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Quote: Obadiah "Hull City Council briefing note Date 12 December 2014

"2.2 Hull City Council built the KC Stadium in 2002 at a cost of approximately £44m. The
stadium is subject to a 50 year head lease with the Stadium Management Company
(SMC) and Mr Adam Pearson dated 1st September 2004. The lease indicates that at
the point of completion Mr Pearson was the sole shareholder of the SMC. Hull City
Football Club and Hull FC Super League have user rights, but are not tenants with a
legal interest in the property"

Link: So "legal interest in the property", that doesn't mean a LEGAL TENANCY AGREEMENT, enjoy championship football, troll.

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Quote: Obadiah "the deal is also similar to Swansea City's which has been criticised by the EU. If the lease was terminated by the Council any future lease would have to be profitable. However its probable the Allams would want to pay the same rent as Hull FC for use of the stadium. If you rent office space you'd expect to pay the same price per square foot as the other tenants unless you got extras in the tenancy. The rent wouldn't be dependant on how much profit you made.'"

There's no rent payable though, is there? There are central costs of maintenance, utilities, stewarding, ticketing and so on. Many of these vary with customer volumes, not simply occasions of use, surely?

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Quote: HullFC_1865 "So "legal interest in the property", that doesn't mean a LEGAL TENANCY AGREEMENT, enjoy championship football, troll.'"


Having a legal interest in a property does mean having a legal tenancy or lease agreement.

The City Council document says that Hull FC have user rights but are not tenants with a legal interest in the property. What the documents says is neither Hull City or Hull FC have any legal interest in the KC because they are not tenants.

Hull FC have a contract which is legally binding with the SMC for the use of the KC. That isn't transferable to the Council if the lease is revoked.

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Quote: Obadiah "Having a legal interest in a property does mean having a legal tenancy or lease agreement.

The City Council document says that Hull FC have user rights but are not tenants with a legal interest in the property. What the documents says is neither Hull City or Hull FC have any legal interest in the KC because they are not tenants.

Hull FC have a contract which is legally binding with the SMC for the use of the KC. That isn't transferable to the Council if the lease is revoked.'"

again, untrue.

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Quote: Obadiah "Having a legal interest in a property does mean having a legal tenancy or lease agreement.

The City Council document says that Hull FC have user rights but are not tenants with a legal interest in the property. What the documents says is neither Hull City or Hull FC have any legal interest in the KC because they are not tenants.

Hull FC have a contract which is legally binding with the SMC for the use of the KC. That isn't transferable to the Council if the lease is revoked.'"

Surely if the SMC deal is terminated, the council will use it's new leisure management entity to operate the stadium. We can't really prejudge their cost allocation mechanics.

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Quote: Mrs Barista "There's no rent payable though, is there? There are central costs of maintenance, utilities, stewarding, ticketing and so on. Many of these vary with customer volumes, not simply occasions of use, surely?'"


All that would be up for negotiation. Why would Assem Allam agree to the same terms for Hull City AFC that he's got now? If he doesn't agree, how can the Council enforce a new agreement? Wouldn't the Council look at issuing long term lease agreements for both Hull FC and Hull City AFC? How would the Council ensure that the KC at least broke even?

If the Council revoke the lease then surely they won't repeat the mistakes of the past and set up something similar?

ccs
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... the trouble is, "something similar" appeared to work ok until Mr Allam took over.
This is what people (well, me anyway) can't understand.

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Quote: ccs "... the trouble is, "something similar" appeared to work ok until Mr Allam took over.
This is what people (well, me anyway) can't understand.'"


That is because there was goodwill on all sides. That has gone as was plainly obvious when the Allams evicted the sports groups from the Airco. The Allams do what is best for them as Ehab said in his interview with David Burns. If the upkeep of the KC is costing them millions each year the only way they can get out of that is by the Council revoking the lease and renegotiating a new arrangement for Hull City AFC's use of the KC. The Council become responsible for the repairs and Hull City just pay a fair rent.

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Quote: Obadiah "That is because there was goodwill on all sides. That has gone as was plainly obvious when the Allams evicted the sports groups from the Airco. The Allams do what is best for them as Ehab said in his interview with David Burns. If the upkeep of the KC is costing them millions each year the only way they can get out of that is by the Council revoking the lease and renegotiating a new arrangement for Hull City AFC's use of the KC. The Council become responsible for the repairs and Hull City just pay a fair rent.'"

again LIES, is your email address a.a@deluded.co.uk?
Quote: Obadiah "That is because there was goodwill on all sides. That has gone as was plainly obvious when the Allams evicted the sports groups from the Airco. The Allams do what is best for them as Ehab said in his interview with David Burns. If the upkeep of the KC is costing them millions each year the only way they can get out of that is by the Council revoking the lease and renegotiating a new arrangement for Hull City AFC's use of the KC. The Council become responsible for the repairs and Hull City just pay a fair rent.'"

again LIES, is your email address a.a@deluded.co.uk?


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Quote: HullFC_1865 "again LIES, is your email address
No.
Quote: HullFC_1865 "again LIES, is your email address
No.


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Quote: Mrs Barista "Surely if the SMC deal is terminated, the council will use it's new leisure management entity to operate the stadium. We can't really prejudge their cost allocation mechanics.'"


How would you feel about the council taking on that level of risk? icon_wink.gif

In all seriousness it would be potentially politically tricky.

Obadiah - if the Allams wanted shot of responsibility for the stadium, wouldn't simply winding up the SMC achieve the same end?

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Quote: Mild Rover "How would you feel about the council taking on that level of risk?
The lease would be an asset and could be sold. Hull City AFC's agreement with the SMC would be void and they'd have to negotiate a new agreement with the new leaseholder. Far safer to let the Council take it back.

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Quote: Obadiah "The lease would be an asset and could be sold. Hull City AFC's agreement with the SMC would be void and they'd have to negotiate a new agreement with the new leaseholder. Far safer to let the Council take it back.'"


Ooh, that is an interesting wrinkle.

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Maybe new SMC owners would let city do the £10 tickets the nutter promised

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Quote: Obadiah "The lease would be an asset and could be sold. Hull City AFC's agreement with the SMC would be void and they'd have to negotiate a new agreement with the new leaseholder. Far safer to let the Council take it back.'"


Is the lease still securing a debt with the RBS?

592 posts in 40 pages 
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Subscribe | Moderators: Admin, Kosh , Roland_R , Karen
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Subscribe | Moderators: Admin, Kosh , Roland_R , Karen



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