Oct 28, 2009, 8:32 GMT
London - Hull City have been warned by a leading accountancy firm that relegation could lead to financial meltdown, according to reports on Wednesday.
The club's accounts, filed five months late to Companies House, show that in the event of relegation they would need to generate a 23-million-pound (37.6 million dollars) surplus just to meet existing liabilities.
Deloitte, the club's accountants, have urged a financial overhaul over the next 12 months.
Accounts for the year ending 2008 showed a loss of 9.8 million pounds in a period that culminated with promotion to the Premier League.
'These forecasts demonstrate that in order to operate within the company's finance facilities Hull City AFC will need to generate a surplus 23 million pounds during the next 12 months through player trading, match day and commercial income and/or through additional finance raising,' the report said.
'In the event that the club retains Premier League status for the 2010-11 season, the additional funding required for the 12-month period will be in the region of 16 million pounds.
'This is reduced as a result of the guaranteed level of Premier League distributions that will be received...
'As is common with all football clubs, Hull City AFC will make player purchases and sales during the course of the season to manage the company's cash flow as and when required.
'The directors acknowledge that player purchases and sales are uncertain in terms of timing and quantum and some uncertainty exists over the availability and quantum of additional facilities should such be required.
'These conditions indicate the existence of a material uncertainty which may cast significant doubt about the company's ability to continue as a going concern.'
Hull chairman Paul Duffen has previously insisted there are no financial concerns at the club, maintaining the delay in filing accounts resulted from negotiations with the auditors over the wording of certain notes.
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