Troubled Tigers cut debts to £4.5m: VIDEO

The Tigers are deep in trouble at the foot of the Premier League and yesterday appointed Iain Dowie as their new manager until the end of the season.

Dowie's brief is simple – to keep City up – but should the worst happen and the Yorkshire club kick off next season in the Championship, Pearson insists fears of a Leeds United or Bradford City-style financial collapse are well wide of the mark.

Concerns about the future were fuelled earlier this week by a report from Hull's auditors that claimed the club faced a 21m shortfall if they were relegated this term.

This figure, according to Deloittes, would fall to 16m if the Tigers win their fight for survival in the top flight.

Pearson, who returned to the KC Stadium in October after answering an SOS from owner Russell Bartlett, said: "The (financial) results we put into Companies House (for the year to the end of July 2009) last week were extremely positive.

"Our debt now stands at 4.5m on a 52m turnover, while the trading profit was 2.5m. We are operating profitably.

"The debt, which is down from 11m, is the lowest in the Premier League. That does not sound catastrophic to me.

"As for the 21m shortfall, that is inaccurate. We have no shortfall if we stay in the Premier League. And if we go down, this club could cope. It would not be pleasant but it certainly wouldn't be catastrophic.

"If we went down, we would have to work extremely hard to get the wages in line but that is eminently achievable."

Should Hull be relegated, the wage bill at the KC Stadium would immediately fall from 38m to 24m due to clauses inserted in many of the squad's contracts. Player sales would also, according to Pearson, further reduce any shortfall should Dowie be unable to keep City up.

The news will be welcomed by supporters worried about the potential impact of relegation, especially with Leeds and Bradford offering such a sobering lesson as to the potential cost of a club's finances running out of control after slipping out of the top flight.

On the subject of owner Bartlett's commitment to Hull, Pearson added: "Russell is 100 per cent committed to the club. He has put more money in than any owner in history.

"That shows his commitment. He is a very good owner who backed Phil to a large degree on transfers and wages. Russell is here for the long term. We speak regularly. Yes, we would like to diversify the shareholding as being in charge of a Premier League club is a massive burden for one person.

"In fact, along with Chelsea, we are the only ones doing that. But as far as him walking away – not a chance."

Pearson, meanwhile, is hoping any concerns about relegation can be swept away by new manager Dowie inspiring an upturn in results – starting on Saturday at Portsmouth, who were yesterday officially docked nine points for entering administration to be all but relegated.

The Tigers chairman said: "We were not looking for a manager with the wow factor, or a manager with an ego or reputation to look after. We were looking for someone with a point to prove.

"The lack of ego is important because this is a down to earth football club. Iain is a down to earth manager, while we have players who want to play in the Premier League but are not destined to play in the Premier League.

"They have a point to prove and that is a good match."

Pearson, who expects Tom Cairney to next week sign a contract extension now he has employed a new agent after talks initially stalled when it was revealed his then advisor was unlicensed, added: "Iain comes in on a short-term deal but is looking long-term.

"He can still be the manager of Hull City next season in the Championship as nothing has been ruled in and nothing ruled out. Iain has proved he can operate at that level, though I don't want him to – I want him to operate in the Premier League.

"We need tweaks that can turn unlucky defeats into points. Phil Brown did fantastically well – to achieve what he did was fantastic. But it has been a long year. Six wins in 51 games takes its toll on anyone, whether they realise it or not.

"A fresh change with a quarter of the season to go was necessary. Within the nine games, we think there are six eminently winnable ones."