HULL CITY: Bartlett says financial stability means Tigers can move on
OWNER Russell Bartlett claims Hull City is now in a period of 'financial stability' and finally able to look forward with optimism.
The Tigers' chairman has always insisted administration was 'not on the agenda' despite the club ending last season with heavy debts and a huge wage bill.
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Hull City owner Russell Bartlett says the club's finances are now on a more stable footing.
But following recent speculation over the club's finances, Bartlett yesterday took the rare step of issuing an official statement on the club's progress.
In it, he assured fans the club could look forward with financial concerns now aside, revealing:
Bankers Investec have crucially agreed to renew the club's bank facility – providing City with another two years to repay an outstanding loan, believed to be in the region of £9m.
City have now come to new repayment agreements with all clubs owed around transfer fees, which the Mail understands totals around £9m.
All outstanding money owed to clubs in the UK and abroad will be fully repaid in 'affordable payments' by August 2011.
Other creditors have also agreed to extended payment arrangements to help the club through its financial challenges.
The statement from Bartlett did not divulge whether City had been successful in negotiating the full release of the £7.6m due to them in parachute payments from the Premier League.
When approached by the Mail, a Premier League spokesman said they would not comment on individual cases.
However, with City successfully negotiating new agreements with the clubs they owe money to, and an extended loan facility with their bank, it is hard to see any reason for the money being withheld.
That should finally end talk of the club going into administration, which has followed City since their relegation in May.
Bartlett has twice given exclusive interviews to the Mail to stress the club would trade through the troubles, and in announcing Investec's continuing support yesterday, he said the club could now 'look forward to a period of sustained financial stability.'
He added: "The club wishes to place on record it's gratitude to various UK and overseas football clubs with whom it has liabilities in respect of player purchases.
"All liabilities in respect of player purchases has been rescheduled by affordable payment plans and all debt will be paid in full to all clubs by August 2011.
"The club is also grateful to the significant number of other creditors and stakeholders who have agreed to and participated in extended payment arrangements during the financial restructuring process.
"In the meantime the club will continue with its program to reshape the playing squad in order to meet overhead targets and so as to maintain a sustainable cost base in the future against known revenue streams."
As first revealed by the Mail earlier this month, City have reduced their annual wage bill from around £34m to just over £16m over the summer as a total of 13 players have left the club.
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by Merlin, Hull
Sunday, August 15 2010, 2:02PM
“I dont think Bartlett is a bad bloke. He trusted Duffen who got lucky with Campbell. The all then got their snouts in the trough and it was silly season in the market with some sinister overtones in some departments - now under wraps. No problem in invsting to succeed but they were incompetent. Now we have a decent manager and Adam, Bartlett should bite the bullet and take responsibilty for his errors.By all means get rid of the coasters and straighten the books. But for pitys sake, if Bartlett wants to remain owner he should put something in. What I see is a business man with an eye for the parachute money. Success for him is penny-pinching and hoping the manager can work a miracle. Certainly we have some good youngsters. And definately no more splashing the cash inappropriately. But we seem not to have even a couple of million when this owner had money to slot in huge bids for other clubs. What we don't want is a person using a football club as a cash cow per se. By all means take a cut. But do not take the pizza. Why? Because the fans ultimately decide who will own their football club. In doubt about that Mr Bartlett? Well we'll see.”
by jim, Hull central
Sunday, August 15 2010, 1:18PM
“I still cant believe that Adam Pearson sold our beloved Hull City to someone like Bartlett - unforgivable.”
by Nemesis, Anlaby
Sunday, August 15 2010, 11:21AM
“NOW Bartlett must get 3 new quality players, including 2 strikers. Failure to do this and I will edge toward's Merlin's view.”
by Merlin, Hull
Sunday, August 15 2010, 10:39AM
“Bartlett has to go. I asked for Duffen's resignation and to be fair - the. bloke went. Brown's demise was ill-timed. It should have been earlier. Bartlett will put City into League One unless he actually puts money into this club. As I understood, he took 9M out and then had to put it back in. We've had the show ponys, donkeys and dodgy knee merchants. I would politely ask the curious Mr Bartlett to make the money available for a proper striker - or go down as the worst owner in the history of the club. We are heading for the Conference unless this man gets his hand in his pocket - which by then will be full of parachute payments,”
by keith, Arguing with SWMBD again
Sunday, August 15 2010, 7:12AM
“Andy Kuwait - "..... City can realistically return to the premiership at the first go especially with Nigel Pearson and the good signings he has already made."
Millwall 4 - City 0. + NO AWAY WIN FOR 17 months.
That's real. Consolidation and survival this season is success. That would be great.”
by Chris, Hull
Saturday, August 14 2010, 7:26PM
“No end to this spin. Bartlett announces that the bank is in control and he wont put any money in but dresses it up to look like good news! Seems he fools a lot of the people a lot of the time on here but its now obvious there never was a financial problem other than his unwillingness to invest. Shame on AP for playing along with his blame game. We would never have got into the Prem with this pair and probably wont be back for a while but at least we have a new level of expectation to be competitive in the Championship thanks to the acheivements of PD and PB.”
by Chris, Hull
Saturday, August 14 2010, 7:24PM
“No end to this spin. Bartlett announces that the bank is in control and he wont put any money in but dresses it up to look like good news! Seems he fools a lot of the people a lot of the time on here but its now obvious there never was a financial problem other than his unwillingness to invest. Shame on AP for playing along with his blame game. We would never have got into the Prem with this pair and probably wont be back for a while but at least we have a new level of expectation to be competitive in the Championship thanks to the acheivements of PD and PB.”
by DaveC, Hull
Saturday, August 14 2010, 3:30PM
“Glenn, I don't think there is a sensible commentator around who thought that City's squad last season was anything other than woefully over strength on terms of numbers ... what was it, 36 players in the first team squad? That's ridiculous and it isn't hard to see where all the money has gone when you are paying for 36 players mostly at Premier League level wages.
4(?) players have come in this Summer and 13 departed. That means, essentially a first team squad of 27, which for me is about right, a couple for every position and a couple spare. The Premier League are even insisting this year on a maximum squad size of 25, and Mourinho's goal at Chelsea was even smaller than that, two in each outfield position and three keepers (essentially the size of a world cup squad).
By running a squad big on numbers you will almost always have lower quality players than by running a squad built more on quality than on quantity.
If the wage bill is down to just over £16m including JB, then it really is job done bye RB and AP.”
by Farsley Tiger, Leeds
Saturday, August 14 2010, 10:28AM
“Same article as yesterday this, with an attempt to fill in a few blanks by HDM. Has to be good news that the finanices, although still stretched, are at least managable for the foreseeable future. If we manage to get a result today and sign Simpson or A N Other decent striker next week, this will have been a very positive few weeks for the Tigers.
Hopefully a good season lies ahead.”
by Andy, Kuwait
Saturday, August 14 2010, 9:44AM
“Hopefully this will put an end to all the negative vibes from the doom and gloom merchants of this City. City can realistically return to the premiership at the first go especially with Nigel Pearson and the good signings he has already made.”