Hull City losses fall from £20m to £8.7m as club cut costs
HULL City lost close to £9m in the year to July 2012, newly-published accounts have revealed.
The figure is down from losses of more than £20m in the previous year, when owners Assem and Ehab Allam looked to start their cost-cutting across the business.
However, a new £7m loan was needed from the owners in the year, taking the total now owed to them to £48.8m.
Despite huge changes to make the club more efficient, the £8.7m loss means finances at the KC Stadium remain a concern for the Allams, unless they hit the jackpot with promotion to the Premier League in May.
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New Financial Fair Play regulations will impose strict limits on the losses of Championship clubs from December 2014, and could see transfer embargoes placed on sides breaking the limits.
Given City's turnover also fell from £11.4m to just over £11m, it effectively means this season marks the final opportunity for the Allams to bankroll a promotion.
They have looked to do that by supporting Steve Bruce to the tune of £3.5m in the current transfer window to sign David Meyler and Robbie Brady on three-and-a-half-year deals.
That investment will have lifted the amount now owed to the Allams to over £50m.
The accounts show a further £2.3m was spent on players between July 31 2011 and July 2012 last year, a figure which no doubt takes into account the first payment towards the £2.6m fee agreed for striker Nick Proschwitz.
Also revealed in the papers is that no compensation was paid out for loss of office, despite the exit of former chief executive Mark Maguire in December 2011.
The period does not cover agreements made with former manager Nick Barmby or head of football operations Adam Pearson, following their sackings from the club last summer.