As well as owning the football club Allam also owns the Stadium Management Company who run the Council owned KC Stadium (now renamed KCOM) which Hull City AFC share with Hull FC Rugby League team.
The KC Stadium was built by Hull City Council in 2002 at a cost of approximately £44 million.
May 2011: Allam reveals plans for a £114m Sports Village including an expansion of the KC Stadium by 10,000 seats. “Would you build an extension to your home if it was rented? You wouldn’t. That is what I am saying. I need to own the stadium if I am going to do this.” Alternative plans at Melton would cost £161m including a new stadium https://www.yorkshirepost.co.uk/news/hull-owner-in-100m-sports-village-plan-for-kc-stadium-1-3346151
May 2011: Assem and Ehab Allam meets with Hull City Council’s Steve Brady and Mark Jones at Allam Marine to discuss proposals for KC Stadium.
Allam Spoke in June 2011: “While I am very excited about this project, I need a response as soon as possible. I am not forcing the issue, I am saying ‘would you like this gift, yes or no ?” .
September 2011: Allam meets with Councillor Terry Geraghty (portfolio holder for leisure and culture): “The proposal to build a sports village at the KC Stadium is at an end after the council made it clear the stadium is not for sale and the fairground is not negotiable… As far as I am concerned the matter is now closed.”
That month Assem and Ehab pose for the cameras at the site of proposed new stadium at Melton: “We will need a bigger stadium somewhere down the line and we’re not willing to extend the KC Stadium on a leasehold… We are willing to do the whole scheme but we need a significant contribution from the council… If they can’t generate their own funds to make a contribution, then give us the freehold of the stadium as their contribution. “
October 2011: Hull City Council Leader Steve Brady says a public referendum would be held if Mr Allam submitted a “serious offer and a matching business case” to acquire the council-owned stadium.
No such offer is made…
December 2011: Steve Brady Council Leader: “”The door is still open on the KC Stadium and we are keen to work with Mr Allam. Personally, I haven’t got any problem with him”.
February 2013: After a dispute about display payments inside the KC Stadium, Allam orders all Hull FC Rugby League pictures & memorabilia to be removed, including a photo of Hull FC legend Johnny Whiteley from the suite which is named after him.
May 2013: After the club is promoted to the Premier League, Allam snubs a Civic reception at the City Hall and chooses instead to hold celebrations at the KC Stadium.
“We not only had different views but there was lying and cheating which was not on. So I severed my relationship with the council and said that’s the end of it. ” – Assem Allam
May 2014: Against standard protocol The Lord Mayor of Hull is left off the VIP invitations list to the FA Cup Final.
March 2015: Allam evicts local sports clubs from the Council owned Airco Arena
September 2017: The SMC install a gate on a walk way to the stadium without having obtained council planning permission. The gate is to be locked when the stadium is not in use, Ehab explains it’s for security & public liability reasons.
“As a council, we have tried to be reasonable but it has become blindingly obvious that these people are not reasonable.” – Colin Inglis, Hull City Council
November 2017: The Allams remove the “Hull City Council” sign from the stadium and a bronze crest bearing the city’s three crowns. http://www.hulldailymail.co.uk/news/hull-east-yorkshire-news/assem-allam-tenancy-rights-stop-725318
“It is provocative, The council owns the stadium, not them (SMC). They wanted to, but they don’t. They lease the stadium off us. What right do they have to take our signs off?” – Terry Geraghty, portfolio holder for leisure and culture, Hull City Council
Stadium Management Company (SMC)
The SMC only pays a peppercorn rent on the stadium and the nearby Airco Arena. Under the terms of the 50-year lease, this sum – believed to be a nominal figure of about £1 – is not subject to any review.
The SMC is required to pay a percentage of its net annual profit before tax to the council. Payments are based on a sliding scale, which requires the SMC to pay five per cent of any profit up to £1m, 7.5 per cent of any profit between £1m and £1.5m and 10 per cent of any profit over £10m.
Since Allam’s takeover the SMC has never returned a profit.
The Allam’s continuing spat with Hull City Council has been shown to be at the root of the name change, removing ‘City’ from the team name is seen as a veiled attempt to disassociate the club from the Council.
(Last updated 04/11/2017)