If we get relegated what will Mr Allam do?

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Obadiah said:
Lets have a look at some of the facts an Insolvency Practitioner would want before offering any advice. Firstly Hull City Tigers Limited is the football club. They have a lease with the Stadium Management Company (who presumably owns the training ground, the land at Melton and the Ideal Standard facility as they are not shown in the accounts of Hull City Tigers Limited). The Stadium Management Company has the lease with Hull City Council and would lose Hull City Tigers Limited's rent. It would still be liable for the maintenance of the stadium and would have a valid tenancy with Hull FC. I'm sure Adam Pearson would ensure that the Stadium Management Company would fulfil its responsibilities.

Unless you know what assets and liabilities the SMC has you wouldn't know whether it would be worthwhile putting it into liquidation.

So we come to Hull City Tigers Limited, the last accounts show players worth £21 million. On liquidation they become worthless as their contracts are terminated. Which is how we got Sone Aluko for nothing last season. What assets Hull City Tigers Limited would be left with is cash at bank, debtors, stock in the shop and bits of machinery. All of those assets would be used to pay the liquidator's fees. By putting the club into liquidation Assem Allam loses all his investment. He would also lose the £50 to £60 million worth of tax losses that are available for Allamhouse and Allam Marine. At 20% corporation tax they are worth up to £12 million hard cash. By putting the club into liquidation Assem Allam will lose well over £100 million.

He could put the club into administration. All that means is that the administrator tries to find a buyer for the club. The administrator could only sell if Assem Allam agrees the sale. The costs of the sale together with the administrator's fees come out of the sale price. The fees charged by Portsmouth's administrator, according to Accountancy Age, were £2.2 million. On top of that was the professional advice received to re-negotiate player's contracts and deal with the legal position of about £1.3 million. If Assem Allam wanted to sell the club he'd be far better putting it up for sale himself, he'd save a fortune in fees.

He'd also lose the benefits of the tax losses.

Either way he is likely to lose more than he would gain if he just sold the players himself and pocketed the parachute payments. Unless Assem Allam has no thought for his children and grandchildren he won't be going anywhere near liquidation or administration.

Feel free to take this to an Insolvency Practitioner, I'm sure they'll agree with my analysis, unless, of course, they want the job.
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I agree finding a buyer himself would be the cheapest option but I am not sure he will find one in a relegation scenario,
 
neverdullinhull said:
I agree finding a buyer himself would be the cheapest option but I am not sure he will find one in a relegation scenario,
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We have little or no external debt. He'll find a buyer. It just depends on how much of his debt he wants to write off and how much the buyer has to put into the club. Any potential buyer will walk up to the Council and get a deal on developing the stadium and the land around it. Financially we have enormous potential.
 
Obadiah said:
We have little or no external debt. He'll find a buyer. It just depends on how much of his debt he wants to write off and how much the buyer has to put into the club. Any potential buyer will walk up to the Council and get a deal on developing the stadium and the land around it. Financially we have enormous potential.
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So, what you're saying is, Assem Allem should get some humility and speak to the Council, for the greater good of everyone.
 
Obadiah said:
We have little or no external debt. He'll find a buyer. It just depends on how much of his debt he wants to write off and how much the buyer has to put into the club. Any potential buyer will walk up to the Council and get a deal on developing the stadium and the land around it. Financially we have enormous potential.
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Cant see it myself. The council are hardly breaking down Allams door. Anyone developing the stadium has to put more money in. Who wants a hotel round there? No one. St Stephens is killing Prinny Quay. Another development there would hinder St Stephens.
Nah unless they give it away no one will buy it or the land. Its a non starter.
 
foreign investors are always looking for an English club to invest in, and Azerbaijan seems to be one of the current places which is swimming with money. So "Mad" (as some call him) Allam sells to a bloke from Baku (Capital - yes I know my Eurovision) whose human rights record is appalling - would be majority of fans want an owner like that. I'm remembering Manchester City and their bloke from Thailand - which didn't go down too well.
 
Chazz Rheinhold said:
Cant see it myself. The council are hardly breaking down Allams door. Anyone developing the stadium has to put more money in. Who wants a hotel round there? No one. St Stephens is killing Prinny Quay. Another development there would hinder St Stephens.
Nah unless they give it away no one will buy it or the land. Its a non starter.
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Why not sit back and watch what happens.
 
mostynthecat said:
foreign investors are always looking for an English club to invest in, and Azerbaijan seems to be one of the current places which is swimming with money. So "Mad" (as some call him) Allam sells to a bloke from Baku (Capital - yes I know my Eurovision) whose human rights record is appalling - would be majority of fans want an owner like that. I'm remembering Manchester City and their bloke from Thailand - which didn't go down too well.
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Isn't there now a fit and proper persons test for potential owners?
 
Muffinthegoat said:
So, what you're saying is, Assem Allem should get some humility and speak to the Council, for the greater good of everyone.
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Or the council could talk to Allam?

Or perhaps Duffers is doing the talking for Allam?

Anyone who thinks Allam will literally walk away from his business (no body tells him how to run it) and throw away one penny is totally bonkers. He has played this whole name-change with skill and cunning, deliberately looking inept whilst progressing his strategy behind the scenes; which is exactly why HCC are staying neutral.

Expect a revelation on stadium ownership and a development partnership controlled by Allam, then the loans converted to equity to maximise sale potential (Ehab doesn't want the damn thing) and then the entrance of the Tiger lover.

The name-change isn't essential (as we've said), it's simply a nice to have but essential smoke'n'mirrors. If his plan goes tits up, he's shafted, we're shafted and CI could be saved a lot of future toil.
 
Obadiah said:
Why not sit back and watch what happens.
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I dont need you to tell me what to do ta. The wanting to work in conjunction with Mr Allam didnt happen did it, as i said it wouldnt. Secretly went to the council to try and get a deal yourself. Mr Everyman arent you, not to be trusted one bit.
 
Chazz Rheinhold said:
I dont need you to tell me what to do ta. The wanting to work in conjunction with Mr Allam didnt happen did it, as i said it wouldnt. Secretly went to the council to try and get a deal yourself. Mr Everyman arent you, not to be trusted one bit.
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Secretly? <laugh>

It's in our minutes, it was on our Twitter and Facebook pages, there's even a photo ffs.
 
Chazz Rheinhold said:
I dont need you to tell me what to do ta. The wanting to work in conjunction with Mr Allam didnt happen did it, as i said it wouldnt. Secretly went to the council to try and get a deal yourself. Mr Everyman arent you, not to be trusted one bit.
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I'm not Mr Everyman. You don't trust me, so what's new?

The development doesn't have to be shops. The Council won't wait on Assem Allam for ever. They may even develop the area themselves.
 
neverdullinhull said:
You are wrong if you think Allam won't carry out his threat to walk away if Hull Tigers is not approved. Combining this with a relegation causes a fire sale of players and in the same way Investec loans to previous owners, were covered by parachute payments, the Allam Trust/lender will receive those payments. Even then there is likely to be a shortfall on what Allams are owed.
Furthermore as Club do not own stadium lack of physical assets mean there may not be any cash flow for a viable Administration resulting in a Rangers style Liquidation. As the Allams own the SMC they will be able to influence any ultimate outcome including even moving Ferriby to KC. These risks should be on the minds and consciouses of everyone who decides opposing the Allams is a negligible risk.
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oooeeeerrrr I'm shaking
 
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