Tigers chairman Adam Pearson spelled out the extent of the club's debts after their relegation was all but confirmed with defeat by Sunderland on Saturday. Earlier this season, Portsmouth became the first Premier League outfit to go into administration and, although Pearson is confident Hull can avoid the same fate, Taylor has warned clubs not to let their ambition compromise their business sense.
He told Press Association Sport: "It's just a watching brief at the moment. It's not going to be a Portsmouth situation we hope. But clubs have got to be careful when they get to the Premier League that they don't over-commit themselves financially and that their Premier League fairytale doesn't turn into a nightmare."
Taylor added: "We're keen to work with the club to make sure they survive intact and without any points deduction and without a fire sale of players."
Pearson is hoping to reduce the club's wage bill from its current £39million to around £15million for next season in an effort to clear some of the more than £30million of debt.
But the chairman, who returned to the club in November having sold it two years earlier, also revealed that Hull's highest earners - such as Jimmy Bullard and Stephen Hunt, who are on long-term deals - do not have relegation clauses in their contracts.
Taylor continued: "Normally clubs who have not been promoted long will have the possibility of relegation in mind and, if relegated, the players will have reduction clauses in their contracts, and we would be surprised if they haven't got that."
Pearson may try to renegotiate some of those deals but Taylor admitted it would be entirely up to the individual players whether they agreed to that.
He added: "It's quite normal, in order to save clubs, for payments to be deferred. But that would be another matter and something between the club and the player."
Source: PA
