davieG Posted 2 April 2008 Posted 2 April 2008 From the Merc City's £5m losses will get worse by Ian Griffin Leicester City will make a multi-million pound loss this season, the club revealed today. The deficit is likely to be larger than the £5.43 million racked up last year after major investment in the squad by chairman Milan Mandaric. City, who unveiled last year's financial accounts yesterday, blamed the loss on the ending of their £6.5m parachute payments from the Premier League. Chief executive Paul Aldridge, below, said the loss for this financial year - which ends on May 31 - would rise because outgoings had increased while turnover was around the same as last year's £14.7m. He said: "I would expect the losses to increase this season. "We have clearly made investments in the squad, while our income has remained fairly stable. "We would ultimately like to see the club making a profit instead of generating losses, but there's always going to be a trade-off between investing in the squad and your profit and loss account." Aldridge would not say when he hoped the club would be profitable again. City are able to cope with the losses because of millionaire owner Milan Mandaric, who vowed to get the club into the Premier League within three years. Mandaric claims to have pumped £11m into City in his first 12 months as owner. This has enabled numerous players to be brought in, including DJ Campbell (£2.3m), Steve Howard (£1.5m), Stephen Clemence (£750,000) and Matt Oakley (£500,000). Match receipts for last season were £5.3m, up from £4.8m in 2005/06, when the club made a £1.7m profit. Income from sponsorship, executive suites and advertising increased to £3.1m from £2.7m. However, income from retailing and conference and banqueting was slightly down at £3.18m. Staff wages fell by just under £1m to £10.7m, but made up 72.8 per cent of turnover, compared to 57.2 per cent the previous year. Aldridge would not say how much this season's loss would be. City's biggest loss was £6.2m, in the 1998/99 season when they were listed on the stock market. In a statement issued with the accounts, Mandaric said: "I have undertaken a full strategic review of all aspects of the club, including its finances and operations, with a view to continually improving the way the club is run at all levels. "I believe working together as a team, including the players, management, staff and supporters, we can reinvigorate the club and restore it to the Premier League where it belongs."
davieG Posted 2 April 2008 Author Posted 2 April 2008 I see the Merc still can't get the Dudley fee correct. OS
Manwell Pablo Posted 2 April 2008 Posted 2 April 2008 Couldn't care less what we lose the Serb will cover it. Rightly so it's his fault we've lost so much, a sacking here, Iranian wonder kid there, Cheif Non-executive Scout Directors of bullshit hired and fired within a week.
Babylon Posted 2 April 2008 Posted 2 April 2008 Couldn't care less what we lose the Serb will cover it. With what? ... that's the big question. His own money or against the clubs assets, a question the mercury or Radio Leicester never seem interested in asking.
Dr The Singh Posted 2 April 2008 Posted 2 April 2008 With what? ... that's the big question. His own money or against the clubs assets, a question the mercury or Radio Leicester never seem interested in asking. Yeah, exectly the types of questions we need answering!! I think Mandaric has been doing alot of Re-financing, if we get promoted then were all winners but if we don't and he decides to 'pack up', we will be even more in the shits!!!!!!
hairy Posted 2 April 2008 Posted 2 April 2008 With what? ... that's the big question. His own money or against the clubs assets, a question the mercury or Radio Leicester never seem interested in asking. You got it in a nutshell Babs. That is the question. Look at Cardiff. We dont want to end up like that. The figure looks similar to the one he bought it for which may mean we are worth jack shit and its time for MM to think again.
renards Posted 2 April 2008 Posted 2 April 2008 With what? ... that's the big question. His own money or against the clubs assets, a question the mercury or Radio Leicester never seem interested in asking. Spot on There are still numptys out there who believed he paid 25M for the club. And gifted LCFC 11M
Manwell Pablo Posted 2 April 2008 Posted 2 April 2008 Couldn't care less what we lose the Serb will cover it. Rightly so it's his fault we've lost so much, a sacking here, Iranian wonder kid there, Cheif Non-executive Scout Directors of bullshit hired and fired within a week. Dunno. Hopefully his own money as this figures going to be horrific.
Daggers Posted 2 April 2008 Posted 2 April 2008 Mandaric claims to have pumped £11m into City in his first 12 months as owner. This has enabled numerous players to be brought in, including DJ Campbell (£2.3m), Steve Howard (£1.5m), Stephen Clemence (£750,000) and Matt Oakley (£500,000). Match receipts for last season were £5.3m, up from £4.8m in 2005/06, when the club made a £1.7m profit. While he continues to trot out lies like the figures above I fail to be able to trust a single thing that comes out of his mouth. Mandaric is a mendacious, inept fool. I see no reason why I should pay for his mistakes.
Zingari Posted 2 April 2008 Posted 2 April 2008 While he continues to trot out lies like the figures above I fail to be able to trust a single thing that comes out of his mouth.Mandaric is a mendacious, inept fool. I see no reason why I should pay for his mistakes. he may be many things , but certainly not a fool ,
Dr The Singh Posted 2 April 2008 Posted 2 April 2008 he may be many things , but certainly not a fool , I have to agree, from a Mandaric perspective, he may have landed himself a bargain deal?????
Zingari Posted 2 April 2008 Posted 2 April 2008 I have to agree, from a Mandaric perspective, he may have landed himself a bargain deal????? i'm sure in his lifetime he has made many deals, some good, some not so good, but overall he has amassed a fortune from humble beginnings and even if ( and that's by no means certain) , his acquisition of leicester city counts as a mistake, then he still cannot be described as a fool
Joe. Posted 2 April 2008 Posted 2 April 2008 ARGHH. DJ. CAMPBELL. WAS. NOT. £2.3. MILLION. POUNDS. **** off Mercury.
Bellend Sebastian Posted 2 April 2008 Posted 2 April 2008 I don't care how much they lose, I'm still not buying a shirt
Babylon Posted 2 April 2008 Posted 2 April 2008 Dunno. Hopefully his own money as this figures going to be horrific. If he paid it with his own money surely the losses would then not be on the books. Either loans need repaying to a bank, secured against our assets... or he has loaned the club money, repayable if we ever get up.
Zingari Posted 2 April 2008 Posted 2 April 2008 I don't care how much they lose, I'm still not buying a shirt sit next to jobber
Manwell Pablo Posted 2 April 2008 Posted 2 April 2008 If he paid it with his own money surely the losses would then not be on the books. Either loans need repaying to a bank, secured against our assets... or he has loaned the club money, repayable if we ever get up. Nah if he's paid them he'll put them through the books and use the announcement of our losses as a PR exercise, e.g. City make 17 million pound loss blah blah blah but don't worry Uncle Milan has covered it aren't I brilliant. We'll see anyway.
Guest shearfox Posted 2 April 2008 Posted 2 April 2008 The question you have got to ask is, has mandaric ever made a club go bust? the simple answer to that is no he left Portsmouth in great shape. I believe he knows exactly what he is doing here and will not leave us in a bad state when its time for him to move on. Its obvious the club is going to make a loss with all the players brought in recently so this news comes as no surprise what so ever and does not concern me in the slightest.
AmericanScott Posted 2 April 2008 Posted 2 April 2008 Mr. Mandaric made computer parts back in the 70's. Remember the whole corruption thing in November? They took some PC's away. It's all tying together now! He's actually Filbert Fox
davieG Posted 2 April 2008 Author Posted 2 April 2008 The question you have got to ask is, has mandaric ever made a club go bust?the simple answer to that is no he left Portsmouth in great shape. I believe he knows exactly what he is doing here and will not leave us in a bad state when its time for him to move on. Its obvious the club is going to make a loss with all the players brought in recently so this news comes as no surprise what so ever and does not concern me in the slightest. Well I don't mean to be morbid but what happens if he dies on us and these are loans and they aren't covered, I think you will find your interest in the future well-being of LCFC might increase a little. Make no bones about it we are spending more than we are earning and that money has to come from somewhere and one thing MM isn't is philanthropic he's hard nosed businessman looking to make a nice fat profit, which is all well good for us if things go his way if not well.....................
Dr The Singh Posted 2 April 2008 Posted 2 April 2008 Well I don't mean to be morbid but what happens if he dies on us and these are loans and they aren't covered, I think you will find your interest in the future well-being of LCFC might increase a little. I think majority will still like to believe in the magic that is Mandaric, aslong as the perception is that we will get promoted within 3 years or so, most people will be quite content with what Mandaric is doing!!! But it's a valid point, we need to ask the question... are we not protected if Mandaric jumps ship!!!
Manwell Pablo Posted 2 April 2008 Posted 2 April 2008 The question you have got to ask is, has mandaric ever made a club go bust?the simple answer to that is no he left Portsmouth in great shape. I believe he knows exactly what he is doing here and will not leave us in a bad state when its time for him to move on. Its obvious the club is going to make a loss with all the players brought in recently so this news comes as no surprise what so ever and does not concern me in the slightest. Well, actually it's yes, sort of sorry to be a kill joy.
Tommy G Posted 2 April 2008 Posted 2 April 2008 The firm I work for did some consultancy work for Leicester City to advise Tim Davies on the MM takeover. I'd imagine MM has only actually initially invested 500K despite the other figures been banded about. He has took on the debt of the stadium and borrowed the money to invest this season from a well known bank. Since then MM has obviously invested more but i wouldn't be deeply concerned about the 5 mill looses
Manwell Pablo Posted 2 April 2008 Posted 2 April 2008 The firm I work for did some consultancy work for Leicester City to advise Tim Davies on the MM takeover.The club had losses of £6m then in 6 months which is worse. MM has only actually initially invested 500K despite the other figures been banded about. He has took on the debt of the stadium and borrowed the money to invest this season from a well known bank. Since then MM has obviously invested more but i wouldn't be deeply concerned about the 5 mill looses No one would be concerned if thats what we were losing. That was last years loss! It's going to be much more this year.
Tommy G Posted 2 April 2008 Posted 2 April 2008 No one would be concerned if thats what we were losing. That was last years loss! It's going to be much more this year. If anyone knows someone who works for *** then they should be able to tell you a bit about Leicesters Current financial position.
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