Obadiah wrote:Hull FC have a legally binding agreement with the SMC. The SMC has a legally binding lease with Hull City Council. Hull FC have user rights at the KC but no tenancy agreement, hence no legal rights as tenant. That is according to Hull City Council in one of their papers to the Scrutiny Committee.
As far as I know Hull FC's agreement with the SMC is similar to Hull City's. Its based on a percentage of gate receipts which is why Hull City pay more.
If the lease is revoked by Hull City Council they become landlords and the agreements with the SMC for both City and FC become worthless. New agreements with both clubs have to be agreed and put in place. The market rate for the stadium hire per game will be more or less the same for both clubs unless the Allams agree to pay substantially more.
I doubt many solicitors would have predicted the behaviour of Assem Allam.
I doubt whether many Councillors are looking forward to becoming landlords of the KC. They may be hoping that the Allams will back down and put the Airco back into its previous condition.
again, a LINK TO THE FACTS. Hull FC signed a lease agreement, stop peddling your nonsense, it's embarrassing for you.
HullFC_1865 wrote:again, a LINK TO THE FACTS. Hull FC signed a lease agreement, stop peddling your nonsense, it's embarrassing for you.
Hull City Council briefing note Date 12 December 2014
"2.2 Hull City Council built the KC Stadium in 2002 at a cost of approximately £44m. The stadium is subject to a 50 year head lease with the Stadium Management Company (SMC) and Mr Adam Pearson dated 1st September 2004. The lease indicates that at the point of completion Mr Pearson was the sole shareholder of the SMC. Hull City Football Club and Hull FC Super League have user rights, but are not tenants with a legal interest in the property"
HullFC_1865 wrote:again, a LINK TO THE FACTS. Hull FC signed a lease agreement, stop peddling your nonsense, it's embarrassing for you.
Hull City Council briefing note Date 12 December 2014
"2.2 Hull City Council built the KC Stadium in 2002 at a cost of approximately £44m. The stadium is subject to a 50 year head lease with the Stadium Management Company (SMC) and Mr Adam Pearson dated 1st September 2004. The lease indicates that at the point of completion Mr Pearson was the sole shareholder of the SMC. Hull City Football Club and Hull FC Super League have user rights, but are not tenants with a legal interest in the property"
Obadiah wrote:Hull City Council briefing note Date 12 December 2014
"2.2 Hull City Council built the KC Stadium in 2002 at a cost of approximately £44m. The stadium is subject to a 50 year head lease with the Stadium Management Company (SMC) and Mr Adam Pearson dated 1st September 2004. The lease indicates that at the point of completion Mr Pearson was the sole shareholder of the SMC. Hull City Football Club and Hull FC Super League have user rights, but are not tenants with a legal interest in the property"
So "legal interest in the property", that doesn't mean a LEGAL TENANCY AGREEMENT, enjoy championship football, troll.
Obadiah wrote:Hull City Council briefing note Date 12 December 2014
"2.2 Hull City Council built the KC Stadium in 2002 at a cost of approximately £44m. The stadium is subject to a 50 year head lease with the Stadium Management Company (SMC) and Mr Adam Pearson dated 1st September 2004. The lease indicates that at the point of completion Mr Pearson was the sole shareholder of the SMC. Hull City Football Club and Hull FC Super League have user rights, but are not tenants with a legal interest in the property"
Joined: Jul 15 2005 Posts: 29811 Location: West Yorkshire
Obadiah wrote:the deal is also similar to Swansea City's which has been criticised by the EU. If the lease was terminated by the Council any future lease would have to be profitable. However its probable the Allams would want to pay the same rent as Hull FC for use of the stadium. If you rent office space you'd expect to pay the same price per square foot as the other tenants unless you got extras in the tenancy. The rent wouldn't be dependant on how much profit you made.
There's no rent payable though, is there? There are central costs of maintenance, utilities, stewarding, ticketing and so on. Many of these vary with customer volumes, not simply occasions of use, surely?
HullFC_1865 wrote:So "legal interest in the property", that doesn't mean a LEGAL TENANCY AGREEMENT, enjoy championship football, troll.
Having a legal interest in a property does mean having a legal tenancy or lease agreement.
The City Council document says that Hull FC have user rights but are not tenants with a legal interest in the property. What the documents says is neither Hull City or Hull FC have any legal interest in the KC because they are not tenants.
Hull FC have a contract which is legally binding with the SMC for the use of the KC. That isn't transferable to the Council if the lease is revoked.
Obadiah wrote:Having a legal interest in a property does mean having a legal tenancy or lease agreement.
The City Council document says that Hull FC have user rights but are not tenants with a legal interest in the property. What the documents says is neither Hull City or Hull FC have any legal interest in the KC because they are not tenants.
Hull FC have a contract which is legally binding with the SMC for the use of the KC. That isn't transferable to the Council if the lease is revoked.
Joined: Jul 15 2005 Posts: 29811 Location: West Yorkshire
Obadiah wrote:Having a legal interest in a property does mean having a legal tenancy or lease agreement.
The City Council document says that Hull FC have user rights but are not tenants with a legal interest in the property. What the documents says is neither Hull City or Hull FC have any legal interest in the KC because they are not tenants.
Hull FC have a contract which is legally binding with the SMC for the use of the KC. That isn't transferable to the Council if the lease is revoked.
Surely if the SMC deal is terminated, the council will use it's new leisure management entity to operate the stadium. We can't really prejudge their cost allocation mechanics.
Mrs Barista wrote:There's no rent payable though, is there? There are central costs of maintenance, utilities, stewarding, ticketing and so on. Many of these vary with customer volumes, not simply occasions of use, surely?
All that would be up for negotiation. Why would Assem Allam agree to the same terms for Hull City AFC that he's got now? If he doesn't agree, how can the Council enforce a new agreement? Wouldn't the Council look at issuing long term lease agreements for both Hull FC and Hull City AFC? How would the Council ensure that the KC at least broke even?
If the Council revoke the lease then surely they won't repeat the mistakes of the past and set up something similar?
ccs wrote:... the trouble is, "something similar" appeared to work ok until Mr Allam took over. This is what people (well, me anyway) can't understand.
That is because there was goodwill on all sides. That has gone as was plainly obvious when the Allams evicted the sports groups from the Airco. The Allams do what is best for them as Ehab said in his interview with David Burns. If the upkeep of the KC is costing them millions each year the only way they can get out of that is by the Council revoking the lease and renegotiating a new arrangement for Hull City AFC's use of the KC. The Council become responsible for the repairs and Hull City just pay a fair rent.
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