Hull City faced with going concern warning
Deloitte reveals concern for club's finances
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.
Read more:
HMRC
challenges Portsmouth administration
HMRC
and football players’ image rights