Can you give examples of ANY other KUHCC capital project that has delivered what could even remotely be considered as a commercial return on investment?

Unlike most, if not all, other KUHCC capital projects, the KC is offering a return, however modest, rather than a charge on the revenue account

I agree with everything that you say well put !

can seriously see this happening. With the council having there budgets cut, i think they will see this as a no brainer. I hope i'm wrong though

Councils up and down the country are having their budges cut, doesn't mean they will be allowed to sell-off multi million pound assets.

The council can sell the KC if it wants to.

What it cannot do is sell for less than it is worth. That would lead to an investigation by the District Auditor and potentially the councillors who made the decision having to pay surcharges to cover the loss.

What is the stadium worth? It cost £46m to build. That figure does not include the value of the land on which it stands and the surrounding land.

The Allams are said to be worth £180m. They have already invested £40m in Hull City. Could they afford to buy the stadium? It would mean putting over half of their total wealth into Hull City/the KC so probably not without borrowing the money, which would doubtless be secured against the stadium itself.

If the stadium is sold it does not affect Hull FC's lease. Yes they could try to buy out Hull's interest in the lease but as Hull would be under no obligation to sell the board could name its price. That price would be not less than the cost of a new home for Hull FC. How much would that be?

Any suggestion that the board could sell the lease, trouser the money and abandon the club is laughable and in doing so the directors would certainly be in breach of their duties under the Companies Act 2006.

It can?

From where do you deduce that?



See above



See above



See above but as a caveat, what fantasy world do you live in where these deals are done without finance? The Allams would not be expected to turn up with a suitcase full of notes. I seriously doubt that they'd even be required to offer personal guarantees. I'd also be surprised if they funded the purchase of Hull City from their own wealth.



see my 1st reply



As above

And what would they do with the money?

Have you read the thread or are you just going by what the dailywail has to say?

What do you [iknow[/i about the covenants attached to the KC as opposed to what you [iimagine[/i?

The fact that there [imay[/i be restrictions about what the council could do with the proceeds of sale would not prevent a sale itself.

Time for bed sunshine, let the adults play now

Would the council have a duty to sell to the highest bidder and put it on the open market to bring the best return for the residents of Hull?
Why should the Allems have a sole bid and would that be legal?
If the council are going to sell theres a lot of questions to be asked Will the Allems in five/six years time after losing money, getting bored of there project sell to any one with big bucks.

What if the council see the sale of the KC as a way of funding a new stadium east of the city.

They are often criticised for what seems to be a favouring of Hull FC by building a stadium that houses them and Hull City, not a problem while HKR were in the lower division but now it looks like unfair treatment of the City's professional teams.

If the council sold the KC with assurances that both RL and football will be safe in their tenure they could than use some of that money to build another iconic stadium for HKR and in the process make the city of Hull the envy of many other cities accross the country.

I think underwriting a loan to extend Craven Park is sufficient dont you?, and has often been pointed out, City & FC pay rent to use the stadium, so they've hardly been "given" it.

Not to mention that having 2 stadiums is hardly going to make Hull the envy of other cities

Also not to mention that HKR were offered tenancy at the KC and declined it.

And finally if, as some claim, the KC is going to be sold to pay of "debts" or even fund other shortfalls, do you really think building another stadium is going to be high on the list of priorities not withstanding the fact it would be political suicide?

[urlhttp://www.thisishullandeastriding.co.uk/news/Allams-vision-city-forefront-sport/article-3082983-detail/article.html[/url

This was never in doubt, Hull FC will remain tenants for as long as they please. The only problem for Hull will be having 12,000 people sat in a 38,000 seater stadium. The atmosphere will be mute.

Which section? Cant be bothered to root through my books for it

At least we'll be dry and have a reasonable view of the pitch

While Hull probably do pay the equivalent of a commercial rent, it is widely believed that this is not the result of a commercial rent agreement. Whether this is generous (Wilf's view) or a millstone (the opinion of droolers) is an interesting debate. Paradoxically I think it is both - it provides Hull FC with tremendous financial security. OTOH it may act as disincentive to ambition.




I assume it would be failure in their duty to shareholders - if they themselves are the shareholders, I doubt it'd be an issue. The issue would be the negative reaction it would provoke.

Yep, public opinion is not part of the 2006 Companies act

living 70 miles away i dont read the daily mail(well from time to time on the net). I prosume that they would try and plug the hole that has been that the budget shortfall. Its only my opinion though as i dont claim to know the ins and outs of how councils fund things. Its a pity these people that decide where the cuts are to be dont look at themselves first. But that will never happen will it

Just to clear this up, once and for all.

A sale of an asset could NOT be used to generate income to plug any funding shortfall, it would be ringfenced in many ways for specific expenditure.

[url=http://www.yorkshirepost.co.uk/hull/Hull-City-owners-plan-leisure.6686297.jpFrom the f'whits mouth[/url

But we are living in uncertain times and the public purse is close to breaking point. Perhaps a relaxation of these specific rules may be in order to aid short term cash flow and plug holes in this councils finances. I'm not saying they will, but it should certainly be looked at.

Seems pointless owning assests if they cannot be turned into cash and in this case the KC is not generating income for the council. Plus if they do sell it they will get income from the business rates. Everyone's a winner.

Not a chance, and nor should it be, the Public Service is bloated and the cuts are completely warranted, it's just where the axe is falling that needs addressing.

Or do you want all assets in private hands?

Never said that did i?? and i do agree public spending is ridiculously high, but if they sold the KC for say £40m, surely that money could be spent on fixing roads and improving other council facilities (and i don't mean CP either

).

What do the council get out of the KC, that they wouldn't if it were sold to the Allams??

What do the council get out of Craven Park?

This is just wind and guff from politicians and the HDM!

Nothing, but thereagain i don't think anybody has expressed an interest in buying it.