Owner funding

[Fox in the North 1,405]

It’s what the top 6 clubs do to top up their income any way possible, it’s needed now more than ever 

[Webbo 16,080]

You can see from that chart, even if we'd made the champions league we'd still probably be 200 million behind Arsenal. No sponsorship deal in the world would make up the difference, especially one that we could get. 

[Desabafar 126]

the owners will have to put money in if they want us to stay competitive. we have an expensive Vardy shape hole soon and we need a striker anyway. also the club wont afford to pay for the training ground and a stadium overhaul as well.

[st albans fox 8,154]

2 minutes ago, Desabafar said:

the owners will have to put money in if they want us to stay competitive. we have an expensive Vardy shape hole soon and we need a striker anyway. also the club wont afford to pay for the training ground and a stadium overhaul as well.

I assume we will sell a couple of assets for decent money 50m+ in one summer to cover the investment required up top ....but can you actually replace JV ??

 

 

[Babylon 27,913]

11 minutes ago, Desabafar said:

the owners will have to put money in if they want us to stay competitive. we have an expensive Vardy shape hole soon and we need a striker anyway. also the club wont afford to pay for the training ground and a stadium overhaul as well.

We’ve got a huge amount coming off the books now and next summer. Silva, Slim and Rachid alone must be £10m per year at least. So that would pay it off over 10 years pretty much.

 

Its not that simple and things will be fluid of course. I’m sure as well that if we desperately needed something they would fund it or at least loan it easy enough.

[Cardiff_Fox 5,689]

Is today a good time to point out that Bangkok is in a state of emergency as the anti government protests against the Thai PM have reached fever pitch? 

[Grey Fox 280]

3 minutes ago, Cardiff_Fox said:

Is today a good time to point out that Bangkok is in a state of emergency as the anti government protests against the Thai PM have reached fever pitch? 

No.

[Fox in the North 1,405]

2 hours ago, Cardiff_Fox said:

Is today a good time to point out that Bangkok is in a state of emergency as the anti government protests against the Thai PM have reached fever pitch? 

 

 

Edited 16 October by Fox in the North

[Saxondale 1,327]

If FFP was doing its job, we wouldn't need to have this discussion. The daft Mancs have made a mockery of FFP and I don't know where we go from here. 

 

Football clubs are not sustainable if they rely on money keep being pumped into them. Transfer and agent fees (plus, to a lesser extent, wages) have gone stratospheric over recent years, and it obviously can't keep going in the same direction.

 

We all baulked last week at the idea of paying £15 PPV for matches. The reality is that the amount Sky, BT et al pay for the TV rights is too high. 

 

Transfer values are dictated by a supply and demand. There is no such thing as a player 'value'. The cost to purchase a player is simply dictated by the availability of capital in the market at that time, the competition from other clubs to sign the player and the need for the selling club to raise capital.

 

Players aren't 100x better than 20 years ago, there is simply more available capital in the game. The only way to ensure everything is sustainable is to regulate the amount of capital in the game. It needs to start again from a blank sheet of paper.

 

 

[Heymister2015 410]

That’s because they put the funding in at the start and made the club self sufficient! Ie mega bucks under Sven, friendly with Real Madrid, stadium purchase, training ground refurbishment (Belvoir drive) and 10 years on they don’t need to anymore 

[sacreblueits442 822]

On 15/09/2020 at 11:57, pmcla26 said:

I think a lot of it comes down to the fact we haven’t used our Premier League status to pull in as many big sponsorship deals as you’d maybe hope for, but then we don’t know how much King Power benefit from having their name all over the stadium, shirt etc. which goes back into the club. 

...I would say they benefit a great deal, but they have earned they right to pay what they do!!!

[Vardinio'sCat 1,739]

Panic on the streets of Bangkok, and an injury list that is longer than the team sheet.

 

Country ridden with pox and loathing, friendless except for an orange imbecile.

 

If Carlsberg made shit storms...

[Guest Markyblue]

5 hours ago, Vardinio'sCat said:

Panic on the streets of Bangkok, and an injury list that is longer than the team sheet.

 

Country ridden with pox and loathing, friendless except for an orange imbecile.

 

If Carlsberg made shit storms...

Or alternatively 

Bangkok behaving as bangkok does an injury list that happens in pro football. 

A pandemic everyone is experiencing and we have plenty of PROPER friends. 

If carlsberg did drama...

[pmcla26 1,952]

12 hours ago, sacreblueits442 said:

...I would say they benefit a great deal, but they have earned they right to pay what they do!!!

Didn’t say they didn’t. Read again what I said and put it into context and you’ll see the point I was making. 

[sacreblueits442 822]

10 minutes ago, pmcla26 said:

Didn’t say they didn’t. Read again what I said and put it into context and you’ll see the point I was making. 

...the point you were making was that we (LCFC) failed  (in your view) to find suitable sponsorship after we claimed the title!!!

  There was never going to be an opportunity for any other sponsorship from  the naming of the stadium/shirts as this was the price we paid for the write off of debts amounting to some £100m by King Power. Getting the King Power brand in front of the millions of football supporters and the media that comes with it was an astute move by them.

  What I was saying is, I am glad that they did.

[pmcla26 1,952]

5 hours ago, sacreblueits442 said:

...the point you were making was that we (LCFC) failed  (in your view) to find suitable sponsorship after we claimed the title!!!

  There was never going to be an opportunity for any other sponsorship from  the naming of the stadium/shirts as this was the price we paid for the write off of debts amounting to some £100m by King Power. Getting the King Power brand in front of the millions of football supporters and the media that comes with it was an astute move by them.

  What I was saying is, I am glad that they did.

I’m sorry, you’ve missed my point completely. 
 

What I was saying was we potentially could have made more money out of sponsorship deals, as the finance stats show us ranking pretty low compared to other teams of similar statures, but we may actually have benefitted as we don’t know what King Power have made from sponsorship as a company, rather than Leicester City as a football club. 

 

[Webbo 16,080]

3 minutes ago, pmcla26 said:

I’m sorry, you’ve missed my point completely. 
 

What I was saying was we potentially could have made more money out of sponsorship deals, as the finance stats show us ranking pretty low compared to other teams of similar statures, but we may actually have benefitted as we don’t know what King Power have made from sponsorship as a company, rather than Leicester City as a football club. 

 

If you totted up everything King power have given us since the takeover it's probably more than most sponsorship deals we could achieve.

[sacreblueits442 822]

7 minutes ago, pmcla26 said:

I’m sorry, you’ve missed my point completely. 
 

What I was saying was we potentially could have made more money out of sponsorship deals, as the finance stats show us ranking pretty low compared to other teams of similar statures, but we may actually have benefitted as we don’t know what King Power have made from sponsorship as a company, rather than Leicester City as a football club. 

 

...I really do not understand, as what you have said, is what I have previously set out!!!

Yes we have benefitted because King Power were always going to be our sponsor and the £100m write off was the price they invested, in order for the sponsorship rights.

  You appear to discount the initial outlay, made in order to get us here, or perhaps I have still failed to understand where you are coming from?

[Vardinio'sCat 1,739]

12 hours ago, Markyblue said:

Or alternatively 

Bangkok behaving as bangkok does an injury list that happens in pro football. 

A pandemic everyone is experiencing and we have plenty of PROPER friends. 

If carlsberg did drama...

 

You are probably right on friends, NZ, the Aussies and Canada are decent shouts (at least until they ditch the Queen).

 

My next door neighbour is an example of what is going on in the real world. Her life partner is in a care home, struggling with blindness and mid-stage dementia but otherwise healthy. She hasn't seen him since the first lockdown. She has tried zoom calls and phoning, but he gets very distressed because he struggles to understand what is going on, or retain that understanding. It's so traumatic for them both that she has stopped calling all together.

 

But now you have reassured me that everything is fine, I can nip round and tell her, she will no doubt be delighted.

 

If Carlsberg did ostriches...

[KingsX 5,087]

6 hours ago, sacreblueits442 said:

...the point you were making was that we (LCFC) failed  (in your view) to find suitable sponsorship after we claimed the title!!!

  There was never going to be an opportunity for any other sponsorship from  the naming of the stadium/shirts as this was the price we paid for the write off of debts amounting to some £100m by King Power.

 

The idea that “there’s no other opportunity” for sponsorship is off base.  Shirt and stadium sponsorships are not a one-time right acquired with the club.  They are bid out at intervals.  They are separate in the accounts. 

 

Certainly, the £100m write off was nothing the Srivaddanaprabha family had to do.   As the “Anti-Glazers”, they relieved their new club of debt, rather than piling it on.  It set the tone for a nurturing (vice grasping) ownership style.  And financially, it made everything since possible.

 

So morally, no one should argue KP has further obligation.  And financially, converting debt allows injection of capital, as does direct owner sponsorship.

 

For me, this argument turns on another aspect of their ownership: continuing to maximize the success of the club.  To do this, they cannot leave significant money on the table.

 

The ascent from a yo-yo club to European level has changed the value of the sponsorships.  While there are few clubs that profile anything like us in the combination of things sponsors pay for (international fanbase, CL and EL exposure, League success), here are the clubs most comparable over the last 5 years:

 

 

I’m not beating this drum too loudly right now, because there is no questioning the intentions of these owners.  (And given the COVID crisis, the question may need to be pushed out a year.)  But commercial sponsorship is legitimate income under FFP and needs maximized.  I think the club should be booking more, either from KP or open sale of the rights.

[sacreblueits442 822]

4 minutes ago, KingsX said:

 

The idea that “there’s no other opportunity” for sponsorship is off base.  Shirt and stadium sponsorships are not a one-time right acquired with the club.  They are bid out at intervals.  They are separate in the accounts. 

 

Certainly, the £100m write off was nothing the Srivaddanaprabha family had to do.   As the “Anti-Glazers”, they relieved their new club of debt, rather than piling it on.  It set the tone for a nurturing (vice grasping) ownership style.  And financially, it made everything since possible.

 

So morally, no one should argue KP has further obligation.  And financially, converting debt allows injection of capital, as does direct owner sponsorship.

 

For me, this argument turns on another aspect of their ownership: continuing to maximize the success of the club.  To do this, they cannot leave significant money on the table.

 

The ascent from a yo-yo club to European level has changed the value of the sponsorships.  While there are few clubs that profile anything like us in the combination of things sponsors pay for (international fanbase, CL and EL exposure, League success), here are the clubs most comparable over the last 5 years:

 

 

I’m not beating this drum too loudly right now, because there is no questioning the intentions of these owners.  (And given the COVID crisis, the question may need to be pushed out a year.)  But commercial sponsorship is legitimate income under FFP and needs maximized.  I think the club should be booking more, either from KP or open sale of the rights.

...I understand your argument and logically it makes sense in order to boost our club by getting a sponsor who will be looking to pay a sizeable amount of money in Sponsorship!!!

  I may be naive but for what has happened to this club, due to King Power becoming our owners, I am perfectly happy as we are.

   Our investment in infrastructure has drawn a sizeable amount of funds away from  investing in the team, but we do not build training Centres or expand stadiums every year.