Source: Team_Talk
Tigers' financial talks continue
Hull's board are to hold a series of further meetings this week to discuss the club's financial crisis.[LNB] The chairman and directors convened on Monday to address the implications of City's impending relegation from the Premier League.[LNB]Hull are £35million in debt and there have been reports the Tigers could be forced to go into administration.[LNB]An alternative could be to seek to enter a Company Voluntary Arrangement but, like administration, that could incur a 10-point penalty next season.[LNB]Monday's talks ended without resolution but the club will continue to consider their options in the coming days.[LNB]Major restructure and a firesale of players seem certain.[LNB]Chairman Adam Pearson suggested at the weekend a CVA might be the preferred route, as it would at least allow the club to retain control, but owner Russell Bartlett this morning offered a more positive assessment.[LNB]In a rare interview, Bartlett told the Hull Daily Mail: "We face a tough period to trade through the transitional period and readjust the business to life in the Championship, but I am confident we can do that.[LNB]"We are presently preparing plans to trade through and within that process is to significantly lower the wage bill and potentially to restructure other liabilities."[LNB]Hull's debts spiralled out of control following their promotion to the top flight for the first time in their history in 2008.[LNB]Pearson, who returned to the club for a second spell as chairman in November, last week made some forthright remarks about the financial recklessness of predecessor Paul Duffen's tenure.[LNB]Duffen resigned in October following a damaging report from auditors which questioned the club's ability to continue as a going concern.[LNB]Pearson tried with little success to offload a number of fringe players in the January transfer window and reducing a crippling wage bill of a reported £39million will now be top priority.[LNB]Bartlett added: "A significant number of the player contracts contain step-down clauses in the event of relegation, coupled with five players coming out of contract or loan players returning to their clubs, which will help reduce the wage bill for playing staff to about £21million."[LNB]Those remarks contradict a common belief that there were no relegation clauses in player contracts but, nevertheless, Hull are likely to have to part company with their star players.[LNB]Stephen Hunt - for whom the club reportedly rejected bids in January - is likely to be in the shop window along with the likes of Jimmy Bullard, Geovanni, Anthony Gardner, Kamil Zayatte and Jan Vennegoor of Hesselink.[LNB]Bartlett added: "We must now get down to concentrating on reducing the wage bill to about £15million in the Championship to establish financial viability and stability.[LNB]"Subject to this, I anticipate we will be very competitive next season."[LNB]The situation is a far cry from last summer when Duffen and ex-manager Phil Brown spoke openly of their attempts to sign the likes of Michael Owen, Alvaro Negredo and Bobby Zamora.[LNB]Interestingly, Pearson has raised the possibility of reinstating Brown as manager.[LNB]Brown was relieved of his duties last month and replaced by Iain Dowie but remains on gardening leave.[LNB]With Dowie only on a short-term deal, it could be the cheapest option.[LNB]Hull's relegation was all but confirmed as they were beaten 1-0 by Sunderland at the KC Stadium.[LNB]They are now six points adrift of safety with two games remaining and also needing to overturn a hugely inferior goal difference.
