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'We're officially FFP compliant' - LCFC Financial Results 2013/14

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Leicester City FC Financial Results 2013/14

Posted: Tue 03 Mar 2015 

Author: Leicester City

Leicester City Football Club today announced its financial results for the year ending 31 May, 2014 – a record-breaking season of great progress and success both on and off the pitch.
In addition to winning promotion to the Premier League as champions of the Football League Championship, the Club took further considerable steps towards independent sustainability and lasting success as an established top-flight club.  

 
Leicester City’s future continues to be safeguarded by the ambition and long-term vision of the Srivaddhanaprabha family, fortified by the support of the Club’s parent company, King Power International. 
 
The 2013/14 accounts reflect the latest positive effects of the family’s long-term investment strategy, initiated over the course of their involvement with Leicester City since 2010. 
 
The Club recorded losses in the year to 31 May, 2014 of £20.8 million (2013: £34m). Through reducing its costs and increasing its revenue streams, the Club has been able to submit a return which is in compliance with the Football League’s Financial Fair Play (FFP) regulations. 
 
After costs relating to the Club’s promotion, Academy expenditure and other costs allowable under FFP guidelines are added back, the Club recorded losses within the allowable parameters set by the League. 
 
A promotion-winning season assisted the Club in growing all its main sources of revenue, which rose to £31.2m from £19.6m in 2013. 
 
This increase has arisen from growth in almost all the Club’s sources of income, including the signing of a long- term international marketing and licensing deal with Trestellar Limited. 
 
The on-pitch success of the team contributed to a significant increase in match receipts, which rose to £6.9m (£5.7m in 2013), while the average league attendance climbed to 25,003 (22,569 in 2013). 
 
Operating expenditure (excluding staff costs) was reduced by £8m to £12.3m (£20.3m in 2013). Staff costs increased to £36.3m (£26.8 in 2013), almost entirely due promotion bonus payments of £9.4m. 
 
Other increases in staff costs were managed by a prudent approach to the judicious strengthening the Club’s football management felt the squad needed to achieve its goals. 
 
The interest cost incurred by the Club also reduced to £4.1m from £7.2m in 2013, thanks to the conversion of all the Club’s shareholder-provided loan funding into equity at the end of November 2013. 
 
Susan Whelan, Leicester City’s Chief Executive Officer, said:“The establishment of Leicester City as a successful, self-sustainable Premier League football club remains a long-term work in progress, but these results are a positive reflection of our efforts to build solid foundations to that end. 
 
“It should be noted that one of the most successful seasons in the Club’s recent history was achieved while ensuring compliance with the Football League’s FFP regulations, for which our football management staff and senior management deserve great credit. The Club’s responsible approach to adapting to the demands of the Premier League has also ensured such compliance, should it be required, would not be compromised in the future. 
 
“Very firmly established among the King Power International Group of Companies, Leicester City continues to take secure, sure-footed steps forward in the Srivaddhanaprabha family’s vision of a sustainable, successful, Premier League football club of which both the city of Leicester and the Kingdom of Thailand can be enormously proud.” 
 
Aiyawatt Srivaddhanaprabha, Leicester City’s Vice Chairman, said:“The scenes of elation we witnessed and were part of during the 2013/14 season were beyond anything my family could have imagined when we first became involved with Leicester City. They were experiences beyond value. 
 
“We remain entirely committed to delivering such success on a regular, long-term basis and will continue to pursue this vision with the ambition and forethought this great Club deserves. 
 
“I would like to extend our family’s thanks to the fans and partners of Leicester City for their extraordinary support during an incredible 2013/14 season. They represent the very essence of our organisation and remain at the heart of our vision for their Club.”

Read more at http://www.lcfc.com/news/article/leicester-city-fc-financial-results-201314-2309976.aspx#rpzBwlPzQesXHBE5.99

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Leicester City meet financial rules despite £21m loss

By I_Griffin  |  Posted: March 03, 2015

9585330-large.jpg

Leicester City chairman Vichai Srivaddhanaprabha, left, and vice-chairman Aiyawatt Srivaddhanaprabha with the Championship trophy last May

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Leicester City racked up losses of almost £21 million during their Championship title charge, but still managed to meet strict financial rules.

The club, who revealed last season’s accounts on Tuesday, reduced its deficit by more than a third from a record loss of £34 million in 2012-13.

The Football League’s Financial Fair Play (FFP) rules state that a club could only make a loss of £8 million in 2013-14 or face a transfer ban or a fine of up to £20 million.

City, whose deficit last season totalled £20.8 million, were able to comply with the ruling because £13 million of these losses were “allowable” under FFP.

These permitted losses were made up of a £9.4 million bonus paid to players and staff for winning promotion, youth academy costs of £1.6 million and other one-off payments.

Chief executive Susan Whelan said a 59 per cent surge in revenue to £31.2 million, helped by strong growth in match receipts and a new marketing deal, together with a reduction in some costs, showed they were in a healthy financial position.

City are likely to make a profit this season because of the £65 million they will receive thanks to cash from the lucrative Premier League TV deal. However, the club are financially prepared for relegation, should it happen.

“I’m absolutely confident that we are on a strong financial footing and viable for the future,” said Ms Whelan.

“It should be noted that one of the most successful seasons in the club’s recent history was achieved while ensuring compliance with the Football League’s FFP regulations.

“The club’s responsible approach to adapting to the demands of the Premier League has also ensured such compliance, should it be required, would not be compromised in the future.”

The club currently lie at the bottom of the Premier League and five points from safety, although they have a game in hand over some fellow strugglers.

If the Foxes are relegated they will get a £23 million “parachute payment” in 2015-16, and another £36 million over the following three seasons should they fail to get back to the top flight.

The only significant debt owed by City is a £17 million loan used by one of the owners’ companies to buy the stadium in early 2013. Net debt, after taking account of the club’s cash reserves and other assets, stands at £10 million.

In 2013, the Thai owners – chairman Vichai Srivaddhanaprabha and vice-chairman Aiyawatt Srivaddhanaprabha – wiped out club debts of £103 million after converting them into shares.

The pair, who own Thai-based duty free business King Power Group, bought City from Milan Mandaric in a £39 million deal in 2010.

A new multi-million pound marketing and licensing deal, signed with Sheffield-based agency Trestellar, is aimed at exploiting the owners’ Far Eastern connection by allowing companies in the region to use the club’s name and branding.

Aiyawatt Srivaddhanaprabha, currently taking part in four weeks of religious study in Thailand, said: “The scenes of elation we witnessed during the 2013-14 season were beyond anything my family could have imagined when we first became involved with Leicester City. They were experiences beyond value.

“We remain entirely committed to delivering such success on a regular, long-term basis and will continue to pursue this vision with the ambition and forethought this great club deserves.”

Read more: http://www.leicestermercury.co.uk/Leicester-City-meet-financial-rules-despite-21m/story-26111769-detail/story.html#ixzz3TKeXPLuH 

Follow us: @Leicester_Merc on Twitter | leicestermercury on Facebook

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The stench is overpowering. It does beg the question of what happens about the record fine that was announced towards the end of last year... Nothing, presumably?

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Not having that we've lost more than QPR.

 

We were nigh on filling a 32k stadium with a much lower wage bill, plenty of television coverage, I suspect record breaking merchandise sales and we've still lost 10m more than QPR?!

 

Something isn't right.

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Turnover for Sponsorship, executive suites, advertising and other income up £11m on the previous season!? Was £5m now £16m. Hmmmmmmm.

 

Be interesting to see what this deal is with Trestellar Limited. A company who Sir Dave Richards was a Director of (yes I'm sure you remember that name). A company with very little history but whose services are listed as "Management consultancy activities other than financial management"

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Now we are FFP complient everyone is asking to sack the auditors!

 

I am sure all sorts of transactions are not ''arms length'' but the auditors would need to do some decent digging to sign them off and be satisfied.

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I was talking to someone who's a qpr season ticket holder on holiday last year and he was saying the club had sold some of their assets they had in london and it almost wiped out their debts, so maybe it isn't bullshit

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I was talking to someone who's a qpr season ticket holder on holiday last year and he was saying the club had sold some of their assets they had in london and it almost wiped out their debts, so maybe it isn't bullshit

 

Hmmmm must have been some serious profits on disposal!!

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A new multi-million pound marketing and licensing deal, signed with Sheffield-based agency Trestellar, is aimed at exploiting the owners’ Far Eastern connection

Such a blatant way of getting an extra £10m into the coffers lol

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Why are people acting like our owners are crooks all of a sudden?!?

The only reason the numbers are so high is because we gave nearly ten million to staff for getting us promoted, which we all knew was going to happen, and is in line with ffp.

What's the issue here?!?

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Why are people acting like our owners are crooks all of a sudden?!?

The only reason the numbers are so high is because we gave nearly ten million to staff for getting us promoted, which we all knew was going to happen, and is in line with ffp.

What's the issue here?!?

 

Who has said they are crooks, or even intimated they are. BUT... how can you not raise an eyebrow about a couple of things.

 

A new multi-million pound marketing and licensing deal, signed with Sheffield-based agency Trestellar.

Turnover for Sponsorship, executive suites, advertising and other income up £11m on the previous season.

Board member of Trestellar up until about a month ago was Sir Dave Richards.

Sir Dave Richards was the man said to be joining us to help with FFP when the DOF rocked up.

Trestellar don't seem to have made any money since being incorporated (from the last accounts I saw).

 

Maybe Sir Dave has been using contacts to drum up business abroad, maybe he hasn't... maybe it's something, maybe it's nothing.

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Who has said they are crooks, or even intimated they are. BUT... how can you not raise an eyebrow about a couple of things.

A new multi-million pound marketing and licensing deal, signed with Sheffield-based agency Trestellar.

Turnover for Sponsorship, executive suites, advertising and other income up £11m on the previous season.

Board member of Trestellar up until about a month ago was Sir Dave Richards.

Sir Dave Richards was the man said to be joining us to help with FFP when the DOF rocked up.

Trestellar don't seem to have made any money since being incorporated (from the last accounts I saw).

Maybe Sir Dave has been using contacts to drum up business abroad, maybe he hasn't... maybe it's something, maybe it's nothing.

So why don't we just take off the tin foil hats and assume it's above board until proven otherwise? What's the point in making an issue about it?!?

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Turnover for Sponsorship, executive suites, advertising and other income up £11m on the previous season!? Was £5m now £16m. Hmmmmmmm.

 

Be interesting to see what this deal is with Trestellar Limited. A company who Sir Dave Richards was a Director of (yes I'm sure you remember that name). A company with very little history but whose services are listed as "Management consultancy activities other than financial management"

Other income I believe includes transfer fees for Beckford and Marshall as well as loan fees for Waghorn, Danns, Gallagher etc. Also exec boxes were being sold more readily, a lot of the time for the last few seasons they have been either empty or gifted to charities etc. Add to that the new marketing deal to spread the word in Thailand and companies jumping on the band wagon of a club on the up makes that figure more realistic, I would imagine though (and I think it's what you're getting at) King Power may have paid over the odds to sponsor the stadium ahem!!

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So why don't we just take off the tin foil hats and assume it's above board until proven otherwise? What's the point in making an issue about it?!?

Why should I just ignore it? How is anyone going to prove it otherwise unless it's questions? What's the point in making an issue, I find it interesting. I'm sorry it upsets you, I suggest you ignore the posts.

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Now we are FFP complient everyone is asking to sack the auditors!

 

I am sure all sorts of transactions are not ''arms length'' but the auditors would need to do some decent digging to sign them off and be satisfied.

Who's asking for the auditors to be sacked? 

I hope not, they are a lovely company  :ph34r:  :whistle:  :D

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Other income I believe includes transfer fees for Beckford and Marshall as well as loan fees for Waghorn, Danns, Gallagher etc. Also exec boxes were being sold more readily, a lot of the time for the last few seasons they have been either empty or gifted to charities etc. Add to that the new marketing deal to spread the word in Thailand and companies jumping on the band wagon of a club on the up makes that figure more realistic, I would imagine though (and I think it's what you're getting at) King Power may have paid over the odds to sponsor the stadium ahem!!

Players would all come under "other football related income". Boxes wouldn't be a huge amount, my gaffer has one.

 

Who knows what it is, without seeing exact amounts it could be something or nothing like I said. It seems, lets just say a little bit of a coincidence that this company gets set up around the time of FFP getting approved, around the time he was rumoured to be doing the board to help with FFP, and suddenly we have a large deal with them, a company who seemingly don't do anything.

 

I'll leave it at that... it's clearly upsetting the sensitive souls on here that we potentially might be bending the rules a bit to comply. There is no evidence of anything untoward, perhaps it is just coincidence and he's made us millions. We'll probably never know.

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Players would all come under "other football related income". Boxes wouldn't be a huge amount, my gaffer has one.

 

Who knows what it is, without seeing exact amounts it could be something or nothing like I said. It seems, lets just say a little bit of a coincidence that this company gets set up around the time of FFP getting approved, around the time he was rumoured to be doing the board to help with FFP, and suddenly we have a large deal with them, a company who seemingly don't do anything.

 

I'll leave it at that... it's clearly upsetting the sensitive souls on here that we potentially might be bending the rules a bit to comply. There is no evidence of anything untoward, perhaps it is just coincidence and he's made us millions. We'll probably never know.

I'd imagine every other club is doing something similar, I'd rather us bend some (slightly ridiculous) rules to comply than face a hefty fine.

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Not having that we've lost more than QPR.

We were nigh on filling a 32k stadium with a much lower wage bill, plenty of television coverage, I suspect record breaking merchandise sales and we've still lost 10m more than QPR?!

Something isn't right.

Parachute payments

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Guest ttfn

QPR's accounts seem like total BS to me. I will have a read of them later in the week when they're available on companies house.

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