The subject of Hull City’s finances has become a significant talking point in recent weeks. A spotlight has been placed on the club, it’s operation and most notably, its finances. It’s felt like a body blow, in truth it’s likely to be the best thing that could happen, providing what happens next is a course correction.
With Acun Ilicali suggesting he would welcome investment back in May, to him saying the club were in good financial fettle at a press conference to officially unveil Sergej Jakirovic, it’s fair to say it’s been a tumultuous couple of weeks for all at the club, including the supporters.
Throw into that the transfer punishment handed down by the EFL, City’s situation is anything but ideal and anything but the ideal preparation going into a season as important as this on the back of last term’s shambles. There has been raised concern following reports of City having significant transfer commitments outstanding of over £20. Having outstanding transfer commitments is nothing new, and the majority of football clubs will be in a similar position.
Those payments will be staggered across a period of time, and in some cases, for the duration of the player’s contract. The level of debt there is nothing new, the club’s ability to pay those commitments is the acid question. Ilicali says there is no issue, and the club can do so.
Advancing transfer fees at a cost as City have done with deals such as the Jacob Greaves transfer to Ipswich Town, is also not unusual in football, but again reporting this has happened and monies have already been taken for the Jaden Philogene transfer to Aston Villa highlights a concern about the cash flow situation.
The concerns raised by The Athletic, which also include a report former owner Ehab Allam is owed £3m as part of additional payments in the Jarod Bowen deal, only strengthen the concern of some.
It further muddies the water and raises understandable concern about whether there is enough money. Owing transfer money isn’t the issue, away from the hysteria, because that’s the industry. What must be settled, and quickly, is the money owed to local suppliers who will not have the luxury of being able to wait.
We’re told that is happening, and will continue to be addressed. It must, and cannot be allowed to happen again. Put simply, if the stadium or training ground cleaners don’t get paid, their staff don’t get paid and cannot put food on the table. That has a direct impact on the people of Hull.
Cashflow problems can exist, especially in the summer when a football club has little way of generating income, but that comes down to organisation and financial planning. That simply has to be remedied. There have been a flurry of issues, all put down to errors. Those errors must not be allowed to happen going forward. It’s either basic incompetence, or there are greater issues at play.
Only Ilicali and those in charge of the club’s finances really know the answer to that. City, like the majority of clubs in the Championship are being run at a loss, and require significant investment from the owner to stay afloat. The issue the Tigers have is that the EFL have held concerns about their ability to keep up with payments for a period of time, and have now moved to try and do something about it.
Their three-window fee restriction may well be reduced, it may get suspended for a period of time, but what it has done is brought the situation out into the full gaze of the public and that is perhaps not a bad thing, even if alarm bells are reaching fever pitch amongst a fan base thin on patience and marked by previous scars.
Naturally, there will be a lot of concern and worry. After all, this is a fan base who have become all too familiar with financial struggles and stress over whether or not they will have a club to support in the past .Following from the Allam ownership, fans thought this was a new beginning. That belief amongst some is waining.
Actions, not words, are needed from the owner. Now is not the time for statements, it’s the time for ensuring lessons have been learned. The EFL operates differently to the Turkish Super Lig. Regulations are different, and expectations amongst fans differ. City must get their outstanding bills settled, they must find a way out of what is a distinctly uncomfortable situation for Acun Ilicali and for those staff at the MKM Stadium having to deal with the day-to-day fall out from this, many of whom are worried.
This is his most challenging period as owner. There’s a growing sense of patience wearing out, on social media at least, and he always said he would leave the club if he was not wanted.
What fans want is to believe in a cause. To feel like they’re not being taken for mugs, because it will be they who are left to pick up the pieces. This situation can be turned around by the owner, but the skeletons inside the closet must be outed and City must be put on a solid financial foundation moving forward.
Even if the ban is lifted, transfers and more importantly, salaries must be sensible. City cannot continue to pay mammoth wages, because they don’t have the income to support that. Their cloth must be cut accordingly. This summer has not gone the way many thought it would when Jakirovic was appointed, and until they can sign players, the Bosnian will be charged with getting the best out of a squad who struggled badly last term.
He will hope for a quick resolution to a situation that is nothing if not concerning, so he can at least have a fighting chance come the start of the new season.