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.
-
COST-CUTTING: Assem Allam.
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.
Everyone is welcome, come and visit us at St Andrews Dental Care for a FREE smile and gum health check.
Free sample goodie bags and refreshments available.
24th May 2013
Terms:
Open 9:00 til 13:00.
To be seen as a private patient.
Contact: 01482 423152
Valid until: Saturday, May 25 2013
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.
Comments
by jimmy_duvet
Monday, January 14 2013, 2:00PM
“I suppose it all boils down to who say the word owed.
If it comes from the mail, it is safe to disregard as sensationalism or just prattle from a journalist supporter of TWS who will no doubt be sat there laughing at the fallout.
If the company (Hull City) make a profit the Allams take dividends from it, if it doesn't they take a hit.
I applaud their investment and will equally applaud them if they make any profit from their investment”
by Ambertigerfan
Monday, January 14 2013, 5:20AM
“Swannyred: The Allams are businessmen all the way through: I'd say it's safe to infer that the word "owed" implies that the Allams want their money back!
I'd expect a large lump of that 48.8 million pounds will be taken when the Premiership money is paid. Of course, that's if City gain promotion! Time will tell.”
by Swannyred
Monday, January 14 2013, 12:01AM
“I would think a large chunk of that money would go on transfer fees and rediculously high premiership players wages, in an effort to keep them up.”
by Ambertigerfan
Saturday, January 12 2013, 10:34PM
“Swannyred: if City are promoted where do you think a large slice of that money will go?”
by Wakey_Tiger
Saturday, January 12 2013, 3:54PM
“Was Pearson sacked? Can't remember...”
by Swannyred
Saturday, January 12 2013, 12:26PM
“Yes it does say owed to the Allams, but with little chance of them ever getting it back. Lets face it what assets do City have? only grossly inflated player values such as Nick Proschwitz, who can all leave for free at the end of contract. I don't care what anyone says against the Allams, if it wasn't for them we wouldn't have a Hull City to watch, and I will always respect them for that. They must be crazy to invest in something with no return in prospect, after all how many teams make a profit? Reduce player wages and reduce ticket prices throughout the game, or teams will go under.”
by big_john78
Saturday, January 12 2013, 10:59AM
“SO thy are owed 48 million quid no wonder they wanted th kc staium for nothing. Hope they don't get bor of there toy”
by ComeonUull
Saturday, January 12 2013, 10:54AM
“"All sycophants notice the key word "OWED"!""
...and of course if you were putting money in you would do it differently - not! It's oh so easy to criticise when it's someone elses money/business.”
by killer127
Saturday, January 12 2013, 10:47AM
“Given City's turnover also fell from £11.4m to just over £11m - Really seeing as City received £12,219,732 from the Premier League in TV payments, I cant see how the turnover is just over £11m.
See link..
http://tinyurl.com/bwyf6vj”
by Ambertigerfan
Saturday, January 12 2013, 8:40AM
“However, a new £7m loan was needed from the owners in the year, taking the total now owed to them to £48.8m.
All sycophants notice the key word "OWED"!”