Hull City accounts 2016-2017

Means little without the associated cost of sales.

 

Are payments to acquire and proceeds from sales what we spent and got for players? If so, be interesting to tot up the medias reported fees during those periods and see how they match.

Also the rumoured ~£100m asking price (can't remember exactly what it was) looks to be there or thereabouts, basically just covering all the debt owed (£125m on 30th June 2016). Proves the Allams were trying to make a 100% profit on their investment.

 

doesn't mean little to me

 

Fair enough, Mr Oyston.

 

Let's stick some dull info up that we know about the SMC accounts.

The SMC has had 4 charges on its assets; two mortgages


and two other charges:



All of these were satisified in the last financial period.

Time to look into the accounts a bit. For no apparent reason, I'll start with 2005.

 

Can you tuck me in please imp?

 

In 2005 the SMC had net assets.



I have no idea what £1m of cash deposit is or where it's come from. There is a bank loan (the mortgage seen in previous post) and is charging interest at base rate + 1.75% (so around 6.5% at the time). The bank loan is from 2005 and is repayable by March 2025.

Turnover was not stated as they were abbreviated accounts but related party transactions (the football club) were:



These show rental income of £233k. No idea what the £621k that the SMC owes the football club is. Possibly related to the £1m investment?

 

Good lad.
I can' make head nor tale of it

 

I'm struggling to continue myself!

 

2006 saw no great changes. Second bank loan was taken out. Value of land was restated.


I assume that the debtors, bank loan and investment from last year all interact and relate to the figure in related parties. Rent has gone up to £308k.

 

Nothing of note in 2007.



Rental income from City has increased to £359k.

 

2008 saw a change in directors as the club was sold.



The basis of preparation shows concerns about the solvency of the club going forward (the accounts weren't signed off until October 2009 so we are into Turner/Sonko territory.



Accounting shenanigans. The introduction of superstadium holdings limited by Bartlett et al. which had a charge satisfied, like the others, in 2016. Related parties become more complicated and £360k of management fees(!) charged to SMC by holding company and another £170k charged by Fortis. Rental income up to £1.25m.

 

The holding company in 2008 shows income of basically the management charges above



Holding company paid £4.2m for SMC



Bit more about going concern, in addition to the £23m bit mentioned in SMC accounts.



Note showing purchase price of SMC:



Details of debtors and creditors



Starting to get messy:

 

So, still in 2008, onto Tiger Holdings limited (now dissolved and known as RDB Ventures Ltd)







So the holding company bought the club for £7.2m and the SMC holding company bought the SMC for about £4m.


Balance sheet


Debtors and creditors

 

So we have gone from Hull City Tigers Limited and SMC Limited under Pearson to those two plus Hull City Holdings Ltd, SMC Holdings Ltd and various other Bartlett vehicles in the space of four years.

I may run a spreadsheet later so I can see who owed who what at each year end. Anyone still awake?

 

Keep going !

 

I like time to pass slowly. You're doing a grand job mate.

 

You might be at this all weekend.

 

Hopefully it will get easier beyond 2010, when Bartlett's web of companies get cleared up. However I think both the holding companies still exist so rather than talk about the SMC accounts for a year, you have to look at them plus two holding companies!

Edit: scrap that. Tiger Holdings (RDB Ventures) dissolved after sale to Allamhouse.

 

Right, I spent far too long looking at all the accounts last night.

There are two points where the accounts becoming a bit sketchy and it's no surprise that this is when the club is sold by Pearson to Bartlett and Bartlett to Allam. The rent charged to City by the SMC was shown under Bartlett but not under Allam. Anyway, here is a summary of the money I believe that the Allams have made by owning Hull City.

Management fees charged by Allamhouse to City for the Allams' time:
£
2011 42,000
2012 112,000
2013 148,000
2014 165,000
2015 165,000

So a total of £632k.

The only other obvious payment is interest on other loans. Assuming that this is all relating to loans from Allamhouse this is as follows:

£
2010 108,830
2011 842,617
2012 2,078,077
2013 2,821,969
2014 3,084,472
2015 2,629,945
2016 3,887,047
2017 4,267,265

A total of £19,720,222, £20,352,222 including the management fees.

As OLM alluded to, the losses incurred by the club before it was bought can be used to offset future group profits. Allamhouse bought the club on 16 December 2010. The losses at 30 July 2010 were roughly £19m and at 30 July 2011 they were roughly £35.175m. Assuming this gets relieved at 20% Corporation tax, it is worth somewhere between £3.8m and £7.035m.

If it is true that they made £6m from the failed takeover then, at 30 June 2017 this leaves the Allams at a return of between £24.15m and £33.387m. This figure ignores the purchase of the club, and it is assumed that the purchase price is included within the £60m that the club still owes Allamhouse.

Best guesses would suggest that owning the club has brought the Allams around £31.5m, suggesting that (ignoring Return on investment / inflation etc.) they would need to extract another £28.5m to break even. Remember, the firesale happened predominantly after this date and the club is due around £100m in parachute payments this year and next.

Any thoughts? Does anyone want to see my workings / spreadsheet?