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16 Mar 2010
Auditors from Deloitte have issued a going concern warning on the accounts of Hull City, the embattled Premier League Club facing relegation that this week sacked its manager.
The warning comes in accounts filed at Companies House at the weekend for the year ending 31 July 2009.
The directors report concedes the club’s financial position would be perilous if it is relegated at the end of the season with potential debts of £21m, in a worst case scenario. Debts would amount to £16, if the club manages to stay up.
The report focuses on uncertainty arising from being able to sell players to raise money and raising financing.
“The existence of these material uncertainties may cast significant doubt about the company’s ability to continue as a going concern and, therefore, that it may be unable to realise its assets and discharge its abilities in the normal course of business,” said the auditors.
Hull has nine games in which to secure its future in the Premier League. An announcement on a new manager is expected shortly.
Portsmouth recently became the first ever Premier Club to enter administration with more than £60m in debts.
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Visitor comments Add your comment
Football clubs and going concern principle.
I think if we are honest most football clubs are not going concerns. Most of them are spending much more than they are generating, and if they were normal businesses the plug will have been pulled years ago.
It's not just Portsmouth and Hull that are in trouble. There are at least 20 others that have been in or are close to administration.
Posted by: David, 16 Mar 2010 | 00:00