Joined: Feb 20 2007 Posts: 10540 Location: Hunting Gopher
Obadiah wrote:Hull City AFC and Hull FC have user rights but have no legal interest as tenants, according to the City Council.
Under the current agreement Hull City AFC paid rent of nearly £5 million for the KC in the year ending 30 June 2014. West Ham will pay £1m a year for the Olympic Stadium. If the lease goes back to the Council do you think they'll get anywhere near £5 million a year rent?
Hull FC paid around half a million in rent. According to the accounts that doesn't cover the costs. I'm sure the Council have thought all this through.
Where are you getting that West Ham figure from? Their rental terms are being kept confidential, and the rumours are £2m+, not £1m. Plus, naming rights for the stadium will be up for grabs as a further income possibility for the LLDC, rather than nailed on for a local firm. I'd wager they'll make much more money that way than KC likely pay., as they also will through their catering.
Also, have you seen the amount of uproar currently going on about how beneficial to West Ham and detrimental to the taxpayer the whole deal has been?
I've no idea what sort of rent might be renegotiated with City/the Council, but the West Ham comparison is fundamentally flawed and meaningless.
carl_spackler wrote:Where are you getting that West Ham figure from? Their rental terms are being kept confidential, and the rumours are £2m+, not £1m. Plus, naming rights for the stadium will be up for grabs as a further income possibility for the LLDC, rather than nailed on for a local firm. I'd wager they'll make much more money that way than KC likely pay., as they also will through their catering.
Also, have you seen the amount of uproar currently going on about how beneficial to West Ham and detrimental to the taxpayer the whole deal has been?
I've no idea what sort of rent might be renegotiated with City/the Council, but the West Ham comparison is fundamentally flawed and meaningless.
£2 million is still significantly less than £4.3 million. The naming rights are irrelevant as the KC has already been named, unless the Council take the opportunity to rename the stadium. KC presumably has a contract with the SMC not the Council for the naming rights.
I understand the rent Hull City AFC and Hull FC pay is calculated on revenue from pass and ticket sales (including cash). The last accounts did not take into account the large increase in prices and we only had two FA Cup matches at home.
If the Council take back the lease then the rent will be negotiated between the council and Hull City AFC. The old agreement will be dead in the water. I expect it to be considerably less than what Hull City AFC are paying now.
Joined: Feb 20 2007 Posts: 10540 Location: Hunting Gopher
ccs wrote:....apart from city playing 4 more home league games in 2012/13, and one FA cup game, (and just 2 FA cup home games in 2013/14).
Really? Slightly surprised.
I still think it was a strange comparison given that the West Ham deal that is getting huge amounts of bad press for it's perceived lack of commercial sense, has been declared confidential, and the rumoured amounts are at least double the amount plucked for the comparison.
I still think it was a strange comparison given that the West Ham deal that is getting huge amounts of bad press for it's perceived lack of commercial sense, has been declared confidential, and the rumoured amounts are at least double the amount plucked for the comparison.
...aaaah, I thought you were referring to my comment about city's last 2 "rentals" as being a poor comparison!
Is Hodgson the new Griffin, or is it all about pace?
Joined: Feb 20 2007 Posts: 10540 Location: Hunting Gopher
Obadiah wrote:£2 million is still significantly less than £4.3 million. The naming rights are irrelevant as the KC has already been named, unless the Council take the opportunity to rename the stadium. KC presumably has a contract with the SMC not the Council for the naming rights.
Not entirely irrelevant, it's a potential additional revenue stream that may be taken into account when agreeing rental terms. It has already been quoted that the profile of West Ham has been considered as a way to increase the earning potential of it, too.
Obadiah wrote:I understand the rent Hull City AFC and Hull FC pay is calculated on revenue from pass and ticket sales (including cash). The last accounts did not take into account the large increase in prices and we only had two FA Cup matches at home.
If the Council take back the lease then the rent will be negotiated between the council and Hull City AFC. The old agreement will be dead in the water. I expect it to be considerably less than what Hull City AFC are paying now.
It may well be less, I have no idea. I just think it's flawed to support that belief with the evidence of a deal elsewhere that is being highly criticised for being undervalued, and also concerns a team with significantly higher average attendance and a stadium more than twice the size.
Last edited by carl_spackler on Fri Jun 26, 2015 12:48 pm, edited 1 time in total.
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