Stadium Expansion

[reynard]

1 hour ago, davieG said:

Maybe a bit of openness about the financial situation would hold back some of the expectation.

I guess getting into Europe would boost the income though and would pay for any recruitment.

Agreed but only the Champions League generates real meaningful income and that looks unlikely and even more remote if we can't invest in the playing squad.

 

I don't see how the financial structure works in the short term if, as it says, we have agreed that all our income from the Premier League from this season and next season goes to the bank to pay the loan.

Surely means we have to sell players in the short term?

 

[jonthefox]

Maybe we can see why Puel was brought in now. His willingness to develop the youth (ie, not sign anyone) must have been a key factor in him getting the job. Plus it means he isn’t going anywhere. Time to back him, whatever your stance.

[Spudulike]

Do we really want a picture of a fat bloke next to a shit badge on this forum ??

 

Mods, can it be removed please. I'm finding it offensive.

[Mehrez]

The Mahrez deal looks interesting Man City have been instructed to make two payments to Macquarie of £18m each at then end of this season and next season so £36m I wonder if it was half up front and half over two seasons but that would suggest he was £72m rather than £60

[Kopfkino]

4 minutes ago, Mehrez said:

The Mahrez deal looks interesting Man City have been instructed to make two payments to Macquarie of £18m each at then end of this season and next season so £36m I wonder if it was half up front and half over two seasons but that would suggest he was £72m rather than £60

 

More like 3x18 and a few mil in performance add-ons

[Mehrez]

10 minutes ago, Kopfkino said:

 

More like 3x18 and a few mil in performance add-ons

He’d have to play a bit more if were going to get those!

[KFS]

I’m ok with this. The reason we couldn’t continue at the top is because our infrastructure was still Championship level in 2016. Finishing 7th and making stadium and training ground investments would be a very good achievement for the next couple of years. I wouldn’t expect more than that. 

[StriderHiryu]

That discovery about the loan is very interesting! It makes the Puel appointment make so much more sense now. Bottom line is the club wanted a safe pair of hands that could develop players whilst the club makes big investments in the club infrastructure. When he was appointed it was an underwhelming choice because he had “only” finished 8th and got a cup final. Compared to Pelegrini or other more exotic choices he was not exactly a statement of intent. But now I can see why he impressed the owners so much. They most likely saw him as the right person at the right time. 

 

Taking out the loan is a worry because the last time we did that we ended up in huge trouble. But these days our squad is much better and worth more money in the worst case scenario. I also personally don’t think it needs huge investment... a better backup striker to rotate with Vardy is probably the one essential and a true Mahrez replacement would be nice but we are in a good position regardless. 

 

I’m really looking forward to when the stadium improvements and new training centre are completed, I think that will likely mark the start of another exciting era for us. By that time we should have a team where our young players are starting to reach their peak and will have experience playing with each other. And we’ll have the infrastructure in place to push on!

[CosbehFox]

45 minutes ago, reynard said:

Agreed but only the Champions League generates real meaningful income and that looks unlikely and even more remote if we can't invest in the playing squad.

 

I don't see how the financial structure works in the short term if, as it says, we have agreed that all our income from the Premier League from this season and next season goes to the bank to pay the loan.

Surely means we have to sell players in the short term?

 

The money from the loan won’t solely be on the stadium/training ground - it’s to boost the existing sums of cash in the club already. To give an idea - construction companies likely any business are paid every 28 days and we need the liquidity in our cash flow to make sure we pay that. Our cash flow has downpoints when prize money and TV money isn’t paid. 

 

It’s a sign that King Power want to reduce their bankrolling of the club and ensure it stands on it own two feet. The stadium extension sees a new line of revenue too - the arena, the hotel and the expanded corporate facilities. 

 

The club will have projected the next five years on the expected outcomes - a good business would do the same if the proverbial hit the fan too. 

 

Personally i I have always felt Maguire will leave at the end of this season too hence the signing of multiple centre backs. That’s another likely £50million incoming. 

 

Remember we could have took out the loan with no collateral of TV money/transfer money. 

Edited 6 January 2019 by Cardiff_Fox

[WarehamFox]

Silly Question but if all income goes to the bank for a year or so, then where does the money for players wages come from?

Quote

 

 

[Deeg67]

1 hour ago, jonthefox said:

Maybe we can see why Puel was brought in now. His willingness to develop the youth (ie, not sign anyone) must have been a key factor in him getting the job. Plus it means he isn’t going anywhere. Time to back him, whatever your stance.

Yeah, with another manager we might have signed players like Pereira and Maddison who could really have helped the team.

[st albans fox]

This is all very interesting

 

comments regarding the potential finance issues re the death of khan vichai are not relevant as the Marrez deal was way before this 

 

I always thought that king power would be financing the infrastructure projects in conjunction with club profits ( we made huge profits last two years combined) as this is outside FFP. Using the club finances must make the infrastructure within ffp? 

 

actually, forget the interesting bit.........I’m a bit concerned unless doing it this way is better re tax arrangements for the club  

[Babylon]

2 minutes ago, st albans fox said:

This is all very interesting

 

comments regarding the potential finance issues re the death of khan vichai are not relevant as the Marrez deal was way before this 

 

I always thought that king power would be financing the infrastructure projects in conjunction with club profits ( we made huge profits last two years combined) as this is outside FFP. Using the club finances must make the infrastructure within ffp? 

 

actually, forget the interesting bit.........I’m a bit concerned unless doing it this way is better re tax arrangements for the club  

We didn't upload the loan stuff about Mahrez until after the crash, so there could potentially be some truth in it. But I doubt any of us are experts in Thai inheritance processes for billionaires to know for sure.

[KingsX]

Appears we are moving from an era when the club was Vichai's personal project (and investment) to one where it is simply the highest profile business under the King Power umbrella.

 

I have every confidence in Top, but unlike his father, he may be calling all the shots at the club, but not the overall family business.  Capital will be allocated according to different priorities.

 

I've noticed that two things that determine the success of a club are not only the amount of investment available, but also the owner's personal skin in the game.  (us or Man City on one side, Arsenal or Man U on the other.)

 

I'm not overly worried--this is likely just a big enough loan to cover construction costs: very reasonable business.  And the Srivadhannaprabhas have built a huge reservoir of trust.

 

Just don't expect big outlays on players, unless there is an offsetting reduction elsewhere in the squad.

[Mehrez]

4 minutes ago, Babylon said:

We didn't upload the loan stuff about Mahrez until after the crash, so there could potentially be some truth in it. But I doubt any of us are experts in Thai inheritance processes for billionaires to know for sure.

Looks to me like the facility was set up at the end of October which is a fortnight after planning was approved on the training ground, we probably won’t know the reasons behind it until the club releases its financial statement which I think comes shortly after the end of the season 

[Kopfkino]

13 minutes ago, Babylon said:

We didn't upload the loan stuff about Mahrez until after the crash, so there could potentially be some truth in it. But I doubt any of us are experts in Thai inheritance processes for billionaires to know for sure.

 

The agreement was signed 26th, the day before the crash. It's not like these things are arranged particularly quickly.

[Babylon]

3 minutes ago, Kopfkino said:

 

The agreement was signed 26th, the day before the crash. It's not like these things are arranged particularly quickly.

Fair enough, I was looking at the dates on companies house than those on the doc!

[Spudulike]

Not sure why they need a loan for stadium expansion as planning permission is yet to be applied for. Could be some way off, potentially, before any construction contracts need to be signed off.

[Nicolo Barella]

6 hours ago, jonthefox said:

Factoring happens in every business. Nothing to worry about.

You sound like you know what you're talking about. If you've the time, mind explaining briefly what factoring means in this scenario to a noob?

[jonthefox]

50 minutes ago, Nicolo Barella said:

You sound like you know what you're talking about. If you've the time, mind explaining briefly what factoring means in this scenario to a noob?

Just borrowing against future earnings. Like a payday loan but on a grander scale.

[Nicolo Barella]

5 minutes ago, jonthefox said:

Just borrowing against future earnings. Like a payday loan but on a grander scale.

Sounds right to me. Thank you 

[Sol thewall Bamba]

If this is blocking new signings on financial grounds it needs cancelling immediately. 

[urban.spaceman]

20 hours ago, dayday said:

It might be rubbish, as it was in the paper this morning.

 

Leicester have taken out a new pay day loan to kick start the next phase of the clubs development.

 

The foxes have done some financial house keeping since owner Vichai died.

 

And now the club is pressing ahead with plans drawn up while he was alive to build a £100 million training ground and boost stadium capacity.

 

They have put up the Tv money they are due to receive between May and August this year as security. The loan is the second deal Leicester have made with Aussie bank Macquarie Group

 

Can anybody clarify what all this means?

Which paper?

[sylofox]

Anyone know how much we have borrowed? 

[dayday]

1 hour ago, urban.spaceman said:

Which paper?

Sunday Sun