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

[ClaphamFox]

2 minutes ago, Lako42 said:

Unless he's selling up...

Possibly, but more likely just clearing the debt in order to take on more debt to fund the stadium expansion.

[Dames]

Just now, ClaphamFox said:

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. 

This is what I was going to say and with the Premier League moving into a position of market dominance across the board its a shrewd move. 

4 minutes ago, st albans fox said:

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

This is where he does deserve some credit. 

[StanSP]

4 minutes ago, ClaphamFox said:

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. 

This isn't enough of a negative attitude, sorry. 

[yorkie1999]

1 hour ago, cityfanlee23 said:

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???? 

Absolutley disgusting. Wonder how many had the banners out when we won the FA cup under Tops stewardship.

[Tuna]

Seems like good news, club is still in safe hands - thanks Top.

 

Does send alarm bells ringing that we've gotten into this situation - what is it, wage bill, transfer expenditure? Questions need asking.

 

Bertrand and Vestergaard taking millions out of the club every season is a problem, it is nice to see our latest recruits are much more shrewd signings.

[Dames]

Just now, StanSP said:

This isn't enough of a negative attitude, sorry. 

But its nothing really to be overly positive about either. If anything recognise its a shrewd move that might benefit both parties but the reality is that we are in a relegation scrap and we have the next 3 or so years worth of Premier League TV money tied up in loans to people that actually want paying back. 

[PhillippaT]

2 hours ago, eblair said:

strange new betting firms registered in saudi arabia (would you believe it) paying millions in advertising revenues 

 

FFP a farce

Are there any rich phantom day-trading companies in Thailand needing a place to advertise? 😋

[StanSP]

Just now, Dames said:

But its nothing really to be overly positive about either. If anything recognise its a shrewd move that might benefit both parties but the reality is that we are in a relegation scrap and we have the next 3 or so years worth of Premier League TV money tied up in loans to people that actually want paying back. 

I recognise it's a positive that just under £200m debt has been written off .

 

 

[tylesta]

1 hour ago, cityfanlee23 said:

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???? 

Avoiding supporting the team!!! Some fan you are 

[Babylon]

3 minutes ago, Dames said:

But its nothing really to be overly positive about either. If anything recognise its a shrewd move that might benefit both parties but the reality is that we are in a relegation scrap and we have the next 3 or so years worth of Premier League TV money tied up in loans to people that actually want paying back. 

We don’t, loan facilities are not necessarily loans but more an overdraft facility. We might not have used any of it and it’s certainly not £300m+

[Lako42]

11 minutes ago, yorkie1999 said:

Absolutley disgusting. Wonder how many had the banners out when we won the FA cup under Tops stewardship.

Were there banners specifically about Top? I must have missed it...

 

There was a banner asking where the leaders of the club were as we slipped to yet another defeat and inched closer to the relegation zone. 

 

A paperwork exercise that simply changes how the billionaire gets his money back later on doesn't mean questions shouldn't be asked about key decisions we are making. 

 

 

Edited 1 February 2023 by Lako42

[Dames]

1 minute ago, Babylon said:

We don’t, loan facilities are not necessarily loans but more an overdraft facility. We might not have used any of it and it’s certainly not £300m+

So why are we taking our latest loan/overdraft out against TV money from 3 years in the future? I could be wrong but if we hadn't used any of it previously then why are we taking it out against money so far in the future when things are less certain? Would indicate that the next 2 seasons worth of money have already been 'spent'. 

[Gamble92]

Let's keep saying we won an FA cup though, all the way down to the Championship. 

 

Let's dine out on the Premier League win and FA cup win just like the tricky trees do with their achievements in the dinosaur age. 

 

Become irrelevant for 30 years and sing champions of England you'll never sing that at loads of teams in the championship who've won it numerous times. 

 

[Guest Mee-9]

Makes the club look in a better situation to prospective buyers.

 

Out of interest, what sort of business can just afford to write off almost £200m worth of debt? Aren’t King Power in a mess still due to the pandemic? 
 

Suspicious. 

[Dames]

Just now, Mee-9 said:

Makes the club look in a better situation to prospective buyers.

 

Out of interest, what sort of business can just afford to write off almost £200m worth of debt? Aren’t King Power in a mess still due to the pandemic? 
 

Suspicious. 

Its not written off its been converted to equity. Chances are the rumours of us selling up have come about because we've been valued recently for this purpose. 

 

There is a risk if we lose value but essentially something KP paid 40m for is probably worth 500m now meaning there is lots of wiggle room for things such as debt conversion. 

 

[yorkie1999]

3 minutes ago, Lako42 said:

Were there banners specifically about Top? I must have missed it...

 

There was a banner asking where the leaders of the club were as we slipped to yet another defeat and inched closer to the relegation zone. 

 

A paperwork exercise that simply changes how the billionaire gets his money back later on doesn't mean questions shouldn't be asked about key decisions we are making. 

 

 

Why would anyone want to question what decisions the club are making? I'm pretty sure that the group of people running the club know what they're doing, FA cup, Premier league, etc kind of backs that up., We're going through a bit of a rough patch with a lot of injuries to key players over the last 2,3 or 4 seasons, fans need to realise that's what happens in sport.   

[Fox in the North]

Just a reminder on debt. That amazingly well run club Brighton and Hove Albion also have massive debts that Tony Bloom also writes off on an occasional basis. 

[FoxInTheBirstallBox]

1 hour ago, cityfanlee23 said:

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???? 

Jesus wept. Why are you even here? 

[Lako42]

1 minute ago, yorkie1999 said:

Why would anyone want to question what decisions the club are making? 

 

Not much point carrying on with you is there 

[turlo]

14 minutes ago, Tuna said:

Seems like good news, club is still in safe hands - thanks Top.

 

Does send alarm bells ringing that we've gotten into this situation - what is it, wage bill, transfer expenditure? Questions need asking.

 

Bertrand and Vestergaard taking millions out of the club every season is a problem, it is nice to see our latest recruits are much more shrewd signings.

Our wages are still an issue but started to improve, although we'll still need to shift the likes of Vestergaard, Praet Bertrand etc in the summer. While players contracts are expiring this summer those players will need replacing with players on lower wages to really bring the wage bill down - hopefully the lessons of overpaying for under utlitised players has been learned but time will tell 

The loans provided by king power that are being written off were for the training ground (100m loan) and 2 x 40m "working capital loans" during COVID to aid cash flow (pay the bills, help fund transfers etc) due to lost revenue during those seasons 

[s11nny]

13 minutes ago, Gamble92 said:

Let's keep saying we won an FA cup though, all the way down to the Championship. 

 

Let's dine out on the Premier League win and FA cup win just like the tricky trees do with their achievements in the dinosaur age. 

 

Become irrelevant for 30 years and sing champions of England you'll never sing that at loads of teams in the championship who've won it numerous times. 

 

It’s you made us sing that btw 

[SemperEadem]

Just now, s11nny said:

It’s you made us sing that btw 

He is referencing the support which has on numerous occasions looked like a bunch of thick tarts by actually singing tunes along those lines to clubs with far bigger trophy cabinets than our own.

[Babylon]

4 minutes ago, Dames said:

So why are we taking our latest loan/overdraft out against TV money from 3 years in the future? I could be wrong but if we hadn't used any of it previously then why are we taking it out against money so far in the future when things are less certain? Would indicate that the next 2 seasons worth of money have already been 'spent'. 

It doesn't indicate that, we wouldn't be a going concern if we'd spent that money. Don't look at it like we owe them three years worth of money, just that whatever we borrow is secured AGAINST those payment for three years. Could be £60m, which they can get from premier league money if we don't satisfy our payment terms. Think of a car loan secured against your house, debt is minuscule compared to the actual asset. 

 

We've satisfied and restructured these debts plenty of times. Whether that's KP taking them on long term and then ultimately converting to equity, or paying it back and getting a new facility. 

 

The reality is, we never fully know what's going on as the accounts are so far behind. But I wouldn't get too wound up about it. 

[UHDrive]

How does interest rates affect ffp? Anyone please? 

[shiv]

50 minutes ago, Dames said:

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. 

The two aren’t related. They did it in 2013 when we were in the Championship. It’s genuinely just a debt write off - which we should be grateful for tbh. Prior to Newcastle’s takeover Ashley took out money in the form of loan repayments.