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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  

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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. 

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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 lol

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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 by Cardiff_Fox
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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. 

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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!). 

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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.

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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.

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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.

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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.

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