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

[MarriedaLeicesterGirl]

4 hours ago, coolhandfox said:

Yes, its about getting more right then you get wrong, I think we learnt a massive amount from the awful 2016/2017 transfer window. We got burnt badly on buying players in their late 20's for big money

Yeah, in many ways, that season was just a steep learning curve for a club in the Championship three years before: Media attention, league champion/champions league surcharges, and the  fact your star manager was underperforming horribly. What's amazing is how quickly they put the ship to right and implement a long term vision.

[richardsfoxes]

Another one this month.

[Lineker's Left Foot]

13 minutes ago, richardsfoxes said:

Another one this month.

Silly question as I am clueless about finances, but does this mean that there maybe available finances for purchasing players before the window slams shut?

[hejammy]

12 minutes ago, Lineker's Left Foot said:

Silly question as I am clueless about finances, but does this mean that there maybe available finances for purchasing players before the window slams shut?

I guess if the charge (or borrowing) was simply for the purchase of players?

[Winsum]

I think we are borrowing against future income from the Premier League and TV

it would be interesting to know what it is costing the club

if it is anything like debt factoring the. I think it could be pricey

I assume we are using this money to assist in the stadium expansion

[turlo]

39 minutes ago, Winsum said:

I think we are borrowing against future income from the Premier League and TV

it would be interesting to know what it is costing the club

if it is anything like debt factoring the. I think it could be pricey

I assume we are using this money to assist in the stadium expansion

Could be just for day to day operating costs similar to the working capital loan we took out with KPI in previous years.

[Paninistickers]

Hmmmm. I guess we are always locked into this. 

 

Once you take an advance on TV money, you obvs forego what would've been the 'real' payment date, say, 6 months later and at that point need to advance against the next tranche of TV money. Never ending cycle.

 

Fine so long as you retain PL status. 

[Lako42]

We have the largest wage to turnover in the PL don't we, so we will probably rely on loans for a long time. 

 

 

Sailing close to the wind IMO

[sylofox]

1 minute ago, Lako42 said:

We have the largest wage to turnover in the PL don't we, so we will probably rely on loans for a long time. 

 

 

Sailing close to the wind IMO

We need a good champions league season to clear it.

[Lako42]

32 minutes ago, sylofox said:

We need a good champions league season to clear it.

Which isn't coming

[sacreblueits442]

1 hour ago, Paninistickers said:

Hmmmm. I guess we are always locked into this. 

 

Once you take an advance on TV money, you obvs forego what would've been the 'real' payment date, say, 6 months later and at that point need to advance against the next tranche of TV money. Never ending cycle.

 

Fine so long as you retain PL status. 

...you can secure the loan via the Premier League money and draw it down as and when you need it!!!

  Just because you have the available credit, it does not mean you draw it all down at once.

  Any immediate need for money to be paid to construction companies or to be rendered to architects, you then draw the money down to meet the bill.

[turlo]

2 hours ago, sylofox said:

We need a good champions league season to clear it.

Or we flog a high value player + and replace with new recruits on lower value contracts 

[Ric Flair]

4 hours ago, Lako42 said:

We have the largest wage to turnover in the PL don't we, so we will probably rely on loans for a long time. 

 

 

Sailing close to the wind IMO

It was overstated due to the delayed final instalment of TV revenue in the 2019/20 season. We always push things to the maximum which is why our model of buying young players and rewarding them with new contracts as they progress and then tactically selling one high earner and reinvest most seasons is what enables us to do this.

 

We've got a few high earners off our books since our last set of accounts and we've increased our commercial revenue + been in Europe and won the FA Cup + have that final element of the 19/20 TV money so it won't look quite as grim (famous last words)

[sylofox]

4 hours ago, Lako42 said:

Which isn't coming

Who said it was but that's the only way we get out of this cycle of borrowing money  to finance our season.

 

Or we buy no one and hope we are good enough.

[sylofox]

3 hours ago, turlo said:

Or we flog a high value player + and replace with new recruits on lower value contracts 

Care to name that player?

 

Clubs know our finances now and are not guessing. They wont offer the money. But will sit back for a window and gamble on a players price.

 

The silly we will just pay days have gone.

[MalletFox]

33 minutes ago, sylofox said:

Care to name that player?

 

Clubs know our finances now and are not guessing. They wont offer the money. But will sit back for a window and gamble on a players price.

 

The silly we will just pay days have gone.

I will… Tielemans and/or Cags!

[Sly]

This was taken in December. 

[turlo]

1 hour ago, sylofox said:

Care to name that player?

 

Clubs know our finances now and are not guessing. They wont offer the money. But will sit back for a window and gamble on a players price.

 

The silly we will just pay days have gone.

Either Youri or Maddison. If Maddison continues anything close to his current form and stays injury free we'd get 60-70 mill if the right club were in need of a creative midfielder/no 10. . Moving on squad players on higher wages (even if we can't get big fee's for them) and replacing with younger players with potential would also reduce our wage bill  

[Aus Fox]

We’d get big money for Fofana, Maddison, Tielemans, Ndidi, Justin, Barnes and Soyuncu. Obviously some of these would be hard to replace, but others wouldn’t be so hard.

We’d also get decent money for Ward, Iheanacho, Thomas, KDH, Daka.

We have more than enough assets to not have to worry about the immediate future of the club.

I would imagine at the end of this season Tielemans will go, even with a year left on his contract, we should be looking at £50 million +
I wouldn’t be surprised to see Soyuncu leave for decent money too. 

[Mike Oxlong]

Coming soon - Leicester City v Derby County in United Counties League thriller 

[leicesterseddon]

19 hours ago, Winsum said:

I think we are borrowing against future income from the Premier League and TV

it would be interesting to know what it is costing the club

if it is anything like debt factoring the. I think it could be pricey

I assume we are using this money to assist in the stadium expansion

And assume is all we can do, since the club have never officially confirmed how they intend to finance the expansion. 
 

I’d assumed it would be similar to the training ground (that was a 6-year loan from KPI, I believe).

 

But who knows tbh? I know Spurs had loans from commercial banks, so maybe that’s what we’ll have to do as well. 

 

[Sean2000]

9 hours ago, Aus Fox said:

 

I would imagine at the end of this season Tielemans will go, even with a year left on his contract, we should be looking at £50 million +

I don't see us getting £50m for a bloke with 12 months left on his contact - unless there is a crazy bidding war.  More like £25-£30m in that contract situation.

[st albans fox]

9 hours ago, Aus Fox said:

 

I wwould imagine at the end of this season Tielemans will go, even with a year left on his contract, we should be looking at £50 million +
I wouldn’t be surprised to see Soyuncu leave for decent money too. 

I think we’ll struggle to get our money back 

 

cags is also running down his contract -  I would expect to see us turn a profit on him. Maybe £30m which is disappointing given where he was a year ago. 
 

we may well have to sell two assets at the end of the season to allow for a fairly gentle spend - would be v v difficult to sell these two and replace them. It could be that it has to be a 50/60m sale which means a player with several years left. 

 

That’s for the transfer thread though 

[CosbehFox]

It’s no surprise that they need some cash liquidity given the impact that the pandemic is having on their business. 
 

However it asks questions if we are in this never ending cycle of cashing the TV deal, prize money or player transfer how do we step up to keep a level with the likes of Villa et al

Edited 27 January 2022 by Cardiff_Fox

[Paninistickers]

1 hour ago, leicesterseddon said:

And assume is all we can do, since the club have never officially confirmed how they intend to finance the expansion. 
 

I’d assumed it would be similar to the training ground (that was a 6-year loan from KPI, I believe).

 

But who knows tbh? I know Spurs had loans from commercial banks, so maybe that’s what we’ll have to do as well. 

 

Interesting point. How is the stadium expansion, arena, hotel, flats to be paid for? That's to my knowledge never been discussed. 

 

Isn't the stadium actually owned by King Power? And not LCFC? Assuming that's the case, then the expansion is likely to he funded away from the club presumably using a mix of private finance,  loans and commercial property investors (such as pension firms)