LEICESTER POSTS £67M PRE-TAX LOSS

[foxes_rule1978]

COVID and all, pretty much was to be expected 

[Jobyfox]

I'll let those who are more financially literate than me make sense of this. Simple headline figures of profit and loss are rarely truly indicative of overall financial health. 

 

Just on the headlines though. I notice that Everton posted roughly double these losses for 19/20 and Aston Villa posted a £70m loss for the year ending 2019. 

Edited 19 March 2021 by Jobyfox

[Koke]

Our wage bill is quite high. We are 7th or 8th in that in terms of wages. Plus, Tielemans new contract coming up.  And Rodgers himself is on a huge contract. The good news is a few more contracts are coming to an end soon or have already ended (Slimani, Silva, Gray, Ghezzal). We pay high wages because we have several top players we want to keep, and we generate half the income Spurs generate. So these losses don't suppose me.

 

Champions League football would be very useful and I wouldn't be surprised of we sold one big player this summer.

[StriderHiryu]

55 minutes ago, Zear0 said:

https://www.lcfc.com/news/2071687/lcfc-financial-results-201920

 

Includes a summary from Sue

The Club did not utilise the government’s Job Retention Scheme, retained all permanent staff and, from its own funds, continued to pay the wages of all casual matchday and non-matchday personnel to the financial year-end, despite matches being suspended between March and May.

 

Much of the Club’s available human resource was deployed as part of a COVID-19 community response, offering personal, operational and financial support to the people and organisations in Leicester most affected by the pandemic.

The Club has also further invested towards long-term financial growth, through the acquisition of land adjacent to the ground that will be critical to the proposed future expansion and development of King Power Stadium.

 

 

What a club! I'd rather not signing players and even missing out on the Champions League to support a club who actually cares about their staff and people in their local area.

[SemperEadem]

2 minutes ago, StriderHiryu said:

The Club did not utilise the government’s Job Retention Scheme, retained all permanent staff and, from its own funds, continued to pay the wages of all casual matchday and non-matchday personnel to the financial year-end, despite matches being suspended between March and May.

 

Much of the Club’s available human resource was deployed as part of a COVID-19 community response, offering personal, operational and financial support to the people and organisations in Leicester most affected by the pandemic.

The Club has also further invested towards long-term financial growth, through the acquisition of land adjacent to the ground that will be critical to the proposed future expansion and development of King Power Stadium.

 

 

What a club! I'd rather not signing players and even missing out on the Champions League to support a club who actually cares about their staff and people in their local area.

Absolutely! This is the best thing they have done in years.

[Dusty]

In the grand scheme of things, I don’t think I this is that bad at all.

 

A big fall in match day revenue will have played a part, as well as some matches being held in the next financial year so we won’t see the benefit of those for 12 months. 
 

Clubs like West Ham, Chelsea and particularly Everton who posted a loss of nearly £200m have done much worse  than us. The champions league group stage alone makes the club about £20/25 m so you can see why the club want it so desperately.

 

Our wage to expenditure is quite high but not awful and we only have the 9th highest wage bill. And wage is supposed to be the most accurate predictor of league position, so we are clearly punching well above expectations. 
 

When you also consider the extra costs of stadium, of which will be paid over many years, our financial results over the for that 12 months will look much worse than they actually are. 
 

Next year (this season) will be better due to the minuscule net spend and European football. Then next season we should have champions league and full stadiums which could easily push the club into profits. 
 

It’s understandable why we didn’t splash the cash in January, but had it been 100% necessary, due to long term injury to Kasper/Vardy/Tielemans i think the club would have. I think there will be some to spend this summer, especially if we make the champions league, its just how well we can increase that with a couple of minor player sales. 

 

Considering we didn’t furlough anyone, I think it shows the club has always been comfortable and they are planning very well for the future. 
 

[mozartfox]

1 hour ago, SemperEadem said:

The club said the settlement of a legal dispute also contributed to admin expenses increasing by £5.7 million to £23.9 million.

 

Any ideas?

My money would be on the dispute with Tavares Agent - Ric Flair.  A slippery customer if ever there was one.

[Ric Flair]

This is no surprise and the 20/21 accounts are likely to be worse. Although the final quarter TV revenue for 2019/20 will instead be included in 20/21 accounts I imagine the rebate to fans for ticket refunds from 219/20 occurred after May 31st 2020 and are also in the 20/21 accounts.

 

It's really no surprise that we had a net transfer spend of near zero last summer as we know what's coming and we are better equipped than most to navigate this.

 

Thankfully we have a great chance of securing CL football next season which will likely wipe out any losses we make in 20/21.

[happy85]

 

[jammie82uk]

anyone know what land that’s been brought as I noticed last time I went to the ground a few weeks ago that the car dealership directly opposite the family stand is now empty

 

 

“The Club has also further invested towards long-term financial growth, through the acquisition of land adjacent to the ground that will be critical to the proposed future expansion and development of King Power Stadium.”

 

 

 

 

[Fox in the North]

5 minutes ago, jammie82uk said:

anyone know what land that’s been brought as I noticed last time I went to the ground a few weeks ago that the car dealership directly opposite the family stand is now empty

 

 

“The Club has also further invested towards long-term financial growth, through the acquisition of land adjacent to the ground that will be critical to the proposed future expansion and development of King Power Stadium.”

 

 

 

 

I think it’s a case of waiting until the accounts are published and then more information should be available.

[happy85]

6 minutes ago, jammie82uk said:

anyone know what land that’s been brought as I noticed last time I went to the ground a few weeks ago that the car dealership directly opposite the family stand is now empty

 

 

“The Club has also further invested towards long-term financial growth, through the acquisition of land adjacent to the ground that will be critical to the proposed future expansion and development of King Power Stadium.”

 

 

 

 

 

[Ric Flair]

9 minutes ago, happy85 said:

 

Rob, nearly every PL club will be posting losses similar or more to this. Play on.

[Fox in the North]

7 minutes ago, jammie82uk said:

anyone know what land that’s been brought as I noticed last time I went to the ground a few weeks ago that the car dealership directly opposite the family stand is now empty

 

 

“The Club has also further invested towards long-term financial growth, through the acquisition of land adjacent to the ground that will be critical to the proposed future expansion and development of King Power Stadium.”

 

 

 

 

Also these were plans from the county council website for when the club applied for the statue. I’d guess it’s the large warehouse directly behind the stand. Though it would be great if we could buy the EON building on the corner too as that would free up even more space. 

[Foxxed]

12 minutes ago, happy85 said:

 

So we're not including the 100m in this loss? I'd really be happier with CL football revenue.

[Danizen]

53 minutes ago, Chocolate Teapot said:

Mad then that turnover was 150m and over half of that would be accounted for by Maguire?

Are Man United paying in installments and we took a loan to access it up front. The same way we did with the Mahrez money?

[moore_94]

 

[moore_94]

3 minutes ago, Danizen said:

Are Man United paying in installments and we took a loan to access it up front. The same way we did with the Mahrez money?

It was reported we had managed to get pretty much all of it upfront

[happy85]

10 minutes ago, Foxxed said:

So we're not including the 100m in this loss? I'd really be happier with CL football revenue.

Think rob got it wrong . 

[hackneyfox]

27 minutes ago, happy85 said:

 

So Dorsett says cost of Training Ground not included but report on losses says:

During the season some £70.5 million went into building the £100 million training ground at Seagrave, near Loughborough, on top of £13.4 million the year before.

And since spring 2020 City have invested a further £21.2 million in facilities including another £19.4 million on the new training ground and £1.8 million on the stadium expansion plans.

 

Confused

[los dedos]

30 minutes ago, jammie82uk said:

anyone know what land that’s been brought as I noticed last time I went to the ground a few weeks ago that the car dealership directly opposite the family stand is now empty

 

 

“The Club has also further invested towards long-term financial growth, through the acquisition of land adjacent to the ground that will be critical to the proposed future expansion and development of King Power Stadium.”

 

 

 

 

Was the building next to the East stand still in use ?  Ss I remember someone saying we were buying that and whoever was using it were leaving in Feb .

[Foxxed]

12 minutes ago, happy85 said:

Think rob got it wrong . 

That only says the money "went into" building it. It doesn't claim about what the loss statement included.

 

The build is research and development. I know quite a few businesses that classify their staff as "research and development" staff because they pass less tax. I don't think that's happening here, obviously, but it's possible the build was not included on our loss statement, because it's an investment not an expenditure. And so it could be 67 million loss, not including the training centre. But it's unclear.

Edited 19 March 2021 by Foxxed

[Footballwipe]

38 minutes ago, jammie82uk said:

anyone know what land that’s been brought as I noticed last time I went to the ground a few weeks ago that the car dealership directly opposite the family stand is now empty

 

 

 

 

I thought the Council (County or City) had bought that for their property portfolio a few years ago:

 

It's here. County Council: https://www.leicestermercury.co.uk/news/local-news/leicestershire-county-council-spent-3m-2495329

[Guest ttfn]

15 minutes ago, hackneyfox said:

So Dorsett says cost of Training Ground not included but report on losses says:

During the season some £70.5 million went into building the £100 million training ground at Seagrave, near Loughborough, on top of £13.4 million the year before.

And since spring 2020 City have invested a further £21.2 million in facilities including another £19.4 million on the new training ground and £1.8 million on the stadium expansion plans.

 

Confused

The training ground is an asset on the balance sheet, the money spent on it is not included as a loss in the accounts.

[volpeazzurro]

1 hour ago, glenny_fox said:

Not exactly a shock.

Everton lost 140m

Southampton 75m

Brighton 67m etc etc

 

And none of those clubs have built a world class training facilities in that time.

They've not but, neither do we actually own it either from my understanding, it's been built with a loan hasn't it?