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DJ Barry Hammond

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

By DJ Barry Hammond, in Leicester City Forum

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sacreblueits442

sacreblueits442

Posted
Posted
59 minutes ago, Paninistickers said:

Looks that way to me. 

 

So if we went down this season, we'd give our 22/23 parachute money to the bank and the 23/24, 24/25 we'd have to fund ourselves to the bank. And, onbs, have no money to fancae the playing side for those three seasons. 

 

My gut feeling is that it is insanity. Even if we don't go down,  how are we to finance the next three seasons, having having already cashed in our chips?

 

Surely there's a back up plan and/or surely there is financing from another source? (I still maintain this FBS deal stinks)

...we will not be releasing any payment until we have to!!!

The finance I would believe will be available but we will use as and when. So long as we stay in the Premier League it is no problem. 

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turlo

turlo

Posted
Posted
23 minutes ago, sacreblueits442 said:

...we will not be releasing any payment until we have to!!!

The finance I would believe will be available but we will use as and when. So long as we stay in the Premier League it is no problem. 

That's how I read it rather than the club taking out a huge loan now secured by the next 4 seasons TV money (100's of millions). 

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OntarioFox

OntarioFox

Posted
Posted (edited)

Looks like we're going to have to be a little thriftier in coming transfer windows if we're using this to put all our eggs in the basket of expanding the stadium.

The question is - will we find the fabled new winger before it really starts to bite? lol

As for the comments about relegation being a financial disaster for us as a club... yup. Gulp. I never take anything for granted in football, so I bloody well hope our board aren't doing so. I've no immediate fear of it happening to us - yet - but one or two poor seasons with bad recruitment are all it takes to end up down there. :S

We can argue semantics about his more questionable tactics, but keeping Rodgers here is vital if we're gonna ride this out. I trust him to bring through the right academy products to keep our team fresh if we do end up in a transfer squeeze.

Then there's the possibility of the vultures circling for our best players... again, the way to stop that is with continued success on the pitch.

 

Interesting times ahead, if not necessarily good ones from a behind-the-scenes perspective. Seems like our future is reliant on us retaining the current spine we have, and Daka and Iheanacho taking up the mantle when Vardy finishes / regresses.

Edited by OntarioFox
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Ric Flair

Ric Flair

Posted
Posted
10 minutes ago, OntarioFox said:

Looks like we're going to have to be a little thriftier in coming transfer windows if we're using this to put all our eggs in the basket of expanding the stadium.

The question is - will we find the fabled new winger before it really starts to bite? lol

As for the comments about relegation being a financial disaster for us as a club... yup. Gulp. I never take anything for granted in football, so I bloody well hope our board aren't doing so. I've no immediate fear of it happening to us - yet - but one or two poor seasons with bad recruitment are all it takes to end up down there. :S

We can argue semantics about his more questionable tactics, but keeping Rodgers here is vital if we're gonna ride this out. I trust him to bring through the right academy products to keep our team fresh if we do end up in a transfer squeeze.

Then there's the possibility of the vultures circling for our best players... again, the way to stop that is with continued success on the pitch.

 

Interesting times ahead, if not necessarily good ones from a behind-the-scenes perspective. Seems like our future is reliant on us retaining the current spine we have, and Daka and Iheanacho taking up the mantle when Vardy finishes / regresses.

I don't see anything in this that's any different to the previous arrangements, so it's business as usual. The club will have planned this.

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Ric Flair

Ric Flair

Posted
Posted
4 minutes ago, Fox in the North said:

Just updated on companies house from 3 September Ric

I meant is it really anything different to what we've done before with them? We cleared all previous loans with them and now have a new one. We surely all expected this given we have announced significant expansion to our stadium which is going to cost every bit as much as the training ground, if not more.

 

 

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coolhandfox

coolhandfox

Posted
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Posted (edited)

Does the penny every drop with some people, this is they way we work, we have done it for years.

 

What people need to understand is we are ran like a business, yes we have a wealthy owner, but we aren't a rich man's play thing like Chelsea or  Man City.

 

This is planned, not a knee jerk decision.

 

This summer was our biggest net spend since 2016/17, if there was a problem, we would have committed that spend without selling a major asset?

 

Were people expecting KP to pay for the extension to the ground and the surrounding area? Nope they are going to borrow the money!

 

 

 

Edited by coolhandfox
typos
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SemperEadem

SemperEadem

Posted
Posted
2 hours ago, davieG said:

Top wont allow us to go down.

Yeah we are beyond this point now. Two or three seasons ago perhaps but now a bad season that say say us 13th one year would not be allowed to spiral into something worse. Money would be thrown at it plus we are on higher footing which means less likely to fall that far.

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OntarioFox

OntarioFox

Posted
Posted (edited)

I trust they're doing things in the right way, it's not unreasonable to say that these investments are based on an expectation that we're going to remain competitive in the top half of the Prem though? If success dries up on the pitch and we do find ourselves relegated in the next decade these obligations would destroy us.

 

I admire our club's ambition for real, and I trust the owners. It's just hard to shake the grounded mindset when it comes to club finances after those doldrum years, League One and of course the ITV Digital fiasco.

 

As I said, it's fine to make these sorts of business decisions, but football isn't like an average business. You have to back it up on the field. It's corporate gambling, basically, and at the moment we're definitely up during our night at the tables.

 

edit - doesn't mean i'm against the club making these investments fwiw, I know money doesn't grow on trees, it's more just an acknowledgement that there's a significant amount of risk involved with anything like this in a results business like footy. :D

Edited by OntarioFox
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Chocolate Teapot

Chocolate Teapot

Posted
Posted
3 hours ago, coolhandfox said:

Does the penny every drop with some people, this is they way we work, we have done it for years.

 

What people need to understand is we are ran like a business, yes we have a wealthy owner, but we aren't a rich man's play thing like Chelsea or  Man City.

 

This is planned, not a knee jerk decision.

 

This summer was our biggest net spend since 2016/17, if there was a problem, we would have committed that spend without selling a major asset?

 

Were people expecting KP to pay for the extension to the ground and the surrounding area? Nope they are going to borrow the money!

 

 

 

No. Some people have to be miserable ***** and forecast years of hardship.

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Babylon

Babylon

Posted
Posted (edited)
10 hours ago, Paninistickers said:

Looks that way to me. 

 

So if we went down this season, we'd give our 22/23 parachute money to the bank and the 23/24, 24/25 we'd have to fund ourselves to the bank. And, onbs, have no money to fancae the playing side for those three seasons. 

 

My gut feeling is that it is insanity. Even if we don't go down,  how are we to finance the next three seasons, having having already cashed in our chips?

 

Surely there's a back up plan and/or surely there is financing from another source? (I still maintain this FBS deal stinks)

It's a loan facility, meaning the money will be sat in an account to use as and when we want. It doesn't mean we've got hundreds of millions and spent it all instantly. It just flexibility to use money as and when needed. This could, also something far shorter term, with something longer term put in place with Kingpower, which is what the accounts did stipulate we were looking to do a while back. 

Edited by Babylon
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Paninistickers

Paninistickers

Posted
Posted
3 hours ago, coolhandfox said:

Does the penny every drop with some people, this is they way we work, we have done it for years.

 

What people need to understand is we are ran like a business, yes we have a wealthy owner, but we aren't a rich man's play thing like Chelsea or  Man City.

 

This is planned, not a knee jerk decision.

 

This summer was our biggest net spend since 2016/17, if there was a problem, we would have committed that spend without selling a major asset?

 

Were people expecting KP to pay for the extension to the ground and the surrounding area? Nope they are going to borrow the money!

 

 

 

It's not a 'penny drop' thing. I think it's good etiquette to question and examine business decisions. 

 

Fwiw, I find it fascinating. There are clearly money games at play and I can't see through the opaque lens..And I'm suggesting the lens is deliberately opaque. 

 

Big business is often about robbing Peter to pay Paul. Spending money to create value. Leveraging assets. 

 

Based on nothing more than a guess, I reckon a lot of the KP family money has been gained from huge business gambles over time. There's no way Duty free retail accumulates this kind of wealth

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coolhandfox

coolhandfox

Posted
Posted
51 minutes ago, Paninistickers said:

It's not a 'penny drop' thing. I think it's good etiquette to question and examine business decisions. 

I agree but they have been doing this for a while it's nothing new, and most of the PL does it.

51 minutes ago, Paninistickers said:

Fwiw, I find it fascinating. There are clearly money games at play and I can't see through the opaque lens..And I'm suggesting the lens is deliberately opaque. 

Why would they do any different? 

51 minutes ago, Paninistickers said:

 

Big business is often about robbing Peter to pay Paul. Spending money to create value. Leveraging assets. 

That's exactly what they are doing here, using the PL money to underwrite a loan to give us working capital.

 

Borrowing money is pretty cheap at the moment.

51 minutes ago, Paninistickers said:

 

Based on nothing more than a guess, I reckon a lot of the KP family money has been gained from huge business gambles over time. There's no way Duty free retail accumulates this kind of wealth

To be fair it turns overturn €2bn so it's not a bad earner, not sure what the profit margin is.

 

I assue they would have had to take some gambles in the early year's. I doubt they need to do that now, lots of easy ways to make money when  your a billionaire.

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coolhandfox

coolhandfox

Posted
Posted
Just now, Chocolate Teapot said:

I know. Every year some donut makes out like we've not got a pot to piss whilst we buy a new training ground, extend the stadium and spend 60m.

I think we are pretty measured at spending money. 

 

We look for value in the market, we aren't afraid to spend big for the right opportunity, like Fofana 30m or Tielemans 40m.

 

This summer was our biggest net spend in the transfer market since 2016/17.

 

I just get grumpy when people moan we haven't splash 40m on a RM, on top of Daka, Soumare, Vesterguard.

 

 

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