Source: Daily_Mail
Hull high jump: Former chairman Duffen facing court action over debt-hit City
Former chairman: Paul Duffen[LNB]Hull City have issued legal proceedings against former executive chairman Paul Duffen amid concerns about the manner in which he ran the club.[LNB]Papers were served at the High Court on Thursday ahead of a hearing on Friday and are understood to relate to allegations of a lack of fiduciary and management control, personal expenditure, negligence and breach of contract.[LNB]Last night a club statement said: 'Hull City FC have now issued legal proceedings against Paul Duffen in the High Court. This action has been taken to protect the commercial best interests of the football club against the actions undertaken by Paul Duffen while in office at Hull.'[LNB]Duffen was in charge at the KC Stadium for two years, overseeingtheir climb from the Championship to the Premier League under theguidance of manager Phil Brown.But Duffen's term as chairman and chief executive ended in October amid serious concerns about Hull's finances.[LNB]In a report compiled by their accountants at Deloitte, Hull werewarned their uncertain financial position threatened their 'ability tocontinue as a going concern' and were told that they would need togenerate a £23million surplus just to meet existing liabilitiesshould they be relegated.[LNB] Three months on and Brown's side are third from bottom, in the relegation zone.[LNB]Adam Pearson replaced Duffen, returning for a second stint at the club after rescuing them from administration in 2001 and then selling to a Duffen-led consortium in June 2007. His first act as the club's new chief executive was to launch an investigation into the finances.[LNB]When Pearson handed over the reins in 2007, Hull had £1m in the bank and a wage bill of around £3.5m. When he returned little more than two years later, he claims Hull were saddled with debts of about £9m and a wage bill approaching £40m.[LNB] Happier days: Geovanni scores for Hull in their victory at Arsenal in 2008[LNB]In particular, Pearson's probe concerned the club's transfer activity and payments to agents. According to Pearson, from July 2007 until September 2009, about £5m was due to agents, although around half of that has yet to be paid.[LNB]Thursday's High Court action made no reference to agent payments but the issue could yet come under the spotlight again as the case progresses.[LNB]Duffen was not available for comment last night but he has previously admitted his failings in the transfer market led to his departure from the KC Stadium.[LNB]'Whatever the financial constraints the club have had to deal with, we have been active in the transfer market,' he said.[LNB]'We have been running the football club in a certain way, which is the way I believed it would be successful.[LNB]'Phil Brown is the manager of the team on the pitch, but at the end of the day it's on my watch.[LNB]'I am the chief executive, I'm ultimately responsible for the success on the pitch and I don't see why football club executives shouldn't be accountable. While Phil is ultimately the man on the pitch, I believe it is my responsibility to oversee the transfer market.'[LNB] Fulham and Hull enter the race to beat Ajax to Egyptian striker MidoAmr Zaki determined to silence critics as he prepares for Hull relegation fightHULL CITY FC
