*Cough* COVID loan *cough* embargo * cough*
Yeah that Ehab.
Financial genius, club legend.
New Manager Ideas
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*Cough* COVID loan *cough* embargo * cough*
Yeah that Ehab.
Financial genius, club legend.
From the Allam's point of view it was smart. They weren't going to spend anyway so it didn't make a difference, and that season the next debt to the Allams reduced by £2.5m too.
Okay, but in a debate about who's making more out of player sales or who's reinvesting, Acun or Ehab?
Your point about taking an interest free loan in exchange for a transfer embargo until the club was sold being 'smart' isn't exactly a convincing one.
Well we still owe the Allams £20m by the look of the accounts.
Why wasn't it smart? If they weren't going to spend on transfer fees or pay wages above a certain level, why wouldn't you take interest-free money?
Because if your ambition is to have crowds over 8K and think Donny at home is a good boxing day tie then it's ****ing unsustainable.
I'm not sure if that's true unless there's a list of who we owe the debt to, I thought it was taken out with a third party. That doesn't mean administration is a big possibility. If Acun's money dried up we would restructure the debt.
It's absolutely true. It's in the accounts and pretty clear.
The statement says that the debt was reduced by £20m (from £39.5m) and interest is no longer being charged on the remaining balance.
And the Net Debt to Other (ie not the group who owns the club) increased by £20m, which accounts for the remaining £19.5m
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And getting banks to loan money to football clubs isn't easy, they're black holes.
The Allam debt was written down to nil, the purchase of the club + the write down was the balance of the debt. The purchase of the club was serviced by a loan taken out by Acun, it's why you see the net debt - other go from 3m to 23m. Or are you suggesting the Allam debt was transferred to that line? As I said, that's guesswork unless you have the detail of what makes up that debt balance.
I've never seen it referred to by anyone or anywhere that we have outstanding debt to the Allams that we are not servicing year on year. It would be very strange. I'm not saying it's impossible, but you're making assumptions.
It's quite easy to get banks to loan money to football clubs. Maquarie specialises it in fact and is the bank of choice for most clubs. Many borrow against future transfer income, for instance.
The statement is the telling bit that they're no longer charging interest, but there is still a balance.
If the Allams debt were written off, it would say so in the statement, yet it says it was written down by £20m and not written off.
This would be strange if true as one of the big comments made at the time of the sale was that the club was sold debt free. If what you're saying is true that would make that statement false.
https://www.thehullstory.com/allarticles/assem-allam-tribute
It would also be strange for Ehab to be sat there with 20m owed to him by the club and him not collecting on it at all.
Acun paid 20m for the purchase of the club, plus a 20m write down of the debt to the Allams = the outstanding debt to the Allams.
Now whether Acun took out a loan in order to purchase the club is entirely different.
Probably best to move this to the FFP thread or something though as I know some get quite bored of the finance discussion.
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I am not sure that any fit and proper owners test falls upon the seller. More the regulatory body. Nothing to do with the Allams.
There’s nothing in the accounts that points to the Allams being owed anything.
Is Ruben’s arrival dependent on all this Allam/acun financial info like ?
No, according to Mike White he just had to have his Visa amended as he is an International coach.
That didn’t really make sense to me because he was an International coach while at Reading??
But…
- We have agreed a compensation package with Reading
- Agreed terms with Selles
- Agreed to bring 2 coaches with him
…just waiting on the announcement
Should be in place for the new year!
- We have agreed a compensation package with Reading
- Agreed terms with Selles
- Agreed to bring 2 coaches with him
…just waiting on the announcement
Should be in place for the new year!
His visa would have said he was employed by Reading. They are amending it to say he's employed by Hull City.
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Mike White made it sound like something that was holding things up. Surely we can just announce his arrival.
Changing jobs means changing your sponsor as an international worker. It’s a real small technicality
He's going to be at the training ground to meet the players for the first time this morning, so he was never likely to be in the dugout tomorrow, we're still like to announce him ahead of the game though.