Pliskin

I see. They are yes, but, at the moment the income is definitely surpassed by the outgoings, is we’re losing £40m a year just on daily running, then there’s bound to be much greater losses. And it’s not guarantee that we love everyone on we need too!

This is it. The club have gambled on instant returns to the EPL, and this isn’t happening and they will have to do something drastic to settle these debts.

In terms of value to wage ratio, so if for example Daka is sold for less than his remaining wage? It’s easy to say we can easily he rid of them, but let’s not forget they will still be on higher wages here, and it’s fairly clear from this lot that they’re happy to behalf arsed and collect a wage. Maybe it was, however the numbers are much greater…. It’s going to be far harder to get our books in order this time, The books may have looked worse in 2008, but in reality it isn’t, for example we lose £40m as a standard every year. The figures far surpass 2008, or may appear to be similar but it isn’t.

Obviously this is a very black and white response, it doesn’t really cover any other issues that made appear out of the blue. Like, if we’ve breached FFP again when the accounts are reviewed in April. My question is though, the transfer fees are going to be minuscule compared to the wages……. So we’re going to be making some colossal further losses surely?

Our biggest issue is the costs won’t fall as quickly as the revenue would. As you can see the league 1 revenue is horrifically below our current output. The problem is, we will be going down with the biggest wage bill league one has ever seen, how are we going to shift these players on without making further monumental losses? Theres no way we’re getting £15m for Fatawu, between £5-10 if we are lucky, one because he’s been poor this season, and two no one will be paying asking prices for players that have just nosedived two divisions. I’m not entirely sure how the transfer fee marries up, to the wages? So for example if we have to sell Daka for £5m how does that relate to his wages? I also can’t see there being a reduction in wages, doesn’t this have to be written into the contracts? Relegation to league 1? Either way, some drastic measures will be needed, king power aren’t investing directly int the club anymore so we will have no choice but to start selling off the stadium, and training facilities…..

I’ve asked co pilot to draw together what it can from the internet to try and explain the potential risks of relegation. If Leicester City were relegated to League One (the third tier), the financial consequences would be extremely serious. The club isn’t on the brink of disappearing tomorrow, but it would force a major financial reset and could become dangerous if they stayed down for more than a season. Here’s the situation broken down. 1. The biggest issue: Leicester’s costs were built for the Premier League Leicester spent years operating like a top-half Premier League club: Wage bill previously around £200m+ during their Premier League years. They also built a £100m training complex and invested heavily in facilities and contracts. When they were relegated, costs didn’t fall as fast as revenue, leaving them with a wage bill that was over 100% of revenue, which is extremely unhealthy financially. That mismatch is the core reason they’ve had financial rule breaches and points deductions. 2. Revenue drop from Premier League → Championship → League One The money difference between the leagues is enormous. Premier League Typical revenue: £120m – £200m per year Championship (with parachute payments) Still relatively high: £40m – £80m depending on parachutes and sponsorship. Clubs relegated from the Premier League get parachute payments for up to three seasons: Year 1: ~50% of Premier League TV share Year 2: ~45% Year 3: ~20% This is what currently keeps Leicester afloat. League One If Leicester dropped again: Typical revenue: £8m – £15m total Broadcast income alone can drop from £50m+ to under £2m. That’s a 90%+ drop compared with Premier League money. 3. They would also lose the parachute advantage Parachute payments are meant to help clubs adjust after Premier League relegation. But if Leicester fall into League One: Parachutes don’t increase They still run down quickly And the club must operate on League One income So if they stayed down more than 1–2 years, the financial cushion disappears. 4. Their current financial breaches already show strain Leicester have already: Been deducted 6 points for breaking financial rules. Lost over £200m in a three-year period. Exceeded permitted losses by £20.8m. That means the club is already overspending relative to its income, even before any drop to League One. 5. What would actually happen if they went down? It wouldn’t mean instant bankruptcy, but several things would happen fast: Massive squad sale High earners would have to go immediately. Typical League One wage budget: £6m–£12m per year Leicester’s current structure is far above that. Cost cutting everywhere Likely actions: Sell top players Slash wage bill Reduce transfer spending Possible staff layoffs Depend more on academy players Risk of long-term decline The biggest danger isn’t one season in League One — it’s getting stuck there. Examples in England show this clearly: Sunderland A.F.C. fell from the Premier League to League One in two years. Portsmouth F.C. collapsed financially and went into administration. Large clubs can spiral quickly when revenue collapses. 6. Are Leicester close to going bust? Right now: Short term: Probably safe because of parachute payments and owner backing. Medium term (if League One + debts): Serious risk if losses continue. Their survival could depend heavily on owner funding from the King Power group, which has already injected large sums into the club historically. ✅ Simple summary If Leicester drop to League One: Revenue could fall £50m–£100m+ Wage bill would need massive cuts Squad would likely be sold off Club would need a full financial rebuild They wouldn’t instantly go bust, but it would be the most dangerous financial situation in the club’s modern history

No club has ever gone into league one with our overheads….. the financial drop from the championship to league one is colossal, and we’re still operating as a premier league club. The amount of money we will be losing without the ability to replace it, plain and simply isn’t survivable. So, in short, no team has ever gone into league 1 in as much of a financial mess as we are. And worse still, our board room won’t even be considering it so no preparations for league 1 will happen until we’re there……

Has it got a herb garden?

Well, my house for sale, yet I’ve got people knocking on my door every five minutes offering to buy it! Bonkers!

We’ve managed to fritter away £600m in ten years…. Pissing into the wind.

As far as I’m aware the parachute payments are up on the summer, so that will only go on the losses the club will endure. And they won’t really help us at all. We don’t have valuable players at all….. they’re all on colossal wages and their values diminished significantly, our most valuable player is probably Fatawu, and his worth will be about £5-10m now. This idea we’re going to offload a load of players and recoup the losses is nonsense, we won’t…. Wages won’t be cut, because the contracts won’t account for relegation. Just over a month so ago Top was talking about play offs…. So you think they’ve got relegation clauses to league 1 written into their contracts? This is not an overreaction at all, no club has ever been in league one with our financial output, much lesser clubs have nearly gone bust and they haven’t had anywhere near the outgoings we have…. We lose £40m every year as standard….. £40m….. that’s colossal……. No club in modern football has collapsed like this, it’s unprecedented.

Because the overheads are so colossal, league 1 doesn’t allow for such intense losses. We lose £40m a year just on running costs….out basic outgoings are greater then probably every league one clubs value. The parachute payments will simply repay loans and make up for the loss in TV revenue. Our wage bill even with those leaving, will be the largest league 1 has ever seen. We will likely automatically breach the league 1 financial rules and we’re expecting to shift on a bunch of players who we have failed to do so for the last five years? The club will be loosing far too much money, more money than league one has ever seen. We will be losing far more than we will bring in, at some point our debts will surpass the value of the club. Administration is inevitable for me, we will operating as a premier league club financially on the third tier of English football. It will likely only end one way.

It would have….. it was discussed last week that the protest would take place before and after the game. So you’re wrong.

The best we can hope for is loans. They were all given contracts with no incentives written into them…. We will be making massive losses on them, and then there’s them accepting much lower wages……… I can tell you now Vesty will happily sit on the bench claiming his wedge. You’re naive if you think it will be that easy to shift these players on. And we ain’t receiving good fees for anyone.

Yet again another posts that completely misses the point. A few points 1- “were a medium club” not an excuse £600m has passed through his club in ten years, that’s elite level money, and we’ve thrown it away. 2 - KP benefitted from a system set up by Nigel Pearson, Brendan Rodgers re kindled that to some degrees but ever since then that model has eroded. 3 - there’s not chance KP fix this, they’ve managed to piss away £600m recklessly and have put us in genuine danger of folding. 4 - this is absolutely nothing like our previous history, we’ve had enough none come through this club to ensure long term stability, and haven’t been able to yet clubs like Bournemouth, Brentford, Brighton and Fulham have…… Everyone is entitled to their own opinion, but views like this are contributing to the clubs downfall. If we get relegated, we won’t survive, the club will fold. So, if you love Leicester, you’ll fight for its existence, not sit there hoping it will somehow get better.

This is nonsense. Protests can be very impactful, but you need numbers, and it’s evident that the majority of the fanbase don’t give a **** if the club folds.

They might want to go, but what if they get no offers! We can’t just release a bunch of players under contract.

I just can’t see anything other than a complete financial collapse. The sheer outgoings, TV deals falling off a cliff and there’s the more strict league one rules, meaning we will be financial turmoil and we will have one hand tied behind our backs anyway. Any saleable asset he drastically reduced, and we will still have issues getting the high earners off the wage bill. It’s when all of these horrific decisions finally come to bite us on the arse.

I thought I would start a thread to bring all of the various conversations about the implications of relegation to league 1. This is to be less jovial and more concentrating on the facts, and if we can work out just how dangerously close we are to situations such as administration.

We won’t exist by then! So no need!

He’s been poor for most of his appearances. I don’t think he’s actually any good at all.

Gone by Christmas I reckon.

The scary thing is, this isn’t even rock bottom yet. Things are going to get much, much worse.

How many final nails can be hammered into a coffin? Feels like this is the beginning of the end, we’re on life support.