Companies House - Registration of charge

[LinekersLugs]

I beginning to think we will be forsale soon !!!!! 
 

Why would a supposedly cash rich family borrow money and pay away interest ?? 
 

things aren’t all that they seem with King Power I fear Covid 19 is destroying their business  

[Spudulike]

9 hours ago, Mehrez said:

KP did a 6 year £91m loan for the training ground, it’s in the latest accounts 

Must be getting towards two years into that already. 

[Lako42]

1 hour ago, LinekersLugs said:

I beginning to think we will be forsale soon !!!!! 
 

Why would a supposedly cash rich family borrow money and pay away interest ?? 
 

things aren’t all that they seem with King Power I fear Covid 19 is destroying their business  

Interest rates are at an all time low. If the business can borrow at a lower rate than what they get on their assets then it's a no brainer. 

 

Not that it's that simple. 

 

 

I do find it concerning that we are continuously borrowing against future TV money. It is okay as a one off but to do this consecutively is a risky business indeed. 

[Bayfox]

22 hours ago, chapero82 said:

Haven’t the government also said they are wavering planning permissions for now also?

On house extension not sure it covers 10-12k on a football stadium

[chapero82]

20 minutes ago, Bayfox said:

On house extension not sure it covers 10-12k on a football stadium

I wasn’t sure what it was on as I heard it on the radio news while driving  

[CosbehFox]

7 hours ago, LinekersLugs said:

I beginning to think we will be forsale soon !!!!! 
 

Why would a supposedly cash rich family borrow money and pay away interest ?? 
 

things aren’t all that they seem with King Power I fear Covid 19 is destroying their business  

Cash flow - TV deal and transfers are staged payments. KP other than that training ground deal mentioned here haven’t put their cold hard cash into the club for a long time 
 

Clubs want the cash now. I read every club outside of top six has entered similar agreements across the year. 
 

King Power’s wealth will now largely be tied up in property and other schemes. You don’t be as naive to have that money and have it solely reliant on a single business industry 

Edited 13 August 2020 by Cardiff_Fox

[Tommy G]

This sort of thing is very commonplace - in any business. No need for everyone to get their knickers in a twist about it!

 

Gone are the days of any business funding growth or investment our of their cash reserves. Even cash rich businesses will have some form of gearing to fund themselves in the short mid and long term. 

[The_77]

6 hours ago, Lako42 said:

Interest rates are at an all time low. If the business can borrow at a lower rate than what they get on their assets then it's a no brainer. 

 

Not that it's that simple. 

 

 

I do find it concerning that we are continuously borrowing against future TV money. It is okay as a one off but to do this consecutively is a risky business indeed. 

We’re about to complete a huge state-of-the-art training campus have plans to expand the stadium. Why defer cash payments when we access the money now and see ourselves through this global downturn? 
 

Seems to make sense to me (as long as we don’t get relegated!). 

[SilverFox]

Companies do this all the time.

[UHDrive]

Well at least its a better way of going bust and writing off the debt...

[sacreblueits442]

23 hours ago, Paninistickers said:

I find the tactic quite interesting.

 

Basically it's factoring. An overdraft in reverse. Plonking a huge chunk of cash in your account and running it down.... rather than running up an overdraft and waiting for the PL money to arrive months later to pay it all off.

 

Slightly curious as to why we are so cash thirsty though. 

 

And slightly curious as to why the training ground outlay seemingly hasn't been mortgaged over the next 40 years. I don't see the rush to pay for it up front. 

..the company wants us to be self sufficient!!!

Wouldn't a 40 year mortgage be more expensive and interest rate at present, is negligible.

 I totally agree with what the club is doing and the season ending 21/22 will leave us with the finance to compete in the transfer market, as monies will not be levied against final position revenue.

[Out Foxed]

On 12/08/2020 at 19:30, SemperEadem said:

With a sketchy rep.

like most banks

[Chrysalis]

On 12/08/2020 at 19:28, Babylon said:

Who claimed Kingpower lent the money, they haven't put their own cash in for a long time. Technically anything the club makes is there's, so technically they have. But outside source money they haven't. 

 

This lot are known as the vampire bank... bloody suckers!

Yeah thats what I always thought, but there is a few posters on here who said they lent the money for the training ground.

[Chrysalis]

On 12/08/2020 at 22:40, Paninistickers said:

I find the tactic quite interesting.

 

Basically it's factoring. An overdraft in reverse. Plonking a huge chunk of cash in your account and running it down.... rather than running up an overdraft and waiting for the PL money to arrive months later to pay it all off.

 

Slightly curious as to why we are so cash thirsty though. 

 

And slightly curious as to why the training ground outlay seemingly hasn't been mortgaged over the next 40 years. I don't see the rush to pay for it up front. 

Wage bill is very high for our level of turnover, thats a big part of it, compare our wage bill to saints, burnley, palace etc.  We not paying out that much less than Arsenal and Spurs who are both much bigger clubs.

[Bob Farley]

On 12/08/2020 at 23:23, Paninistickers said:

KP lent LCFC the £91m? 

 

....That's interesting. I wonder where the heck KP have £91m of cash reserves from.to dish out? 

 

 

 

 

From all the divorced 50 year old men going to Thailand hoping to get lucky with a ladyboy.

[Sly]

Another registration of charge added yesterday.
 

September 2023

[moore_94]

3 hours ago, Sly said:

Another registration of charge added yesterday.
 

September 2023

Looks like it is the same as we did with the Fofana deal with Chelsea

 

Just getting instalments due from Spurs for Maddison in now rather than July 2024 and July 2025

Edited 9 September 2023 by moore_94

[st albans fox]

Worth watching to see if we do the same with the Barnes deal (or maybe newcastle paid it all up front to get a better deal?) 

[Dames]

That amount of money over 2 years is going to take some hefty interest. If we don’t get out of this league the interest on these loans we have out alone will cripple us even if the other amounts are covered.

[AjcW]

3 hours ago, st albans fox said:

Worth watching to see if we do the same with the Barnes deal (or maybe newcastle paid it all up front to get a better deal?) 

They did that with Gordon so I think it might be similar. 

[Paninistickers]

1 hour ago, Dames said:

That amount of money over 2 years is going to take some hefty interest. If we don’t get out of this league the interest on these loans we have out alone will cripple us even if the other amounts are covered.

It's not normally a case of, we are due say 35m over three equal installments but instead, we simply get 30m today. The provider then pockets spurs' three payments instead

[st albans fox]

It seems that spurs owe us 13.33m twice 

would make sense for the fee to actually have been £40m  (plus some add ons which aren’t included in the charge ) 

 

it also looks like the Norwich sell on clause was around 15% 

[st albans fox]

4 minutes ago, Paninistickers said:

It's not normally a case of, we are due say 35m over three equal installments but instead, we simply get 30m today. The provider then pockets spurs' three payments instead

They’re lending us 13m a year early and 13m two years early 

I’d expect to pay at least 800k year 1 and 1.6m for the second tranche in interest if we don’t settle early 

 

I assume we offered spurs a £1m discount to pay up front. Reflects that they aren’t cash rich either 

Edited 9 September 2023 by st albans fox

[sw_fox]

Anyone stopped to think this is probably just a finance facility that we can just draw down if we have cash flow issues? I’m a director of a company and this is exactly what we do for invoices from our customers to help with cash flow. Most of the time we don’t need it but it’s helpful to have if needed - it may be the same for the club. All well and good having another club owing you x amount but if you need to pay salaries or big ticket items like transfers then it’s good to know you can get your hands on the cash quickly…

[sacreblueits442]

9 minutes ago, sw_fox said:

Anyone stopped to think this is probably just a finance facility that we can just draw down if we have cash flow issues? I’m a director of a company and this is exactly what we do for invoices from our customers to help with cash flow. Most of the time we don’t need it but it’s helpful to have if needed - it may be the same for the club. All well and good having another club owing you x amount but if you need to pay salaries or big ticket items like transfers then it’s good to know you can get your hands on the cash quickly…

...it is a form of invoice financing!!!

Once you get into the process it is not easy to get back on track to do business the old way.. There is usually a major commitment made where a sizeable lone is initially taken out and levied against company assets (such as Debtors) in our case final position payment. There is an ongoing cost for the facility, but it allows you to have available cash to meet your company's needs.