Reduction of wage bill top priority for Hull City

HULL CITY'S board are to hold a series of further meetings this week to discuss the club's financial crisis.

The chairman and directors convened yesterday to address the implications of Hull's impending relegation from the Premier League.

Hull are 35m in debt and there have been reports they could be forced to go into administration.

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An alternative could be to seek to enter a Company Voluntary Arrangement but, like administration, that could incur a 10-point penalty next season.

Yesterday's talks ended without resolution but the club will continue to consider their options over the coming days with a major restructure and a fire-sale of star players such as Jimmy Bullard and Stephen Hunt almost certain.

Chairman Adam Pearson suggested at the weekend a CVA might be the preferred route, as it would at least allow the club to retain control, but owner Russell Bartlett yesterday offered a more positive assessment.

In a rare interview, Bartlett said: "We face a tough period to trade through the transitional period and readjust the business to life in the Championship, but I am confident we can do that.

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"We are presently preparing plans to trade through and within that process is to significantly lower the wage bill and potentially to restructure other liabilities."

Hull's debts spiralled out of control following their promotion to the top flight for the first time in their history in 2008.

Former chairman Paul Duffen resigned in October following a damaging report from auditors which questioned the club's ability to continue as a going concern.

Pearson, tried with little success, to offload a number of fringe players in the January transfer window and reducing a crippling wage bill of a reported 39m will now be top priority.

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Bartlett added: "A significant number of the player contracts contain step-down clauses in the event of relegation, coupled with five players coming out of contract or loan players returning to their clubs, which will help reduce the wage bill for playing staff to about 21m.

"We must now get down to concentrating on reducing the wage bill to about 15m in the Championship to establish financial viability and stability."