Dear Supporters,
Most of you will be aware that on December 3rd, 2013 we made an application to the FA to register the playing name of the club as Hull Tigers. We had not intended on making the application until the end of the season to allow us time to consider our options, however an application from another club for the name ‘Hull Tigers' was submitted to the FA, which ultimately forced our hand.
Due to this drawing criticism through some sections of the media and a section of our supporters, we feel that now is the right time to rea**ure our fans of the reasons for the application.
With our family having lived in the area for more than 40 years, we decided to invest £24 million of our own money to save the club from liquidation, and probable extinction, in 2010. Since this point we have invested a further £50m to get the club into the Premier League, a competition in which we will hopefully remain. We have nothing left to give, and this is the reason why the club has to become financially self-sustainable. For the club to become sustainable we need further investment in the form of increased sponsorships and partnerships, and by utilising the global pull of the Premier League, this is possible.
The majority of both new and existing Premier League sponsorship deals are from emerging markets, such as North America, Asia and the Far East. These markets have a natural affinity to the Tigers, which is already a major part of our 100-year heritage.
This season, we have made significant additions to our squad which has made us competitive on the pitch. We now need to become competitive off the pitch too, by becoming financially self-sufficient.
Currently there are six teams in the Premier League with ‘City' in their name, and with the exception of Manchester City, all of those clubs are in a similar league position to us, and playing to similar-sized crowds. We need something that makes us stand out from the pool of teams we find ourselves in when it comes to attracting potential international sponsors, who are simply hoping to use the Premier League, and its global audience, to advertise.
The television revenue received for competing in the Barclays Premier League has become the club's main source of income, and has allowed us to increase our annual wage bill from £12m to £42m. Previously, in the Championship, gate receipts accounted for 60% of our income. Now, that figure is 7%. If we wish to continue strengthening the team, and support Steve Bruce, we need to generate more income, which would be used on transfers and salaries.
As has been documented in the media, we are currently in talks with various companies regarding our major sponsorship opportunities for next season. There are currently around a dozen or so teams in our division who will be competing for the same level of sponsorship, and we feel the Hull Tigers brand would give us an edge in any negotiations.
We play in black and amber, and that will not change; the Tiger will continue to be at the heart of our crest, and that will also not change. We have been the Tigers for more than 100 years and it is this rich heritage that will drive the club forward.
When we bought the club, it was made clear that we were sound business people and not football people. Since then, we have had to make a number of unpopular decisions that have generated a negative reaction from some in the media and from some supporters, though they have benefited the club in the long-term. We would ask the fans to trust us to deliver once again. The playing name is the global broadcasting name, and is key to achieving our goals. The monies generated are needed to push us forward into becoming an established Premier League team with aspirations of European football.
We see this as a vote of confidence from our supporters and the FA. We hope the fans understand that we cannot own or run a club where we cannot make the right decisions. If we were denied the chance to operate the business in a way we feel fit, and that we firmly believe is in the long-term interests of the club and the fans, then we would have no alternative but to offer the club for sale.
These are exciting times for the club, and we need your continued support on and off the pitch.
Ehab Allam
Vice-Chairman