Quality.... see what you did there.

This is the bit which puzzles me.

I am assuming he will need to borrow to buy the KC in the first place, therefore landing a load of debt on Hull City's balance sheet ala The Glazers at Man Utd.

The Stadium is a fairly specific building (used for sporting / music events), therefore the market value for this type of asset is only going to be pushed up if there is an active market out there putting that asset under demand.

Any bank willing to lend on this would have to assess the recoverability of the loan they give. This cannot be based in the Stadium structure value as there is no active market for it, rather the income it could generate in the future (future ticket sales).

Therefore this would be one huge gamble to a lenders part and would also but a gamble on the borrowers part, as they would absolutely need the stadium to be full every week with a successful soccer team.

In the current economic client, would Mr Allam find a lender willing to be part of this?

On a slightly different note, this type of securitisation is very simiar to how Leeds United got themselves into the mire.

Think they're OK to initially buy the stadium, but will then use it as security to raise the funds they need to get City towards the Premiership again. Then watch them sell the lot.... As well as the Allam's - it's the unknown next owners that bother me.

But thats the whole point, what security does it actually provide?

With a mortgage on a house, anyone defaulting gets their house reposessed and the bank sell it on as there is an active market.

There is no active market for a sporting stadia.

Your scenario is exactly what got Leeds Utd into so much trouble. Borrow money on the basis of future income only to fritter it away on high wages for cack player.

as I understand it that's why its all tied up with this sports village idea, I'd heard he already has a number of lenders interested (don't know if its true) and the sports village will basically be heavily mortgaged. He isn't just looking to buy the ground as someone said earlier he wants the whole of the fair ground and a large proportion of the park land, all prime real estate for a knock down price. I can't see the council giving him that much and I think these talks will be fruitless.

Allams invest £1m in Rovers! That'll make them popular in West Hull! www.newsnow.co.uk/A/494925831?-4338

Allams invest £1m in Rovers! That'll make them popular in West Hull! www.newsnow.co.uk/A/494925831?-4338

Yep that's on our site to app for investment in players and facilities

His involvement with the city gets more and more worrying for me. You never get owt for nowt!

I've said it before I don't want them anywhere near Hull FC. I simply don't trust them, rovers need cash desperately and good luck to them if they think that the Assams have offered them a lifeline but ultimately there out for themselves and will not care about the damage they will leave behind.

At a guess he's bankrolling Hkr to spend full cap for the next two seasons, then their new stand and extentions will be completed and they can get to the magical 10,000.

So much for not favouring one club over another eh?

As for the proposed KC purchase, I reckon I'll be pushing up the daisies before he gets his hands on it. Even if the council agrees to sell, I can foresee a wealth of legal challenges that will drag on through the courts for years. Councillors are legally (including financially) liable for the public finances of the City of Hull, I doubt they'd want to see themselves standing in the dock for pi[is[/ising public assets against the wall.

At their meeting with Allam, they should ask a couple of pertinent but very simple to answer questions:

1) Where exactly will the money be coming from and under what terms?

2) Where will the crowds be coming from to ensure sustainability of the project?

Hull is far from being the jewel of the north east, there simply is not the disposable money available to keep a "Sports Village" turning over on a break-even, let alone a profitable basis.

The thing is if they go to a referendum type poll to the city it wont be the FC / KR or city supporters who decide, it'll be the local tax payers. As it stands the stadium doesn't make any cash and will need investment at some point so it may be put across in a manner that the voter will go for. I personally think the council would let the KC go for nothing if they could politically get away with it, its just an outlay waiting to happen for them.

I agree that in the long run it will do FC no good as their seems to be a real problem with the FA around ground sharing. KR coming to the KC is a total no go for this reason alone, playing another set of games each weekend will not go down well at all.

The only way it would work is if they built a new stadium specifically for RL that the 2 clubs shared. Or god forbid they go for the M word.

So Mr Allam gives the new council leader's favourite team a cash injection!!