Club Finances - new charge registered against club (Macquaire Bank Limited)

[AjcW]

38 minutes ago, moore_94 said:

https://www.lcfc.com/news/3043434
 

LCFC Chairman Provides Future Security With Debt-To-Equity Conversion

 

Leicester City Chairman Aiyawatt Srivaddhanaprabha has relieved the Club of its outstanding debts to its parent company, King Power International.

 

Over £194M in loans and related interest has been capitalised into equity issued to King Power International Co Limited (KPI), which is wholly owned by the Srivaddhanaprabha family. These loans have been provided by KPI to the Club over the last four years to fund the construction of the Club’s world-class new training ground at Seagrave and to continue to support the Club’s investments into its squad and Women’s football during the COVID-19 pandemic. Their conversion into equity serves to strengthen the Club’s balance sheet, reduce its interest costs, and provide further evidence of King Power International’s commitment to supporting the Club’s long-term sustainability.

 

It is the second time such a process has been undertaken since the family took ownership of Leicester City in 2010, having completed a £103M debt-to-equity transfer in 2013. In both cases it has ensured that all existing shareholder investment in the Club will not be carried forward as debt.

 

Leicester City Chairman Aiyawatt Srivaddhanaprabha said: “Maintaining long-term stability is vital for sustainable growth and a fundamental principle that has always guided our investments in the Club’s future. We want to make sure we continue on that path from the strongest, most secure financial footing.

 

“I believe with all my heart in Leicester City and what the Club can achieve for our fans, our people and our communities – in Leicester, Thailand and around the world. The faith they continue to place in us to run their Club responsibly with ambition and integrity guides our decision making and remains vital to us building on one of the most successful eras in the Club’s history.”

Hope a few on here are feeling rather shitty with themselves after some of the comments made about our owners in recent weeks! 

[Fox 4 Life]

39 minutes ago, Chocolate Teapot said:

Newcastle are going to be an interesting one to watch as can't imagine their revenue is going to grow that much.

Need them to finish outside of the top 4 

Edited 1 February 2023 by Fox 4 Life

[Jackubu]

2 minutes ago, AjcW said:

Hope a few on here are feeling rather shitty with themselves after some of the comments made about our owners in recent weeks! 

It's what fans were asking for - a show of commitment. 

 

I don't feel shitty, I feel justified in asking to hear more. Credit to Top 

[les-tah]

3 minutes ago, AjcW said:

Hope a few on here are feeling rather shitty with themselves after some of the comments made about our owners in recent weeks! 

No one like a ‘told you so’

 

i havent seen anyone show any major disrespect really so not sure why you expect people to feel shitty🤣

 

We are well justified expecting more investment as we are bordering on relegation and its still a reality because the lack of investment in the summer.

[Babylon]

22 minutes ago, UHDrive said:

Ahhh OK. So it's positives and negative. Appreciate that thanks.

Wouldn't say negatives, it's all positive. Merely saying there is always a way of asset stripping and cashing in if they wanted to ha, not that I'd be worried about them doing so. 

[Stevosevic]

A statement says as much as the investment imo. 

[Babylon]

Just now, les-tah said:

No one like a ‘told you so’

 

i havent seen anyone show any major disrespect really so not sure why you expect people to feel shitty🤣

 

We are well justified expecting more investment as we are bordering on relegation and its still a reality because the lack of investment in the summer.

Were you reading the forum whilst squinting? 

[Babylon]

4 minutes ago, Jackubu said:

It's what fans were asking for - a show of commitment. 

He'd already provided that in the loans and the statements he'd given. But as always, it's never enough. 

 

Even with this people are trying to find negatives, in that it means they are going to sell. 

[Alf Bentley]

34 minutes ago, Babylon said:

The money had already been spent, so it's merely moving it around on paper I suppose. As it's no longer a loan they can't charge interest on it, can't demand payment... but it's their club at the end of the day and they have other ways of getting cash out. 

 

I'd rather it not be on the books as a loan than on it, but I'm not sure it makes a terrible amount of difference if they REALLY wanted to claw the cash back. I'd like to think it just shows their commitment to the club once again and the financial support they have provided. 

 

We just don't know the ins and outs, for all we know it could be a final bail out from the family, and after that no more (seeing as Vichais wife now seems to be in charge at KP and not Top).

 

Where did you hear this, out of curiosity?

 

Not that it bothers me - so long as the most capable person is in charge.

 

Edit: Just realised you presumably mean she's in charge at King Power, not at KP Stadium (LCFC). Still interesting news, if true.

 

Edited 1 February 2023 by Alf Bentley

[les-tah]

2 minutes ago, Babylon said:

Were you reading the forum whilst squinting? 

I mean maybe 

 

i seen alot saying please leave our club but most of them were grateful for everything but please leave so we can buy players.

[Daggers]

2 minutes ago, Babylon said:

they are going to sell. 

Et tu, Babs?

 

For shame. 

[Jackubu]

1 minute ago, Babylon said:

He'd already provided that in the loans and the statements he'd given. But as always, it's never enough. 

 

Even with this people are trying to find negatives, in that it means they are going to sell. 

Having loans and interest lodged against the club naturally creates an aura of uncertainty regardless of whether you have Top running the club or Steve Dale.  We've had a year of hearing we're skint, can't spend money or whatever else these journos spout - so the value in the statement is ironically invaluable.

 

 You're allowed to criticise as long as you credit when it's due. 

 

[grobyfox1990]

2 hours ago, drew said:

Incredible if Top and his family have wiped off the debt in that manner.

 

Maybe we don’t know as much as we think we do.

That's obvious, we know nothing other than pure speculation, would not take anything anyone says on here seriously

[coolcol]

5 minutes ago, les-tah said:

No one like a ‘told you so’

 

i havent seen anyone show any major disrespect really so not sure why you expect people to feel shitty🤣

 

We are well justified expecting more investment as we are bordering on relegation and its still a reality because the lack of investment in the summer.

Personally, I love a "told you so" especially when it's done in a really condescending manner 😉

[Lcfc098]

15 minutes ago, AjcW said:

Hope a few on here are feeling rather shitty with themselves after some of the comments made about our owners in recent weeks! 

The fans criticisms could not be what may have sparked this and the signings we've made? No one dislikes the owners, just want the best for the club

[fox in the sox]

52 minutes ago, Chocolate Teapot said:

Newcastle are going to be an interesting one to watch as can't imagine their revenue is going to grow that much.

If they become a major force in this country and in Europe wouldn’t this bring benefits such as better sponsorship deals/more merchandising?

[Babylon]

Just now, Alf Bentley said:

 

Where did you hear this, out of curiosity?

 

Not that it bothers me - so long as the most capable person is in charge.

Top used to be Chairman on the KP website, that's now his mother and he's the CEO and CCO. Sombat Dechapanichkul is the vice chairman and COO and the daughter Voramas is also vice chairman. 

 

Now, it can be debated until kingdom come whether that has much impact. But she's been visually elevated to the top of the pile in terms of pictures on the website,  and whilst CEO is generally in charge of day to day, they answer to the board, of which she's the head... and he'd have to seek board approval for big decisions. 

[cityfanlee23]

So we’ve been done a solid here. I know none of us would expect Top to shaft us over, but in the event the club is sold, it just means that we won’t have a former owner who can start demanding loan repayments and interest since it’s effectively been turned into shares which would be sold to a new owner in future. So worst case if top is looking to sell, we don’t have huge interest payments hanging over us. The club would obviously be more expensive to buy though. 
 

I think on the balance it’s definitely a better position to be in, if Top became desperate to offload us, he would be forced to sell at a lower price and wouldn’t then be able to recover through loan repayments so from a personal perspective it reads to me like Top is putting club above himself. 

[Chrysalis]

40 minutes ago, st albans fox said:

Hypothetically- I want to invest £150m into LCFC 

if the club owes KP £190m then what happens with my money when it’s invested ?  Theoretically it could be used to pay off the loan so I would be adjusting my shareholding in the business to take account of that. But it makes things v complicated unless my investment was part of an agreed full take over at a set price. 

 

by removing the KP loans, any investor is buying into the club at the same level as the owners. It just makes things much cleaner. 
 

 

If I was been asked to invest as a minority shareholder my first requirement would be for owner to write off loans, so what you say makes sense.

[lgfualol]

Top obviously read the comments on FT calling him out and took action 

[ian__marshall]

I suspect with the recent cash injections right across the league it's raised the value of the club by default which has helped make this possible.

 

I heard on Talksport this morning (before anyone mentions I know its a poor source) that Chelsea spent more money in January than all of the clubs in the Bundesliga, La Liga, Ligue 1, and Serie A combined which is absolutely crazy. Apparently Forest did the same in the summer! It just demonstrates the value owners are currently seeing in PL clubs (rightly or wrongly). I'd imagine that so long as the club remains a PL club and even with the limited investment we've seen this season the club will be worth significantly more at the end of this season than it was at the start. Football really has gone mad, but even at these silly prices the potential for growth of the PL in international markets is still sizeable. 

 

Edited 1 February 2023 by ian__marshall

[jamesmilner]

5 minutes ago, cityfanlee23 said:

So we’ve been done a solid here. I know none of us would expect Top to shaft us over, but in the event the club is sold, it just means that we won’t have a former owner who can start demanding loan repayments and interest since it’s effectively been turned into shares which would be sold to a new owner in future. So worst case if top is looking to sell, we don’t have huge interest payments hanging over us. The club would obviously be more expensive to buy though. 
 

I think on the balance it’s definitely a better position to be in, if Top became desperate to offload us, he would be forced to sell at a lower price and wouldn’t then be able to recover through loan repayments so from a personal perspective it reads to me like Top is putting club above himself. 

 'I know none of us would expect Top to shaft us over'   

Didn't you see the banners at the games then ? Oh my days !!!

[Leicesterpool]

No doubt in years to come when Newcastle become this huge power house we will see many fans jump on the bandwagon same ones who follow man city. Of course we seen it when we won the league. To some fans it's all about whose winning everything rather than supporting local or localish club.

[Nolucklcfc]

Does this make any difference to FFP and how close we are to breaking it? 

[Chrysalis]

1 minute ago, Nolucklcfc said:

Does this make any difference to FFP and how close we are to breaking it? 

As far as I am aware no, FFP doesnt seem to take into account debt.