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Building D5
Fairoaks Airport
Chobham
Surrey
GU24 8HU
Tel: 0871 399 0089
Fax: 01276 858010
Email
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Building D5
Fairoaks Airport
Chobham
Surrey
GU24 8HU
Tel: 0871 399 0089
Fax: 01276 858010
View map
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It all Kicks Off at Hull
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Relegation threatened Premiership club Hull City seem to be facing a much deeper and more complex financial crisis than appeared to be the case when the club changed hands last November. The club has launched a High Court case against their former executive chairman Paul Duffen.
The club accused Duffen of taking kickbacks, alleging that his company received payments from agents in return for using those agents to deal with transfers. Hull have served papers in the High Court in London that relate to allegations of 'a lack of fidicuiary and management control, personal expenditure, negligence and breach of contract.' Hull are claiming substantial damages and compensation and they want repayment of a portion of Duffen's salary, based on allegations of frequent absenteeism. Duffin has emphatically denied the allegations and succeded in having an eight-day old order freezing his assets lifted when he agreed to put up security, including his house and luxury yacht in France. He also agreed to hand over compuer files. Learned counsel Lexa Hillard QC, Duffen's barrister, told Mrs Justice Proudman that although her client had consented to the orders 'this was not taken as an admission by my client of any allegations against him.' The view taken by Hull City chairman Adam Pearson is that the Barclays Premier League club was left in good order when he sold to a consortium led by Duffen in 2007. They had £1m in the bank and a wage bill of £4m a year, although this was before they were promoted to the Premiership. When he returned the debts stood at almost £10m and the wage bill had increased to about £36m which put them among the top spenders in the Premiership. Another £2m was reported to be payable in appearances and bonuses and £5.3 committed to be paid in agents' fees. Pearson then called in auditors to launch an investigation and this led to the High Court action. The chairman is seeking £25m in additional investment but a relegation threatened club is hardly an attractive prospect at a time when relatively few investors are available. |
