Hull face administration if relegated
Thu 15th Apr 2010 | Football Club Administration
HULL City face the prospect of administration should they be relegated.
According to a football finance expert speaking to the Hull Daily Mail unless they can secure Premier League survival, the club looks set to suffer a summer of financial woe.
Until now, Hull have refused to discuss the possibility of going into administration, with club owner Russell Bartlett determined to trade through any financial difficulties.
However, without another year of Premier League television money, it is understood the scale of the club's debts – and a mammoth £38.9m wage bill – will make it difficult for the club to continue operating.
"I think the only thing I can say at present is that it is very difficult for me to discuss our financial situation in public at present, other than to say there is nothing that can be ruled out," Mr Pearson admitted.
"It is a difficult balance between scare-mongering and understanding the full scale of the club's financial position."
Football finance experts and well-placed sources appear to agree that administration looks a real possibility should City go down.
Following auditors Deloitte's predicting a £21m shortfall should City lose their battle for top-flight survival, and with the Tigers' position looking ever more perilous, we approached a highly-regarded football finance expert who followed Portsmouth's demise into administration closely this season.
City's latest published accounts – which detailed the club's finances to July 2009 – showed the club owed £4.6m to banks, £4.5m in taxes and a further £14.6m to "trade creditors" at that time.
Of those creditors, £12.8m related to money still owed to other clubs for players presently playing for Hull.
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