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| Quote ="Obadiah"Quote ="Mrs Barista"On the highlighted point, the SMC is an appointed contractor to manage a facility. In the event of a breach which qualifies as a termination trigger, if, for example, the council could terminate and simply appoint an alternative operator who has previous experience of running the facility, why would they fanny about with the existing operator who's agenda is to cause trouble and difficulties at every verse-end?'"
The SMC is not an appointed contractor but a leaseholder. This gives them additional legal rights which a contractor wouldn't have. The Council have to show the SMC is in breach of a fundamental term of the lease. If they do can show that then yes they can terminate the lease. Once the lease is terminated the Council are in charge of running the KC and the Arena. The Council may not want that responsibility and hope they can do a deal with Assem Allam.'"
A leaseholder has rights but also has additional responsibilities. If the council can lawfully terminate the lease it can make whatever future arrangements it wants for the future running of the stadium. This may or may not involve granting a new lease to someone else or running it through an arms length company.
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| Quote ="Jake the Peg"No, but it leaves them open to a legal challenge from allam and potential financial damages if they lost'"
Anyone can bring a legal case. Bringing one successfully is something else entirely.
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| Quote ="Jake the Peg"[url=http://www.allamout.co.uk/interesting website[/url popular guy'"
Interesting that the video is by Les Mutrie, I assume the same Les Mutrie who used to grace the team.
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| Quote ="phil webbo"Interesting that the video is by Les Mutrie, I assume the same Les Mutrie who used to grace the team.'"
Meeting tomorrow, Phil.
From your earlier post I guess the "FM" contract (Financial Management?) is a sub-contract within the SMC one? A bit like a tenant renting a bedroom to another tenant?
But in this case the bedroom in question forms the pillars that hold up the building - i.e., the FM contract is the critical financial key that allows access to the rest of the SMC obligations. Take the FM contract away and it's like leaving a set of lungs stagnant with no air - the FM contract is the breath?
Adam looked bronzed and happy at Bramall Lane today.
Sleep well and speak well tomorrow.
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| Quote ="Obadiah"Apologies for mixing up the answers, but my brain is fried.
I think the mortgages Assem Allam said he repaid were those Bartlett obtained on Hull City's future ticket sales and maybe the parachute payments. I don't remember him saying anything about the RBS loan when he bought the club.
There is an agreement to pay the £2 million to RBS over 3 years. This is reported in the accounts. I'd be surprised if he'd paid it off.
Assem Allam isn't shown as a creditor in the SMC accounts. Only Hull City Tigers Limited. The debt to Hull City Tigers Limited is well over £6 million.
I think there is evidence he is in fundamental breach of the lease. There are three main parts to the lease, the KC, the Arena and the profit sharing. The SMC didn't have to pay rent and get to keep most of the profits from the KC in return for allowing the community to use the Arena at roughly the same rates as the Council would charge. What the Allams have done is a fundamental breach in my view.
I'm not sure how good his solicitors are. Both Barmby and Bullard agreed to settlements with a gagging clause so we don't know how much he had to pay out to them. Bullard's contract with Ipswich Town would have reduced any settlement significantly.
Barmby's father took him on and won. He threatened RBS and backtracked.
On all the major points the arbitration found in favour of the FA. If Malcolm Clark had declared an interest at the Membership Committee meeting he'd have lost the arbitration appeal. I think finding in his favour was a fig leaf so he didn't have to keep his promise to sell within 24 hours. We'll see what happens this time.
I'd be surprised if the Council terminate the tenancy. They would be better getting an order to restore the Arena to its previous state on the grounds that its a fundamental breach. If the SMC then failed to comply the Council would have a court order on which to base any termination of the lease.
Time for a cup of tea.'"
Sir, I am indebted to you - thank you for your comprehensive and exhausting reply . There's a lot in there that I - and I'm sure a lot on here - haven't realised before.
Salient points for me - looks like the lease is breached (slammed ball into the council's court - don't flinch, Brady!) and if the lawyers are a bit pants then he really must be a delusional megalomaniac.
Tomorrow's council meetings may chuck out further clues.
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| Quote ="Diogenes"Wrong in every respect and betraying a fundamental misunderstanding of both company and criminal law. If the council had any sense and were properly advised they would do a deal with RBS and call out Hull City Tigers Limited whom I very much doubt would want their conduct to be scrutinised in court.'"
Unless the Council told the Allams they would be putting the SMC into liquidation to get the lease back it would be a potential offence under Section 2 (1) of the Fraud Act 2006. Section 12 covers companies and their directors.
Its possible that the Hull City Tigers Limited's loans are perfectly legitimate. Assem Allam gets his money from the interest Allamhouse charges Hull City, and its more than £3 million a year.
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| Quote ="Diogenes"A leaseholder has rights but also has additional responsibilities. If the council can lawfully terminate the lease it can make whatever future arrangements it wants for the future running of the stadium. This may or may not involve granting a new lease to someone else or running it through an arms length company.'"
As I've said I believe the SMC has breached the terms of the lease and the lease can be terminated. Once the lease is terminated the Council have control of the KC and the Arena. Unless they already have a new leaseholder in place they will be solely responsible for running the KC. What will they do about the Arena, removing the 3g pitch and repairing any damage costs money? The SMC has no income so the costs cannot be recoverable. What about the rent Hull FC and Hull City AFC pay. If they pay in advance they will be creditors of the SMC and the Council doesn't have to honour the SMC's contracts. The council has a further problem given all the complaints about the original deal being so poor in terms of returns to the council. Finally they have decide whether they give control away again with a new lease or just employ a "letting agent" to manage the property.
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| Quote ="WormInHand"Meeting tomorrow, Phil.
From your earlier post I guess the "FM" contract (Financial Management?) is a sub-contract within the SMC one? A bit like a tenant renting a bedroom to another tenant?'"
Facilities Management I'd guess. They'd cover everything from the fabric of the building (electrics, walls, ceilings, floors, plumbing etc, to the cleaning & grounds maintenance.
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| Had the meeting this morning with Steve, He is adamant that they (SMC) have 10 days to return the Arena to its former state (7 days left) or action will DEFINATELY be taken regardless of cost, he said "the only way that the 3G pitch stays down is if a court rules against us" so it looks like the battle lines have been draw no if buts or maybe's, He does however go on to say that he will work with them to get the academy upgrade still, personally I think it's to late to offer olive branches to them as they have a long history now of deception, as is proven on the Allam out web page, where he clearly says, re- the name change "if the FA allow it but the fans don't want it, it wont change" so much for the ballot of fans that went against him.
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| Quote ="phil webbo"Had the meeting this morning with Steve, He is adamant that they (SMC) have 10 days to return the Arena to its former state (7 days left) or action will DEFINATELY be taken regardless of cost, he said "the only way that the 3G pitch stays down is if a court rules against us" so it looks like the battle lines have been draw no if buts or maybe's, He does however go on to say that he will work with them to get the academy upgrade still, personally I think it's to late to offer olive branches to them as they have a long history now of deception, as is proven on the Allam out web page, where he clearly says, re- the name change "if the FA allow it but the fans don't want it, it wont change" so much for the ballot of fans that went against him.'"
Sounds promising - can I ask a couple of questions on the council's mood?
Is success now defined as getting the pitch removed then "as you were", or to change the SMC set-up altogether given the repeated antagonism to the world and his dog of the current operators? Kind of feels like the Allams backing down on the pitch would be a battle won, but leave them with the artillery to win the war. Put another way, if they do nothing, will the action be to send in contractors to remove the pitch or to remove the SMC as operators?
What sort of support will be offered on the academy upgrade, do we know yet?
The long history of deception started with the lies about a Sporting Village Gift which he said specifically wasn't about financial benefit, followed up by talk of a supermarket and boutiques for wives to shop in whilst men went to the game, ending up with a name change being imperative because they were relying on cash from their private development of the stadium area to fund Hull City, a private limited company. Good luck with getting the local media (Angus Young apart) to call any of this out. They seem to be in his pocket.
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| I dont know a great deal of this Allam individual and avoid anything to do with the Tigers to be honest but cutting through all the technical admin in depth on here is it simple to say he is a very devious individual with more twists and turns than a pack of Torchio
How on earth did the council ever let this fellow be involved
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| Quote ="Mrs Barista"Sounds promising - can I ask a couple of questions on the council's mood?
Is success now defined as getting the pitch removed then "as you were", or to change the SMC set-up altogether given the repeated antagonism to the world and his dog of the current operators? Kind of feels like the Allams backing down on the pitch would be a battle won, but leave them with the artillery to win the war. Put another way, if they do nothing, will the action be to send in contractors to remove the pitch or to remove the SMC as operators?
What sort of support will be offered on the academy upgrade, do we know yet?
The long history of deception started with the lies about a Sporting Village Gift which he said specifically wasn't about financial benefit, followed up by talk of a supermarket and boutiques for wives to shop in whilst men went to the game, ending up with a name change being imperative because they were relying on cash from their private development of the stadium area to fund Hull City, a private limited company. Good luck with getting the local media (Angus Young apart) to call any of this out. They seem to be in his pocket.'"
It would be a battle won, but not a small one if you take into account the Councils relationship with said individuals, The aim of this action is not to bring down the SMC but to ensure that the sports that were to all intent and purpose evicted, given their access back, The Council not only needs to be seen to be taking the moral highground but also acting in a resposible manner, but there is a feeling within cabinet that should any possible court action open up other possibilities we would be remiss to not explore any and all options, An earlier post mentioned the council wouldn't want to touch this but would want to pass the FM on is quite right, That said we have now set up an arms length sports and arts company which could act in a transitional manner until other arrangements could be made,
People need to remember that we put this contract out not to eaarn money but to stop it cost money as the stadium ages.
As for help and support for the academy, The FA have always listened to representations from the council and we could offer officer help with the manner of the planning application.
I don't expect any help from the media, I'm sure people will remember when Burnsy made some criticism of the club he was banned from the ground on matchday, so I can't see the BBC being vocal anytime soon, even Levy who ALWAYS plays the Devils advocate took it easy with him, strange that the criticism of Terry Geraghty's handling of the meetings in the early days had people calling him and saying he must go, makes you think now!
I think everyone has to wait to see what the SMC's response to the Councils ultimatum is, as soon as I know you will.
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| Quote ="phil webbo"Had the meeting this morning with Steve, He is adamant that they (SMC) have 10 days to return the Arena to its former state (7 days left) or action will DEFINATELY be taken regardless of cost, he said "the only way that the 3G pitch stays down is if a court rules against us" so it looks like the battle lines have been draw no if buts or maybe's, He does however go on to say that he will work with them to get the academy upgrade still, personally I think it's to late to offer olive branches to them as they have a long history now of deception, as is proven on the Allam out web page, where he clearly says, re- the name change "if the FA allow it but the fans don't want it, it wont change" so much for the ballot of fans that went against him.'"
Great news..
I for one ,would like to convey my support to the Council on this matter.
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| Quote ="phil webbo"It would be a battle won, but not a small one if you take into account the Councils relationship with said individuals, The aim of this action is not to bring down the SMC but to ensure that the sports that were to all intent and purpose evicted, given their access back, The Council not only needs to be seen to be taking the moral highground but also acting in a resposible manner, but there is a feeling within cabinet that should any possible court action open up other possibilities we would be remiss to not explore any and all options, An earlier post mentioned the council wouldn't want to touch this but would want to pass the FM on is quite right, [uThat said we have now set up an arms length sports and arts company which could act in a transitional manner until other arrangements could be made,[/u '"
Good that an alternative operator could assume the SMC role straightaway.
Quote ="phil webbo"People need to remember that we put this contract out not to eaarn money but to stop it cost money as the stadium ages.'"
Most people with an ounce of sense can appreciate this.
Quote ="phil webbo" As for help and support for the academy, The FA have always listened to representations from the council and we could offer officer help with the manner of the planning application.'"
Makes sense. Just unsure that the Allams want to be seen as relying on your assistance.
Quote ="phil webbo"I don't expect any help from the media, I'm sure people will remember when Burnsy made some criticism of the club he was banned from the ground on matchday, so I can't see the BBC being vocal anytime soon, even Levy who ALWAYS plays the Devils advocate took it easy with him, strange that the criticism of Terry Geraghty's handling of the meetings in the early days had people calling him and saying he must go, makes you think now!'"
Burnsy's gone further than that and said he thought a deal should have been done for Allam to have the stadium. Feel embarrassed for him now as the recent performance so completely vindicates the decision not to do business with Allam (if there were ever a deal on the table). If he'd been given West Park and so on you could well imagine the breaches of Planning restrictions left, right and centre, given the actions as a lessee of the arena! The HDM aren't much better. It's pretty disappointing that the integrity to report in a balanced way on the SMC and custodianship point is compromised to ensure the inside track on the football. Cheers for this information, look forward to the updates.
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| Quote ="Mrs Barista"Good that an alternative operator could assume the SMC role straightaway.
Most people with an ounce of sense can appreciate this.
Makes sense. Just unsure that the Allams want to be seen as relying on your assistance.
Burnsy's gone further than that and said he thought a deal should have been done for Allam to have the stadium. Feel embarrassed for him now as the recent performance so completely vindicates the decision not to do business with Allam (if there were ever a deal on the table). If he'd been given West Park and so on you could well imagine the breaches of Planning restrictions left, right and centre, given the actions as a lessee of the arena! The HDM aren't much better. It's pretty disappointing that the integrity to report in a balanced way on the SMC and custodianship point is compromised to ensure the inside track on the football. Cheers for this information, look forward to the updates.'"
Burnsy went one step further... He stated that the Council should initiate the negotiations again, so much for a 'balanced' journalist eh?
Burnsy is apprehensive of losing media coverage from Hull City & exclusive interviews from the Allam's as the BBC are only too aware, of the sensationalist ramblings and controversial outbursts, which mean one thing.. listener's ratings.
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| Quote ="weaver93"Burnsy went one step further... He stated that the Council should initiate the negotiations again, so much for a 'balanced' journalist eh?
Burnsy is apprehensive of losing media coverage from Hull City & exclusive interviews from the Allam's as the BBC are only too aware, of the sensationalist ramblings and controversial outbursts, which mean one thing.. listener's ratings.'"
Lost all credibility when at a Press Conference Allam said to him "David, you know I'm a man of my word. When have I ever not done what I said I would do?" and there was a tumbleweed silence.
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| Quote ="WormInHand"Yep (again!). People think he's out-of-touch and oblivious. Rubbish. He's extremely astute and clever. I think he will "win".
'"
If he's playing dumb, it's a helluva convincing act.
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| Quote ="Mrs Barista"
Most people with an ounce of sense can appreciate this.
[\quote
Indeed, the problem, as with any public-private deal is that the private sector can shut up shop when the good times are over.
I know you've often mocked our peppercorn rent, but I also know how reluctant you are for the council to take on risk - and it does minimise risk to the council. Very hard for FC or City to walk away from it. You've still then got the issue of Allam's Cersei Lannisteresque scheming, so probably not workable, sadly.
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| Quote ="Mild Rover"
Indeed, the problem, as with any public-private deal is that the private sector can shut up shop when the good times are over.
I know you've often mocked our peppercorn rent, but I also know how reluctant you are for the council to take on risk - and it does minimise risk to the council. Very hard for FC or City to walk away from it. You've still then got the issue of Allam's Cersei Lannisteresque scheming, so probably not workable, sadly.'"
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| Quote ="Errlee Berd"'"
Top photoshopping!
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| Quote ="Obadiah"Unless the Council told the Allams they would be putting the SMC into liquidation to get the lease back it would be a potential offence under Section 2 (1) of the Fraud Act 2006. Section 12 covers companies and their directors.
Its possible that the Hull City Tigers Limited's loans are perfectly legitimate. Assem Allam gets his money from the interest Allamhouse charges Hull City, and its more than £3 million a year.'"
No it wouldn't be an offence because there would be no false representation. Silence cant amount to a representation unless in response to a direct question. There would only be a problem if the council actively misled the Allams as to their intentions for the company after any transfer of the SMC.
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| Quote ="Diogenes"No it wouldn't be an offence because there would be no false representation. Silence cant amount to a representation unless in response to a direct question. There would only be a problem if the council actively misled the Allams as to their intentions for the company after any transfer of the SMC.'"
I think this is just confusing the issue, there will be no transfer of the SMC, it is a private FM company owned by a third party and nothing what so ever to do with the council, It's the lease and the FM contract that falls within the remit of the council, so should a court find The SMC in breach and the lease and contract revert back to the council the company (SMC) would still exist and be registered at company's house albeit without the contract, where they went with any attached debt and as a trading entity is entirely their business, and what the council did with the contract is theirs.
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| Quote ="phil webbo"I think this is just confusing the issue, there will be no transfer of the SMC, it is a private FM company owned by a third party and nothing what so ever to do with the council, It's the lease and the FM contract that falls within the remit of the council, so should a court find The SMC in breach and the lease and contract revert back to the council the company (SMC) would still exist and be registered at company's house albeit without the contract, where they went with any attached debt and as a trading entity is entirely their business, and what the council did with the contract is theirs.'"
I think we were talking about the scenario where the council accepted Allam's offer to take the SMC. As you rightly say the key to it all is whether the council could lawfully terminate the lease. If it can and if it chooses to do so (and I accept it may not want to) it could cost Allam a lot of money.
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| Quote ="Diogenes"No it wouldn't be an offence because there would be no false representation. Silence cant amount to a representation unless in response to a direct question. There would only be a problem if the council actively misled the Allams as to their intentions for the company after any transfer of the SMC.'"
Representation can be expressed or implied (Section 2 (4)). If the Council bought the SMC the clear implication, unless stated otherwise, is that it would continue trading. Putting it into liquidation shortly afterwards would be false representation under the terms of the Act.
As phil webbo says it is irrelevant as the Council aren't going to buy the SMC.
What is more relevant though is will the freehold of the KC remain with the Council or be transferred to the new sports and leisure company? Will the council via its new company offer tenancies to Hull FC and Hull City AFC for continued use of the KC if it terminates the lease?
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| Quote ="Obadiah"Will the council via its new company offer tenancies to Hull FC and Hull City AFC for continued use of the KC if it terminates the lease?'"
I'm sure they would. What would be interesting though, is whether this time they'd do it to be more attractive to the clubs or more attractive to potential operators. The indications seem to be that the council would again seek to protect themselves from losses, by finding somebody to manage it - perhaps after a transitional period under council control.
Difficult negotiation. The clubs could make a reasonable case that they should get existing terms. Though I think all sides could benefit from a simplified deal.
The stadium needs the clubs and the clubs need the stadium. The clubs might push for a better deal, but the council can't to run it a big loss, either politically or economically. And apparently doesn't want to be stuck holding the baby. The council might ideally want more from the clubs, but there's a limit to what Hull FC, in particular, can afford and City will see no reason why they should pay more.
Perhaps, the deal could or should be made directly between the clubs and the new operator. That'd be an intriguing game of chicken. But it'd probably pan out alright. Mutually assured destruction, innit?
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