It can't be counted as an asset if the lease itself states that it reverts to the landlord automatically on the tenant becoming insolvent.

Even in the absence of such a clause the tenant's liquidator will usually disclaim (surrender) the lease because rather than being an asset it is treated as a liability due to the continuing requirement to pay rent.

A lease cannot usually be assigned (transferred) by the tenant to another party without the landlord's permission. Where it is assigned the new tenant becomes responsible for the tenant's obligations under the lease.

Feels like a clear conflict of interest to me.

The only problem I could see is if SMC went belly up and FC had not been paid the season pass money. I have no idea as to the financial set up between FC and SMC other then SMC collect money for ticket sales on FCs behalf. I do know FC did look at setting up there own ticketing set up a couple of years ago and I am sure that they did not persue it further due to lack of room and costs.


Any distruption to in the operation of the stadium will have some effect on the clubs using it. Clearly things are not as they should be and no doubt in the fullness of time they will become clearer and resolve themselves.

Hopefully no one will suffer

What length of contract do the current SMC have to provide this service?

I'm not sure if there's a contract involved as such. The SMC holds the Head Lease to the stadium and that gives them certain rights and responsibilities. I imagine that the agreement runs for as long as the term of the Head Lease, although probably subject to review during that period.

As our lease is 25 years the Head Lease must be at least that long.

The head lease given when the stadium was built was 50 years so i presume theyve got about 40 left.

Did they buy the lease from the company that Pearson set up then? How did the management of the stadium transfer as ltd companies?

The company changed hands. The lease didn't have to move anywhere.

Quote: Big Dave T "What length of contract do the current SMC have to provide this service?'" 50 years www.hullfc.com/hullfc/contents/?page_id=34

Quote: Big Dave T "What length of contract do the current SMC have to provide this service?'" 50 years www.hullfc.com/hullfc/contents/?page_id=34

I can't see the council will allow us to be thrown onto the streets even if the SMC did go belly up....especially with a crowd of 13000 avge. This is twice the amount of people who voted in the last local elections

What I was meaning is that the leaseholder is the SMC which as a corporate entity can be bought and sold and retain ownership of the lease, which I presume does have commercial value. Obviously, if they liquidate then it will be forfeit

Correct. If the ownership of SMC changes hands the lease remains with SMC.

If SMC goes into liquidation the lease reverts to the council.

Ah ok, thats the answer i was looking for. They bought the company then from Pearson et al.

The more i hear about the SMC been a seperate independant company i question why the council dont set up a function and manage it themselves and take the profit? Wonder what the rationale is for effectively sub-letting the stadium?

By leasing the stadium out it made it difficult for the city council to sell the stadium within that fifty years

At the end of the fifty years the stadium will be past it anyway, so in around 30 years time you ( that are still around) will be looking at a new stadium