For some weeks now we have been warning about the financial plight of relegation threatened Hull City. These messages do not always go down well with fans, understandably enough, but they have been picked up by the local media in Hull. Now it has been reported that Hull City has borrowed £10m from an unknown bank against their parachute payment. This is a desperate measure: the interest rate on such a risky loan is likely to be high.
For some weeks now we have been warning about the financial plight of relegation threatened Hull City. These messages do not always go down well with fans, understandably enough, but they have been picked up by the local media in Hull. Now it has been reported that Hull City has borrowed £10m from an unknown bank against their parachute payment. This is a desperate measure: the interest rate on such a risky loan is likely to be high.
The club is weighed down with a £40m wage bill which it cannot afford. Owner Russell Bartlett has tried to ‘trade through’ the crisis, although that can lead you in the direction of trading while insolvent. It may be that rather than go into administration the club will seek a Company Voluntary Management in an attempt to manage their debts.