Our system detected that your browser is blocking advertisements on our site. Please help support FoxesTalk by disabling any kind of ad blocker while browsing this site. Thank you.
Jump to content
 Share
Sly

Companies House - Registration of charge

By Sly, in Leicester City Forum

Recommended Posts

sw_fox

sw_fox

Posted
Posted
5 hours ago, sacreblueits442 said:

...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.

Exactly, and interest payments will help reduce our net profit and therefore our tax burden, which presumably there will be quite a hefty one due to selling assets.


In essence, I’m not worried at all by this development. Without being a Man City or Newcastle of this world, and particularly after relegation, this is a relatively sensible way to

run the business.

 

Obviously better to be debt free as a club. But from the business side debt isn’t necessarily something to be afraid of if it helps cash flow and allows us to make the investments we need at the time we need to.

  • Like 2
Link to comment
Share on other sites
Chrysalis

Chrysalis

Posted
Posted (edited)
On 10/09/2023 at 04:29, sw_fox said:

Exactly, and interest payments will help reduce our net profit and therefore our tax burden, which presumably there will be quite a hefty one due to selling assets.


In essence, I’m not worried at all by this development. Without being a Man City or Newcastle of this world, and particularly after relegation, this is a relatively sensible way to

run the business.

 

Obviously better to be debt free as a club. But from the business side debt isn’t necessarily something to be afraid of if it helps cash flow and allows us to make the investments we need at the time we need to.

Is there a reason KP cant provide the cashflow via an interest free loan or equity?

 

My thoughts are this was expected, as a club we have got used to paying the day to day bills via pay day loans, and we had a big problem following relegation of how we would pay the wage bill, the only answer was from player sales, so yes this is essentially covering our wages for the upcoming season.

Edited by Chrysalis
Link to comment
Share on other sites
moore_94

moore_94

Posted
Posted
56 minutes ago, Chrysalis said:

Is there a reason KP cant provide the cashflow via an interest free loan or equity?

 

My thoughts are this was expected, as a club we have got used to paying the day to day bills via pay day loans, and we had a big problem following relegation of how we would pay the wage bill, the only answer was from player sales, so yes this is essentially covering our wages for the upcoming season.

King Power have provided a loan facility for us to use if we want to

Link to comment
Share on other sites
Danizen

Danizen

Posted
Posted
1 hour ago, Chrysalis said:

Is there a reason KP cant provide the cashflow via an interest free loan or equity?

 

My thoughts are this was expected, as a club we have got used to paying the day to day bills via pay day loans, and we had a big problem following relegation of how we would pay the wage bill, the only answer was from player sales, so yes this is essentially covering our wages for the upcoming season.

I'm guessing any King Power loan would be looked at pretty closely by the league with regards to FFP. Even if it was all above board, it could look bad to an outsider. 

 

We've got previous for this and it probably hasn't been forgotten. 

 

Using a third party keeps it all clean and the right side of the FFP rules. 

Link to comment
Share on other sites
Tommy G

Tommy G

Posted
Posted

Lots of unneccessary stress around registration of charges. Do people think we operate as a Footbal Club like the average consumer, get paid at the end of the month and pay all our bills on the 1st of the following. Debt and interest is the devil on a personal level but completely different when running a business. I can't be bother to write war and peace but how the club manages their cashflow is all pretty normal. 

  • Like 3
Link to comment
Share on other sites
Ric Flair

Ric Flair

Posted
Posted
On 09/09/2023 at 12:17, st albans fox said:

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 

The deal for Harry Winks was also very very beneficial to us....

Link to comment
Share on other sites
jayfox26

jayfox26

Posted
Posted
1 hour ago, Danizen said:

I'm guessing any King Power loan would be looked at pretty closely by the league with regards to FFP. Even if it was all above board, it could look bad to an outsider. 

 

We've got previous for this and it probably hasn't been forgotten. 

 

Using a third party keeps it all clean and the right side of the FFP rules. 

It does seem pretty contradictive that ffp is supposed to be in place to ensure the financial stability of football clubs, yet it would rather clubs take loans with huge interest payments from and outside loan company than to allow teams to take loans from their owners interest free. So long as the loans are repaid and the club follows other ffp regulations, I don't see why an interest free loan from the owner will be an issue. 

Link to comment
Share on other sites
sacreblueits442

sacreblueits442

Posted
Posted
19 minutes ago, jayfox26 said:

It does seem pretty contradictive that ffp is supposed to be in place to ensure the financial stability of football clubs, yet it would rather clubs take loans with huge interest payments from and outside loan company than to allow teams to take loans from their owners interest free. So long as the loans are repaid and the club follows other ffp regulations, I don't see why an interest free loan from the owner will be an issue. 

...would there be a limit on the loan,  and what would be the minimum repayment length of time!!!

  In theory Newcastle could come up with an interest free loan from their owners for say £750m, where there is a 10 year period for it to be repaid by. How do you believe the existing top teams would respond to that scenario?

Link to comment
Share on other sites
Tommy G

Tommy G

Posted
Posted
31 minutes ago, jayfox26 said:

It does seem pretty contradictive that ffp is supposed to be in place to ensure the financial stability of football clubs, yet it would rather clubs take loans with huge interest payments from and outside loan company than to allow teams to take loans from their owners interest free. So long as the loans are repaid and the club follows other ffp regulations, I don't see why an interest free loan from the owner will be an issue. 

Are you really questioning why clubs don't have interest free loans from their billionaire owners??

Link to comment
Share on other sites
jayfox26

jayfox26

Posted
Posted (edited)
43 minutes ago, sacreblueits442 said:

...would there be a limit on the loan,  and what would be the minimum repayment length of time!!!

  In theory Newcastle could come up with an interest free loan from their owners for say £750m, where there is a 10 year period for it to be repaid by. How do you believe the existing top teams would respond to that scenario?

Yes I suppose the big clubs would manipulate the system like the always do. I think clubs would have to prove that they are capable of paying the loans back and prove where the income is coming from to pay the loans back. It would mean that teams like us who do try to follow the rules don't get stumped with huge interest on loans. 

Edited by jayfox26
  • Like 1
Link to comment
Share on other sites
Chrysalis

Chrysalis

Posted
Posted
On 11/09/2023 at 10:41, Danizen said:

I'm guessing any King Power loan would be looked at pretty closely by the league with regards to FFP. Even if it was all above board, it could look bad to an outsider. 

 

We've got previous for this and it probably hasn't been forgotten. 

 

Using a third party keeps it all clean and the right side of the FFP rules. 

You mean they would have an issue if e.g. we didnt have to pay it back?  So a cash injection disguised as a loan.

 

That would be totally counter productive if you think FFP is supposed to maintain financial stability at clubs.

 

As long as the income and spending is within regulations as I understand it there shouldnt be an issue.

 

I think when we got promoted they were questioning some of what we claimed as income.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
×
 Share
Go to topic listing

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...