Seagrave Training Centre

[Terraloon]

43 minutes ago, FoxFossil said:

The Administrators will sell in a fire sale of assets once King Power go bust, and the club is in receivership, in 18 months, after a year in Div 1. No one will buy it before then, when they can get it for virtually nothing.

Of course the fortunes of KP and the club are  linked and if KP fails then it’s inevitable that the impact on LC will be catastrophic as would relegation to Division 1.

 

The reality is Seagrave is  not affordable and yes  it might develop academy products but sadly even the cost of the academy

will probably not be affordable if there’s a relegation and certainly not if LC energy any type of insolvency event.

 

As to what would happen if the club went into administration, God forbid, then it would set of a sequence of events that won’t be as straightforward as “ LC fails, debts written off, KP gone, new club formed all are happy.
 

Unlike many clubs that sadly go into Administration any  practitioner dealing with LC  wouldn’t  be able to look forward to getting monies owed for parachute payments or money from transfer fees still due as we know that’s all been received and most likely spent. 
 

So yes there would could be a fire sale and the administration would focus primarily on creditors and shareholders. There wouldn’t likely be  any surplus to fund a new club because after paying off football creditors, and of course other creditors any surplus goes to either the FA or local sporting  entities and I doubt that a to be formed club would qualify for a portion of any final distribution.

I have talked about before, is the ownership of the stadium yes LC own it but are buying it from KP. What is the situation when it comes to Seagrave? . The funds to develop came from KP are KP able to call in ,on 12 months notice , all sums owed by City to KP. 

 

KP suffering an insolvency event  would inevitably lead to those debts being called in. Those sums are so large that much would have to written off . Players values in an administration would be minimal, realising sums due from debtors wouldn’t be great ( see comments around transfer fees and parachute payments ) 

 

So to those that think all that would happen if LC or indeed KP went into administration would be a points deduction they need to think again . 

[davieG]

13 minutes ago, jonny_wright said:

C.15m a year operating costs, it’s a burden and a luxury we can’t afford, our downfall started with Seagrave, get the squad back to Belvoir drive and sell it to Hilton or whoever…: cause it’s gonna be our downfall 

If by that you mean instead expanding the stadium otherwise I don't see it as the build did not impact on PSR. Our downfall was the the over indulgence of our players, the overpaying of transfer fees, allowing them the luxury of leaving for nothing, treating them like honoured guests at a top hotel and most of all paying them way beyond their worth. 

[Terraloon]

23 minutes ago, jonny_wright said:

C.15m a year operating costs, it’s a burden and a luxury we can’t afford, our downfall started with Seagrave, get the squad back to Belvoir drive and sell it to Hilton or whoever…: cause it’s gonna be our downfall 

It’s expensive of that there is no doubt but £15 m is incredibly wide of the mark . Between half and a third of that sum

[davieG]

Assuming KP survives if we are relegated to L1 would it be possible to mothball Seagrave and  move the men to share BD whilst we're in L1. the running cost's would be dramatically reduced.

[Foxdiamond]

Sell Seagrave and go back to Belvoir Drive. Not convinced a grade one academy is required either. 

[BigGibbo]

4 minutes ago, davieG said:

Assuming KP survives if we are relegated to L1 would it be possible to mothball Seagrave and  move the men to share BD whilst we're in L1. the running cost's would be dramatically reduced.

 

True, but taking away our world class facilities, particularly from the youth team, could then compound our problems and contribute to keeping us meandering in the mire.

 

We would then become more likely to be tempted to sell it to Forest to stay afloat, and I, for one, would rather it was demolished than that.

 

On the other hand, going back to basics with facilities in League One could be the jolt of reality that helps our pampered losers bounce straight back up. 

 

Let us pray it is the latter should, as is seeming increasingly likely, it come to it. 🙏

[BigGibbo]

10 minutes ago, Foxdiamond said:

Sell Seagrave and go back to Belvoir Drive. Not convinced a grade one academy is required either. 

To whom?

[davieG]

6 minutes ago, BigGibbo said:

 

True, but taking away our world class facilities, particularly from the youth team, could then compound our problems and contribute to keeping us meandering in the mire.

 

We would then become more likely to be tempted to sell it to Forest to stay afloat, and I, for one, would rather it was demolished than that.

 

On the other hand, going back to basics with facilities in League One could be the jolt of reality that helps our pampered losers bounce straight back up. 

 

Let us pray it is the latter should, as is seeming increasingly likely, it come to it. 🙏

Maybe just keep it open for the Academy I'm sure their could still be big savings

[Sly]

5 minutes ago, BigGibbo said:

Don't know if I could cope with that 😂 😭

We’ll know more on the financial situation with King Power around the end of April I’d imagine, when the 2025 a accounts visible here

 

 

https://datawarehouse.dbd.go.th/company/profile/50105539024396

 

King Power have lots of other assets they’d be better off selling before Seagrave. I can imagine we’d be better sold as a complete package, training ground, stadium, players etc rather than piece meal. 
 

Belvoir Drive is an interesting one, as you can’t do a lot with it, unless the Council give planning permission for re-development. As its sports pitches, I wonder if they’d made a 6 a side facility on it and used it as an income stream, if that would suffice? Obviously annoy all the residents in Aylestone with shouting teenagers and massive floodlights, however that’s the price you pay …..

 

If King Power or the family at least go into administration, they’ve got hotels, sky scrapers, OHL, polo clubs etc, it just depends what gives.

 

If you look at King Power in terms of size, then going bust would be the equivalent of Heathrow Airport Retail Partners going bust.

 

King Power have got a semi monopoly in the market they’re in, however in my tourism retailer companies sizes, they’re not a Dufry or Lagardére. 

[Finn Claw II]

You can’t both want to fill the team with youth talent and want to sell our training facilities at the same time.

 

We won’t go into administration - we have two years of parachute payments. 

[BigGibbo]

4 minutes ago, davieG said:

Maybe just keep it open for the Academy I'm sure their could still be big savings

Now we're talking. I hope that would be possible as the youth shouldn't be punished for the failings of the 'men'. 🤞

[BigGibbo]

3 minutes ago, Finn Claw II said:

You can’t both want to fill the team with youth talent and want to sell our training facilities at the same time.

 

We won’t go into administration - we have two years of parachute payments. 

Only 1 more if we go down as parachute payments only apply in the Championship. Aside from the fact we've already sold that income to Macquarie as I understand.

[Sly]

36 minutes ago, Terraloon said:

Of course the fortunes of KP and the club are  linked and if KP fails then it’s inevitable that the impact on LC will be catastrophic as would relegation to Division 1.

 

The reality is Seagrave is  not affordable and yes  it might develop academy products but sadly even the cost of the academy

will probably not be affordable if there’s a relegation and certainly not if LC energy any type of insolvency event.

 

As to what would happen if the club went into administration, God forbid, then it would set of a sequence of events that won’t be as straightforward as “ LC fails, debts written off, KP gone, new club formed all are happy.
 

Unlike many clubs that sadly go into Administration any  practitioner dealing with LC  wouldn’t  be able to look forward to getting monies owed for parachute payments or money from transfer fees still due as we know that’s all been received and most likely spent. 
 

So yes there would could be a fire sale and the administration would focus primarily on creditors and shareholders. There wouldn’t likely be  any surplus to fund a new club because after paying off football creditors, and of course other creditors any surplus goes to either the FA or local sporting  entities and I doubt that a to be formed club would qualify for a portion of any final distribution.

I have talked about before, is the ownership of the stadium yes LC own it but are buying it from KP. What is the situation when it comes to Seagrave? . The funds to develop came from KP are KP able to call in ,on 12 months notice , all sums owed by City to KP. 

 

KP suffering an insolvency event  would inevitably lead to those debts being called in. Those sums are so large that much would have to written off . Players values in an administration would be minimal, realising sums due from debtors wouldn’t be great ( see comments around transfer fees and parachute payments ) 

 

So to those that think all that would happen if LC or indeed KP went into administration would be a points deduction they need to think again . 

This is a really important point, as the stadium is owned by a shell company in effect (K Power Holdings Co Ltd), which is registered in the British Virgin Islands. This gives it tax breaks and asset protection. 

 

[Sly]

1 minute ago, BigGibbo said:

Only 1 more if we go down as parachute payments only apply in the Championship. Aside from the fact we've already sold that income to Macquarie as I understand.

I tried to do some digging on how the parachute payments work. It’s a little murky to say the least.

 

I guess we’ll not renew lots of our big wage earners and sell off the likes of Fatawu on the cheap before we sell the training ground. 

[BigGibbo]

7 minutes ago, Sly said:

I tried to do some digging on how the parachute payments work. It’s a little murky to say the least.

 

I guess we’ll not renew lots of our big wage earners and sell off the likes of Fatawu on the cheap before we sell the training ground. 

That's our immediate problem, as of now, being asset stripped on the cheap.

 

Fatawu and Khannous would have been worth upwards of 50M each if we were on a stable footing, but we'll be lucky to save face with 20M apiece going forward.

[Stevosevic]

They’re not going to sell the training ground. 

[Sly]

4 minutes ago, BigGibbo said:

That's our immediate problem, as of now, being asset stripped on the cheap.

 

Fatawu and Khannous would have been worth upwards of 50M each if we were on a stable footing, but we'll be lucky to save face with 20M apiece going forward.

I think El Khannous is already burning bridges where he is. He got dragged at half time the other day. 
 

Talented but doesn’t have the right attitude. 

[BigGibbo]

Just now, Sly said:

I think El Khannous is already burning bridges where he is. He got dragged at half time the other day. 
 

Talented but doesn’t have the right attitude. 

Wonder where he got that from 😏

[foxile5]

1 hour ago, FoxFossil said:

Aiyawatt is a minor shareholder. If KP go bust, we go bust. If KP are basically in administration and Top was forced to step down by administrator of KP, wonder how bad KP get before administrators start to look at stripping out non-core activities, such as oversea football.

Yeah I'm aware of that. 

 

I was more asking why people get so passionate - 'KP aren't our owners, Aiywatt is'. It becomes a hill for some to die on despite there being evidence showing that LP own us.

 

I want to know why people are so enthused by the idea of KP not owning us. 

[Danizen]

Regarding Belvoir Drive, I've always wondered how concrete these covenants are (I believe Stamford Bridge is also bound by one).

 

At what point does the country's chronic housing shortage supercede a 50 year old agreement with the YMCA? 

[Foxdiamond]

57 minutes ago, BigGibbo said:

To whom?

That is the issue

[Chrysalis]

Mentioned in both of those very good videos now, the atmosphere and costs completely inappropriate for non elite players.

What we have learnt the hard way is the coaching personnel and squad building is far more important, I feel Vichai built this after the struggle to keep Mahrez thinking it would stop those type of problems in the future.

Edited 14 February by Chrysalis

[-sodapop]

This is maybe a stupid question, and I'm asking at I genuinely don't know how these things work, but who would even buy it if we were to try and sell it? It seems a pretty niche development but maybe the land value alone is something? Maybe Loughborough Uni?

[Sly]

16 minutes ago, -sodapop said:

This is maybe a stupid question, and I'm asking at I genuinely don't know how these things work, but who would even buy it if we were to try and sell it? It seems a pretty niche development but maybe the land value alone is something? Maybe Loughborough Uni?

It would be let by a specialist agent if they were actively selling it. It wouldn’t typically be out in the public domain, as it would be more of a case that agent would contact perspective buyers. 

 

The other way is that a perspective buyer does a land search for the sum of £3, identifies the owner of said land and contacts them directly. 

[st albans fox]

2 hours ago, BigGibbo said:

Only 1 more if we go down as parachute payments only apply in the Championship. Aside from the fact we've already sold that income to Macquarie as I understand.

We have one more year of PP to come. (We don’t get 3 because we were straight up and straight down again) 

we would still receive that final PP in league 1