The Next Football Club In Trouble? | Vital Football

The Next Football Club In Trouble?

Writing was on the wall prior to Danny and Nicky joining, see my post from Sept 2019. Dean Hoyle could be back!


I wish Danny and Nicky every success, however Huddersfield is an interesting choice of club for the Cowleys. No doubt, knowing their detailed approach to everything they will have carried out extensive due diligence to reinforce their decision. There does however appear to be much speculation around the finances at Huddersfield, which has lead to the new owner, Phil Hodgkinson, being given the nickname "Potless Phil" by certain fan groups.

The club was purchased this summer by Hodgkinson from Dean Hoyle, the acquisition is believed to be financed by future revenues as there is a debenture registered at Companies House in July to secure this. On the last accounts published Hoyle was owed around £52 million. Accounts and debenture available on this link:
https://beta.companieshouse.gov.uk/company/01771361/filing-history/

Hodgkinson is the owner of a number of companies in the "Claims" business that trade under the "Pure" banner. In looking at Companies House none of these companies show any significant profitability. In fact this caused concern at his last club; Southport, see this article:
https://www.otsnews.co.uk/yellows-fans-fret-companys-million-pound-losses/

One attraction of relegated Premier League teams is the parachute payments, however this years (£42 million) has already been spent together with any legacy revenue from the PL, according to the Huddersfield Examiner's interview with Phil, see below:
https://www.examinerlive.co.uk/sport/football/news/wheres-huddersfield-towns-premier-league-16592255

With the balance of parachute payments being around £50million, which is approximately equal to the debt owing to Hoyle, and no publicly available financial data demonstrating significant financial resources for the Pure Group to call upon, does it mean that the club relies solely on a turnover of £15million or is Potless Phil sat upon a pot of gold, somewhere over the rainbow.