Allam and Hull City have made the pages of the latest edition of Private Eye. The article is in the back of the magazine in the section devoted to dodgy financial dealings. There's nothing too startling there that hasn't been revealed before but Allam does use City's losses to avoid his other companies to pay their full tax dues. What is does mean is the great philanthropist has put in even less money than was thought so his attempted land grab has not cost him as much as was previously thought. From a purely business point of view that makes it a more worthwhile gamble. If you were a City fan the article doesn't make comfortable reading though as the spectre of outstanding tax payments is brought up.

I suspect the majority of sporting club owners use losses to offset tax liabilities incurred elsewhere

Jake wrote:
I suspect the majority of sporting club owners use losses to offset tax liabilities incurred elsewhere
Probably true but not asking fascetiously, does Allam have any other usiness interests apart from North Ferriby and Rovers? He seems to have shut everything else down????????

he was talking about Hull City losing money.

You should try engaging your brain, rather than frothing bile

The outlay for Hull City far outweighs any potential tax savings he makes on his other companies. If he wanted to dodge tax there a far easier, cheaper and ultimately more successful ways to do so without spending £70 million on a debt ridden football club.

He is loaning the money to City, certainly not spending £70 million in the sense that it has been irrevocably committed to them never to return. His actual committed amount is a fraction of that and he probably saw it as a gamble worth spending on because the benefits if his land grab had succeeded would have been very rewarding indeed. As it is he took a chance but (fortunately) it didn't come off. In fact of this mythical £70 million most of that would be someone else's loan and not out of Allam's piggy bank so to say.

rlParachute payments of £60m+rl will come in handy as well.

Maybe you should engage your brain.
What part of does Allam have any other business interests apart from North Ferriby and Rovers did you not get?

My old teacher used to say. Never assume anything.
No worries

That's not entirely true, a large portion of the £70 million is in the form of loans your right, that mainly goes back to the initial take over, however he has also invested cash, mainly in the 2012/2013 season which was essentially his last chance to bankroll promotion due to FFP rulings.

Given the current debts if he wanted to sell the club right now he would have to write off a significant portion of the loans to attract a buyer, so in that sense a portion of that money is irrevocable.

Your right it was entirely a gamble to get the land and create another business venture, the gamble failed and ultimately he will loose money on this, unless he can keep the team in the Premier League for the next 5-10 years, pay off the debts and make the club self-sustainable.

is the KC capacity big enough to support a self sustainable premier league club?

Gate receipts are a small part of a premiership club's income