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

[Nolucklcfc]

Just now, Chrysalis said:

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

Oh that’s a shame! 

[foxfanazer]

Does this mean we can sack Rodgers now? 

[cityfanlee23]

7 minutes ago, jamesmilner said:

 '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 !!!

No im not local to Leicester and im avoiding supporting the team on the pitch like the plague with the performances we are putting in, there were banners about top???? 

[AKCJ]

42 minutes ago, turlo said:

The speculation that the owners didn't care about the club, had never put a penny into the club (300 mill of owner loans to the club now written off) and were going to call the loans owed to KP in,  which would bankrupt the club turned out to be rather inaccurate

I meant more what are the implications in terms of FFP? Are we now allowed to spend proper money again?

[splinterdream]

So do we think fofana money has covered most of incoming with Faes, Tete, Christianson and Soutar? If it has, not bad business although we don't know Tete permanent fee as yet do we?

[Tommy G]

Decent 

[Lcfc098]

14 minutes ago, jamesmilner said:

 '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 !!!

The banners that said to the board to sort it out? They were fairly called out for the position we were in and are still in tbh. If we get relegated we're still in a lot of trouble

[desertfox2]

50 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. 
 

 

So, I just checked on the statement of capital submitted which is a total of GBP 307m. If they were actively looking for your hypothetical 150m to be invested I assume they would issue another 150m shares in addition to the 307m so a total of 457m and you would own 32.8%. That's a very rough calculation as it assumes no ROI on their deployed capital.

[st albans fox]

37 minutes 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. 

I think people are thinking about the possibility of outside investment being a potentially positive thing for the club.  
 

10 minutes ago, Chrysalis said:

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

True but debt needs servicing with annual interest charges. Whilst rates are low, it’s feasible to argue that there needn’t be any sizeable charge in the accounts for that but now they are on the up, that’s a tough argument on an ffp basis. 

[st albans fox]

2 minutes ago, desertfox2 said:

So, I just checked on the statement of capital submitted which is a total of GBP 307m. If they were actively looking for your hypothetical 150m to be invested I assume they would issue another 150m shares in addition to the 307m so a total of 457m and you would own 32.8%. That's a very rough calculation as it assumes no ROI on their deployed capital.

And would my shares be equal to theirs?  or would they need to be a new class of share?  and being a minority shareholder, would I have any say in them repaying half of their debt from the club over the next three years?   I’d be taking a huge risk that my 150m could be worth a lot less than if I invested it into a debt free business ??

[lcfcbluearmy]

1 hour ago, StriderHiryu said:

A miscellaneous Saudi sponsor will back them for 200m sponsorship in the summer, just you watch. 

 

Man City have a betting sponsor for which there is no known address and seemingly don't even operate as a business. It's of course, swept under the carpet.

https://offthepitch.com/a/exclusive-another-manchester-city-sponsor-seemingly-no-staff-no-active-products-and-being-run-out

 

 

 

I think there are 10 clubs in the primer league all with different betting sponsors that all leaf back to that same place

[Lako42]

1 hour ago, baldeagle said:

Our owners haven’t lost interest and are still the best 

The biggest decision isn't financial and should have been made ages ago but other than that then yes. 

[Dames]

Not really going to get overly excited about this. To me it feels like a bit of a PR stunt because we are in trouble. 

 

If he paid Maquire off I would be absolutely buzzing but as it see this its a bit of a ponzi scheme. We essentially owe Top money and instead of owing him money we've printed off more shares and issued them to Top instead. Either way Top will get his money when it comes to selling the club but its a nice headline grabber in the meantime and something that will make us more attractive for a sale.

 

 

[Simoken]

Nah!!!! you all wrong. 99.8.5.4.0% think this was a move from Top to secure Rodgers for the long run and keep his club ambitions alive. Vital bit of business this. about time the overheads did something right for once.

Edited 1 February 2023 by Simoken

[SemperEadem]

Is it as simple as - Richman bails out club's spiralling debts - is that the definition of a top owner today?

[shiv]

6 minutes ago, Dames said:

Not really going to get overly excited about this. To me it feels like a bit of a PR stunt because we are in trouble. 

 

If he paid Maquire off I would be absolutely buzzing but as it see this its a bit of a ponzi scheme. We essentially owe Top money and instead of owing him money we've printed off more shares and issued them to Top instead. Either way Top will get his money when it comes to selling the club but its a nice headline grabber in the meantime and something that will make us more attractive for a sale.

 

 

What nonsense  

 

More shares has nothing to do with how much Top could hypothetically sell the club for.

 

He could issue another 1 billion shares, doesn’t mean he will get £1b for the club.

[CosbehFox]

4 minutes ago, SemperEadem said:

Is it as simple as - Richman bails out club's spiralling debts - is that the definition of a top owner today?

 

Troubles me how football fans priorities have shifted 

We had more criticism to the board because of a lack of transfer spending rather than issues directly facing fans on a day to day basis. 

[desertfox2]

36 minutes ago, st albans fox said:

And would my shares be equal to theirs?  or would they need to be a new class of share?  and being a minority shareholder, would I have any say in them repaying half of their debt from the club over the next three years?   I’d be taking a huge risk that my 150m could be worth a lot less than if I invested it into a debt free business ??

It would be equal but they would have more voting rights as they own more of the shares. Usually you would put together a separate partnership agreement where you could say what the money couldn't be used for to alleviate the concerns that you had like being used for them to recover debt. A partnership agreement would cover all of that and then both parties would only go ahead if they accepted the terms naturally.  The way that they have done it is incredible really. We should be really grateful as most clubs are up to their eyeballs in debt. Aside from the Macquaire debt we are in a very healthy position thanks to them. They have assumed all the risk.  

Edited 1 February 2023 by desertfox2
shares

[Dames]

13 minutes ago, shiv said:

What nonsense  

 

More shares has nothing to do with how much Top could hypothetically sell the club for.

 

He could issue another 1 billion shares, doesn’t mean he will get £1b for the club.

I imagine the club has increased in value since they last converted debt to shares and that's why they've been able to do it. 

[dannythefox]

And some fans wanted the owners out. 😂😂

[Dames]

17 minutes ago, SemperEadem said:

Is it as simple as - Richman bails out club's spiralling debts - is that the definition of a top owner today?

They aren't spiralling debts though. They only would have been if he decided to demand repayments.

 

Instead he's converted it to equity based on the current valuation of the club, its a nice PR stunt but somewhere down the line Top will get his money and thats fair enough. 

[SemperEadem]

Just now, Dames said:

They aren't spiralling debts though. They only would have been if he decided to demand repayments.

 

Instead he's converted it to equity based on the current valuation of the club, its a nice PR stunt but somewhere down the line Top will get his money and thats fair enough. 

So not the big altruistic move many are making out perhaps? 

Maybe you can help me understand why the debts to King Power have been tackled but not the debt to LCFC, is that a worry?

[st albans fox]

1 minute ago, Dames said:

They aren't spiralling debts though. They only would have been if he decided to demand repayments.

 

Instead he's converted it to equity based on the current valuation of the club, its a nice PR stunt but somewhere down the line Top will get his money and thats fair enough. 

He would get more if he left the loans in place and took 7%+ interest per annum …..

[Lako42]

1 minute ago, st albans fox said:

He would get more if he left the loans in place and took 7%+ interest per annum …..

Unless he's selling up...

[ClaphamFox]

Just now, SemperEadem said:

So not the big altruistic move many are making out perhaps? 

Maybe you can help me understand why the debts to King Power have been tackled but not the debt to LCFC, is that a worry?

It is an altruistic move. The value of the shares can go up or down. A loan with interest is a guaranteed payment, which KP and Top have relinquished. The only way this financially benefits KP and Top is if the value of the shares soars and they end up selling the club at a higher value.