Post subject: Re: Sale of Hull City and SMC implications
Posted: Wed Jun 08, 2016 7:23 pm
Mrs Barista
International Board Member
Joined: Jul 15 2005 Posts: 29811 Location: West Yorkshire
ccs wrote:Every penny city received from Mr Allam was a loan, costing 4% per annum, not a bad return at today's interest rates.
Not sure what's gone on really. Says he's put £85m in. If all a loan over, what, 5 years, that's £17m in interest. Then selling for a £15m profit. So cleared £32m? Can't be right?
Post subject: Re: Sale of Hull City and SMC implications
Posted: Wed Jun 08, 2016 8:35 pm
al283
Player Coach
Joined: Feb 14 2006 Posts: 540
I have absolutely no problem with him making a profit.
FFS but for some miracle working by Bruce ( twice ) some major investment in the transfer market ( much of which failed ) and a fair degree of graft & luck he would have waved bye bye to every penny. Premiership, Cup Final, Europe massive for the fans & the city. Real shame he lost the hearts & minds last year but overall he has been really positive & nobody should begrudge him a reasonable return on his money.
Post subject: Re: Sale of Hull City and SMC implications
Posted: Wed Jun 08, 2016 9:57 pm
Jake the Peg
International Chairman
Joined: Mar 22 2007 Posts: 30474
ccs wrote:What's understanding money got to do with it?
Mr Allam has invested in a football club, not usually the best way of making millions, but clearly you must know how it can be done.
Plenty of clubs turn a profit but your post stated 4% was a decent return on an investment which it isn't. If he gets his £100m then his overall return will likely be 70%+
Post subject: Re: Sale of Hull City and SMC implications
Posted: Wed Jun 08, 2016 10:41 pm
knockersbumpMKII
International Chairman
All ifs and buts and to be honest the long term strategy MUST be to keep the stadium in the hands of the council, selling it and likely any covenents which would appear to be mainly rubbish anyway given how the council got its arris handed top it by Allam would be a massive mistake IMHO. The ground would then be increased in capacity in short order, land used for a hotel and other facilities all without any consideration for the access and egress and local residents, the former which is diabolical as it is. Owners come & go and success is never a guarantee, Pearson is a business man at the end of the day and I still think he has bigger fish to fry, IF City and the SMC get sold to a consortium/big overseas money it wouldn't surprise me in the slightest if Pearson tried to do a deal to sell the club, winning silverware this year would put him in a massively better position than 12 months ago for sure.
Post subject: Re: Sale of Hull City and SMC implications
Posted: Thu Jun 09, 2016 4:46 am
Freddie Miller.
International Star
Joined: Nov 20 2011 Posts: 1183 Location: Australia
Armavinit wrote:Will Ehab pocket the 170 million for going up? Is that doled out in stages or has it to be used for specifics. Allam always claimed to have put over 80 million into City, if true, they're are making a lot on any deal.
Money for Hull City next season in the Premier League will be paid in installments and they will not receive 170 million. The team finishing bottom of the league will receive near 100 million and the top team near 150 million.
If a team is relegated next season it will receive around 80 million in so-called parachute payments over several seasons, again in installments.
So assume City finish bottom next season and do not make it back before the parachute payments run out they will be paid a total of around 180 million of Premier League money for being promoted this season.
Post subject: Re: Sale of Hull City and SMC implications
Posted: Thu Jun 09, 2016 7:10 am
ccs
International Star
Joined: Aug 15 2011 Posts: 5318
Jake the Peg wrote:Plenty of clubs turn a profit but your post stated 4% was a decent return on an investment which it isn't. If he gets his £100m then his overall return will likely be 70%+
... roughly 24% of which was made up in interest on his loan. A handy extra when the risk factor is taken into account.
Is Hodgson the new Griffin, or is it all about pace?
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