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Hull City talks continue

26 Apr 2010 20:38:34

Hull City talks continue

Hull's board are to hold a series of further meetings this week to discuss the club's financial crisis.

The chairman and directors convened on Monday to address the implications of City's impending relegation from the Barclays Premier League. Hull are £35million in debt and there have been reports the Tigers could be forced to go into administration.

An alternative could be to seek to enter a Company Voluntary Arrangement but, like administration, that could incur a 10-point penalty next season. Monday's talks ended without resolution but the club will continue to consider their options in the coming days. Major restructure and a firesale of players seem certain.

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 on Monday morning offered a more positive assessment.

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.

"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."

Hull's debts spiralled out of control following their promotion to the top flight for the first time in their history in 2008.

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.

Duffen resigned in October following a damaging report from auditors which questioned the club's ability to continue as a going concern.

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.


PA

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