http://www.thisishullandeastriding.co.uk/story-17838867-detail/story.html? Makes for interesting reading.
The administrative expenses reduced from £5.6m to £4m. In 2011 the cost of cancelling/selling players were a massive £15.5m whereas in 2012 we made a profit of £0.6m. Parachute payments received were £15.5m in 2011 and £13m in 2012. In 2011 a loan to Tiger Holdings Limited (controlled by Russell Bartlett) of £2.9m was written off. Interest payable increased from £1m in 2011 to £2.1m in 2012. This was mainly due the loan from Allamhouse Limited which increased from £41m to £48m and was charging interest of 5% per year. Other interesting points: HMRC are conducting an enquiry which the club are providing £874k for potential tax liabilities. The club spent £305k on motor vehicles in 2012. Was this predominantly on a luxury coach or is it on a lot of cars? There may be some useful information in the SMC accounts.
I noticed the amount OWED to the allam has risen to approximately 50 million. Much will be made of this by the Allam bashers out there.
My feeling is that the accounts are going the right way. The club has reached the tip point, where money introduced is for development rather than for propping up. It has to be remembered that in Assem Allam we have a very successful business turn around manager. He knows the steps to take and timetable to keep to. We as fans should count our blessings.
Has he paid our liabilities or just guaranteed them? What I mean is, has he just transferred the debt or money owed by HCFC from sundry others to his own company? If this is the case, he or his family may well have a change of heart at some stage in the future and demand their money.
It is a good point, I believe that it a mixture of both. Some debts where paid off and the debt transferred to Allamhoise and some longer term liabilities have been transferred to Allamhouse. The critical part is that Allamhouse has had to have the money in place to do both, so the Allams have had to move money into the company. In effect the Allams have put money into the club that is totally at risk. Unlike the previous owners who borrowed against anything and everything that the club owned and still came out with generous pay offs.
As far as I'm aware, they wrote off a couple of the debts that were an immediate threat, but they only guaranteed against the other ones. So the whopping great one we had from being relegated is still out there, but because the Allams have the credit to guarantee it there isn't a problem.
But you make it sound like you know for a fact that their intentions are wholly good. We can only judge that when they sever their links with the club and see what the bill is. Do you think they will inject tens of millions of pounds to HCFC, and then just walk away ?
Maybe it's better for them to 'loan' to us rather than just throw money straight in. At the end of the day it's no different to any other club that's got owners who put more money into it than they get back. Maybe they're waiting for the PL payday but don't see it myself.
Loans or whatever you want to call them, I am eternally grateful for the Allams intervention. These are in effect soft debts similar to pretty large sums 'owed' to the owners of Bolton and Wigan. Thankfully they are not owed to the banks.
Trade creditors are £3m HMRC are owed £1.6m Accruals/deferred income are £4 Allams are owed £49m It looks like Allams have paid most of the debts and they are owed the money. It makes sense to do that. Any owner would do that. I doubt very much it would be to their advantage to request repayment. They would just try to sell the club.
The only chance of getting their money back is for the club top get in the prem so that they can access the millions. They don't own the ground, so the only assets are the players and the prem payments. We nearly went tits up cos the players contracts (liabilities) were considerably greater than our assets (prem payments).
If they do thats when they'll look to sell the Club and recoup some of their investment having saved us from administration or worse.. thats ok by me..
The Allam's have paid off all the debts, that's why all the debts are now owed to the Allam's. They can't have a change of heart, if they walked it would cost them £40m as the debts are far bigger than any value there is in the club. Loaning the money, rather than gifting it is the only sensible option, as presumably they will at least take some of the money out at some point and it's the most tax efficient way of doing it.
At the end of the day whether the moneys a loan or a gift, without out it we'd of been foooked. Anybody else even Bothered if the Allams want it back at some point? obviously as long as it doesnt cause us to cease to exist, but wouldnt bother me at all if we paid them back eventually
