wurmer

You are spot on with the EFL rulebook formula, but you’re it's not as simple: i.e. allowance vs actual cash-in-the-bank/cashflow. Yes, that is exactly how the SCMP limit is calculated. But having a high spending limit doesn't matter if our bank accounts are empty. Here is the brutal reality of how those three pillars actually look for us right now: 1. 75% of Turnover (The Parachute Trap) Because we get a Year 2 Parachute Payment, our "turnover" on paper looks okay. But we’ve already spent it. We took out massive commercial loans (like the ones from Macquarie Bank) to survive the Championship, and those loans are secured against our future parachute payments. So yes, the EFL might say "your turnover gives you a £30m wage allowance," but the actual cash from that parachute payment goes straight to the bank to service our debt, not to paying League One wages. You can’t pay a striker with an SCMP allowance; you need cash. 2. ‘Allowable’ Equity Injection You’re assuming Top can and will just pump in "whatever equity" to boost the budget. That ignores what’s happening in the real world. King Power’s duty-free empire has been battered post-pandemic, and they’ve been going through a massive restructure in Thailand. The days of Top writing £50m-£100m blank cheques to bail us out are most likely over. Even if he wanted to, the EFL recently tightened the rules (2024) on how much owner equity can actually be counted to stop financial doping. 3. Player Trading Income (The Fire Sale) You are right that selling players boosts our allowance. But to get that "player sale profit," we have to absolutely gut the squad. We will have to fire-sale Hermansen, Fatawu, Ndidi, and anyone else with a pulse just to legally balance the books. TLDR: The SCMP formula doesn't save us. It just outlines the exact mathematical parameters of the fire sale we are about to endure. The EFL gives us a credit limit, but Macquarie Bank has already taken the credit card.

There is no chance we will meet that.

We’ve already borrowed against the parachute payment.

Plenty there, clapping away like the brainless sealions they are.

Agreed. we are well and truly fecked. on so many levels.

But we will be over 100% so it is academic - we will need to get rid of the lot of them.

You clearly haven’t seen my posts.

This is a total waste of time - let's see which league we are in before talking about the future??

So given where we are, the state of the clubs finances including the huge debt and how leveraged we are, the state of the world thanks to the Orange Bafoon in Washington, the likelihood that we are down, the state of King Power and the issues they have had/are going to have, the absolute turnips in charge of the club on a sporting and corporate level, it’s looking very very grim. The Brutal Truth There is a lot of confusion about what happens to the club financially if we suffer back-to-back relegations. Here is the reality of our situation, stripped of all the accounting jargon: 1. We owe more than we own. Yes, we have a £130m training ground and a £40m+ stadium. But our total debt is estimated to be over £200 million. If you subtract what we owe from what we own, the club is essentially in negative equity. 2. We owe banks, not King Power. Top isn't the one demanding this money. King Power actually wiped out the massive loans we owed them by turning them into shares. Our current debt problem is because we’ve had to take out massive, high-interest loans from real banks (like Macquarie) just to survive the Championship. Banks don't forgive debt; they demand cash. 3. League One revenue is basically zero. In the Premier League, we made £100m+ from TV. In the Championship, it's a fraction of that. In League One, total TV and league money drops to under £2 million. We absolutely cannot pay a £200m+ bank debt and a massive wage bill on £2m a year. 4. King Power can't really afford to save us anymore. Because of the pandemic, changes in tourism, current world situation, King Power’s own duty-free business in Thailand has taken a massive hit. The days of Top writing £100 million blank cheques to bail out the club's mistakes are over. What is one likely path? If we go down, administration is actually quite unlikely because it would destroy the club's assets and King Power's legacy (plus it brings a massive points deduction). Instead, another option is: • The Summer Fire Sale: The club will sell absolutely anyone with a heartbeat and a transfer value for pennies just to slash the wage bill and keep the banks off our backs. • The £1 Sale: King Power will likely have to accept they’ve lost their infrastructure investment. They will quietly sell the club for a nominal fee (like £1) to new owners (likely an American investment group). The new owners get the stadium and Seagrave for "free," but they have to take on the massive £200m debt and the long-term rebuild. TLDR: If we drop to League One, expect a total squad fire sale followed by King Power selling the club for £1 to whoever is willing to take on the debt. The 2016 era is officially over. I’m staggered that the happy clapper idiots still think that it is ok/will be ok because we will spend millions in a league one. Absolute lunancy!

He'll only do it if we go into admin. Finances are an absolute basketcase - I wouldn't touch us with a bargepole.

Harborough Town - you know it makes sense....

Even if we had got the 6 points back, we'd still only be 3 points above the drop zone. It's that bad. If I were King Power I'd just let us go into admin - the chances of them getting any of their money back vs the money they are going to have to pump into the club just to keep us afloat when we go down. They can't sell any assets as they've secured loans against them and there's no guarantees that we will get promoted next season. Looking purely from a commercial perspective, it's not worth it.

Trump is an absolute deranged cvnt.

Because they are as thick as mince

An A10 has gone down too and there's video of one of the Apaches trailing smoke that rescued the first crewman.

'Orange Marmalade' apparently allowed to use the name of the fruit before it rather than having to say 'Citrus Marmalade'. Inside without being inside, great eh!

Bit like everything to be honest.

I find it interesting that some keep saying that KPI won’t let the club go into admin and will continue to bankroll us. Given the current state of their business and the fact that they aren’t run by a member of the family any more - I’m not so sure that they’ll have the funds or desire to do that.

Club won’t exist if we go into admin. Will need to start again.

This is where I’m at. He’ll also lose control of the club more importantly.

Never mind re-arranging the deckchairs on the titanic, this is plumping up and changing the colour of the cusions on those deckchairs. Mind bogglingly staggering.

That's it. I'm done.

I geniunely don't think they have one. They'll just take anything and shrug it off. Probably even admin, it will be a "we've been there before, it's normal for us"..... It's utterly bizarre.

Want us to go down now, that will force the idiot happy clappers to wake up to the fact that these charlatans in charge are making mugs of them. Go down, deal with the consequences of that but at least have a change of getting our club back.

I'd take Epstein, Saville or Andrew (the artist formerly known as Prince) over this lot.