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Hull must raise 23m to stay afloat if they go down, say Tigers' accountants

28 Oct 2009 11:07:43

Hull must raise 23m to stay afloat if they go down, say Tigers' accountants

Hull City will need to raise £23million over the next 12 months just to pay off their debts should they be relegated from the Barclays Premier League, according to the club's accountants. The Tigers' accounts - released five months late to Companies House - have revealed the club made a loss of £10m during the period up to July 31, 2008 as Phil Brown's side won promotion to the top-flight via the play-offs. This does not include any figures from the club's first season inthe Premier League, and the directors remain confidentthe next set of results will be much more positive. Under pressure: Hull boss Phil Brown's side are slumped in the relegation zone But auditors Deloitte have warned a surplus of some£23m would need to be raised just to meet the club's current debts. The Tigers - who managed to retain their top-flight status on the final day of last season  - would still need need to produce an additional£16m if they stay up, with another £7m needed should they go down. The Yorkshire outfit are currently third from bottom in the Premier League table ahead of Saturday's trip to Burnley. The report, which is a matter of public record, read: 'These forecasts demonstrate that in order to operate within the company's finance facilities Hull City AFC will need to generate a surplus £23million during the next 12 months through player trading, match day and commercial income and/or through additional finance raising. 'In the event that the club retain Premier League status for the 2010-11 season, the additional funding required for the 12 month period will be in the region of £16million. This is reduced as a result of the guaranteed level of Premier League distributions that will be received. 'As is common with all football clubs, Hull City AFC will make player purchases and sales during the course of the season to manage the company's cash flow as and when required. Second best: Portsmouth's Jamie O'Hara holds off Geovanni of Hull last weekend 'The directors acknowledge that player purchases and sales are uncertain in terms of timing and quantum and some uncertainty exists over the availability and quantum of additional facilities should such be required. 'These conditions indicate the existence of a material uncertainty which may cast significant doubt about the company's ability to continue as a going concern.' Hull remain confident once the additional revenue from their first Premier League campaign is factored in - worth an estimated minimum of some £40million - then the results for 2008-09 will be more positive. The directors' statement read: 'The financial benefits arising from the Premier League's broadcasting rights are not recognised until the following financial year, where the losses incurred this year are forecast to be made good. 'The club are currently in advanced discussions with finance providers for the acceleration of known Premier League distributions for amounts of £7million. 'These discussions are expected to be concluded in the near future and would reduce the surplus finds required by £7million. 'The directors have a reasonable expectation that the company have adequate resources to continue in operational existence for the foreseeable future.'  Dozy Jozy Altidore told to fight for Hull City future after making a Twit of himself Hull 0 Portsmouth 0: Potential backers eye Pompey during bore draw at KC Stadium Injury-hit Derby seal loan deal for Hull outcast Bryan Hughes HULL CITY FC


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