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Council receives only £16-a-week for building Hull City's £46m stadium

 

Hull City Council receives just £16 a week in lease payments on a stadium they built at a cost of £46m - that's the stark picture painted after the figures were released on the KC Stadium lease agreement this week.

The Council signed a 50-year-lease on the stadium when it was completed in 2002, with a private company, the Superstadium Management Company (SMC), taking over the operating of the stadium and paying the Council a small percentage of any profits made by the SMC.

The Kingston Communications Stadium made headlines earlier this summer when it was used as part of a study to show how building a new stadium can increase attendances at football clubs. The East Yorkshire club saw attendances rise by 77 per cent following their move to their new home, though this was in part due to their move up the football pyramid, ultimately arriving in the Premier League.

Hull City Council have previously sought legal advice on the lease but have been told that the agreement is watertight and with the terms being so favourable towards the SMC it is unlikely they would want to renegotiate the deal.

Hull City's current owners however are in the market for buying the stadium from the Council outright and negotiations are thought to be ongoing, though councillors have raised concerns over selling the stadium to a private concern, especially as the stadium also houses Super League side, Hull FC.

The stadium was built by the Council in 2002 after they received a multi-million cash windfall following the sale of shares in Kingston Communications.

Matt Morris

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