City AFC the same in rent as the Etihad. If he makes a profit on it, part of that profit will go to Hull City Council. Assem Allam would write the cheque paying them money. Why would Assem Allam want to keep the SMC? Genuine question.
So you pay £2m a year? What's the issue then? If you'd have had to fund that stadium yourselves it'd have been costing you more than £2m a year to service the debt. The fact that the stadium company reports a profit ignores the original cost of the build ffs, you're merely talking about an operating profit. We pay £1m merely to lease our training facility and if we were offered a stadium solution for £2m per annum we'd snap your hands off. You really don't know how lucky you are imo. £2m is nothing, especially when you factor in that the side that comes bottom of the PL will be raking in £100m in TV revenue in 2 years time. You lads need some perspective at times.
Am I missing something? Who's moaning that we pay too much rent? Bearing in mind we effectively pay rent to ourselves, it's practically free. That isn't the problem at all though. The problem is that the place is 12 years old and it's in a right state, while no one wants to pay to maintain it.
The stadium makes a profit from Hull City and a loss on all other activities. Over all the stadium company makes a loss not a profit.
Thats according to the owner of Hull City who just happens to be the owner of the stadijum management company. It really would be better with an independant SMC.
He may be over egging the pudding, but do you really think the Arena and Hull Fc are subsidising Hull City AFC?
