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Hull cut back on player spending

Hull City lost £90,000 a week in 2017/18 but sales of Clucas, Maguire and Robertson helped generate profit on player disposals of £31 million. Hull had a negative net player spend for the third year running in 2017/18

Overall income was down £60 million, most of which due to the fall in TV income after relegation. Parachute payments are a staggering eighty per cent of total income. Ticket sale income fell by one-third with many fans staying away because they were alienated by the owners. Matchday hospitality etc was down 75 per cent. The wage bill halved due to relegation clauses and player sales.

Leaving aside parachute payments, there has been a heavy reliance on broadcast income despite three of the last six years being spent in the Championship.

The club repaid a bank loan of £21 million during 2017/18, setting the club up for sale. It owes £63 million, presumably to Allamhouse. These debt burdens can be a tricky issue when a club is sold.

Since gambling on getting promoted in 2013 Hull City have shown a lot of wage restraint. Just £55 of every £100 spent on wages last season, compared to average of £101 in the Championship.

Kieran Maguire of the Price of Football comments: 'Putting numbers into our financial model values the club at £110 million, down from £220 million the previous season, but as parachute payments cease I would expect this to fall again sharply.'

I always enjoy my visits to Hull, although they are not entirely disinterested as I am a shareholder in a company based there. Hull has had its challenges and its relative geographical remoteness is always going to be an issue, but being City of Culture gave it a boost. If the club gets decent new owners and gets back to the Premier League, that will be a big morale boost.

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