LEICESTER POSTS £67M PRE-TAX LOSS

[Chocolate Teapot]

8 minutes ago, ttfn said:

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

Feel like we could do with a summary from you here. We could host a zoom call with some journos too to make them slightly better informed.

 

What headline grabbing shite from Dorsett.

[Ric Flair]

I'll be fascinated to see the published accounts. The waters seem muddied because we've had these recent loans on the back of being told we received nearly all the £80m from Maguire up front. That said we spent all of that on Tielemans, Perez, Justin and Praet. 

[coolhandfox]

As expected.

 

All clubs across the world will be in the same boat.

 

Be quiet summer window for must clubs.

 

We have done excellent work on the squad build front, we aren't in need of major surgery in the summer.

 

Lots of value in the market.

[Fox in the North]

34 minutes ago, Ric Flair said:

I'll be fascinated to see the published accounts. The waters seem muddied because we've had these recent loans on the back of being told we received nearly all the £80m from Maguire up front. That said we spent all of that on Tielemans, Perez, Justin and Praet. 

Think the extension of the season last year will complicate things too.

[foxinsocks]

3 hours ago, Fox in the North said:

Dave rennie maybe?

Unlikely to cost that much.  

[Bert]

I’m not being funny but If we were in any sort of trouble, we’d not have continued to pay casual match day staff. 

[eblair]

3 hours ago, StanSP said:

Also, these costs in general are no surprise at all. Every club in the land would have made a loss unless they've sold a player for huge money.

 

The figures for this season (20/21) are likely to be the same given we've gone a whole season without fans so I wouldn't expect huge moves in the summer. 

 

Perhaps even more vital we get CL football as it's much more income to benefit from and perhaps halt the losses to such an extent.

 

Nice to see our owners paid staff in full, though, and didn't opt for the furlough scheme for anyone. 

 

was thinking a lot of press about football clubs and furlough schemes was pretty stupid

 

scheme designed to help business whose income was severely disrupted due to the pandemic, judging from PL clubs accounts they have all been completely battered for a year

[st albans fox]

1 hour ago, ttfn said:

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

I would be surprised if they could include the entire cost as an asset ......and some of the cost would have to be written off each year ???

 

21 minutes ago, foxinsocks said:

Unlikely to cost that much.  

like 5% of that amount (and in this years accounts anyway)

[turlo]

3 hours ago, kyleolly said:

Yeah that’s why I wondered how much the prize money was so the 20/21 accounts will have two lots of prize money included 

28 mill merit payment according to the table in this article. was looking for another source to verify

https://sqaf.club/premier-league-prize-money-distribution/

[gerrytaggart]

4 hours 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?

No idea.

[jeffschlupp]

As others have said, entirely expected and in line with other clubs.

 

We have a very solid base at the club - training ground is done, stadium is ours with all the tools needed for expansion in the long run. I would imagine expansion probably doesn't get any more traction until at least stadiums are full again.

 

Most of our assets in the playing and coaching staff are tied down for a long time, and there will be another round of big contracts on their way that can be paid for.

 

KPI are not in this big financial black hole that Dorsett implies they are in. Why do you think they entered a cushy little deal with the Thai tourist board over the summer? That runs a hell of a lot deeper than just a cheap slogan on our shirts, believe me.

 

Top and Whelan are very good at this stuff, they've done it for years. 

 

Vichai, May 2016: "A lot of people worry about 'what if we sell the club?' I can confirm, this club, we're going to keep it forever. I want to make the team to be very, very strong - I don't go too fast, then we can fall down. We still keep going the same, step by step."

[Guest ttfn]

36 minutes ago, st albans fox said:

I would be surprised if they could include the entire cost as an asset ......and some of the cost would have to be written off each year ???

 

like 5% of that amount (and in this years accounts anyway)

Materially all of it will be capital. In fact I’d be surprised if basically any of it is expensed.
 

It’s a property so it’s not depreciated, it’s revalued (up or down) every year. Elements within the property (tech, gym equipment etc) will be depreciated but not the property itself which is presumably where the overwhelming majority of the value sits. 

[BoyJones]

4 hours ago, eblair said:

season didnt finish until july and our year end is 31st may; so maybe one of reasons results so bad

Good point. It’s normally about £2m per place, so 5th or 16th from bottom £32m?

[surrifox]

1 hour ago, foxinsocks said:

Unlikely to cost that much.  

Unlikely to have been litigated and settled in the time frame either.

 

Also i don’t think many manager departures come before m’learned friends either . Contracts would be tightly drawn and prescriptive on entitlement in the event of  termination with mutually agreed terms and liquidated damages as appropriate . 

[whetstonefox]

Given the losses of all clubs the summer transfer window will be pretty quiet. Can see the 2 Manchester clubs , Chelsea and Liverpool spending a fair bit (but even then less than in previous years) but the rest will be relying on good scouting, judgement and luck.

 

if we can secure CL it’s only those 4 clubs mentioned that are likely to look at our players anyway and we’ll be under less pressure to sell. 
 

Let’s just hope 2021/22 is normal though I can’t see away fans being allowed back so perhaps we’ll have an extra 3000 home tickets up for grabs. 

[StriderHiryu]

3 minutes ago, jeffschlupp said:

 

Vichai, May 2016: "A lot of people worry about 'what if we sell the club?' I can confirm, this club, we're going to keep it forever. I want to make the team to be very, very strong - I don't go too fast, then we can fall down. We still keep going the same, step by step."

Top said exactly the same thing after his father died too. Shortly thereafter he fired Puel and brought Rodgers in, and since then we've finished 5th and built the best training academy in the country. Believe in KP because they know what they are doing.

 

We can already see how well the club is functioning . Chilwell developed through the academy and sold for 50m, with two replacements brought in for half of that in Castagne and JJ, as well as a home grown talent that looks to have even more potential in Thomas. We could make some money on Choudhury, and would get over 60m for Barnes if we sold him, which we won't. 

 

On the pitch we've shown we can bring in new players, change our style and create new heroes. Vardy will always be the GOAT, but since the start of the year, it's been Barnes, Maddison, Tielemans, Nacho doing the business. The rest ain't bad either.

 

We are going places people! Sit back and enjoy the ride! 

[Chocolate Teapot]

55 minutes ago, Bert said:

I’m not being funny but If we were in any sort of trouble, we’d not have continued to pay casual match day staff. 

Doesn't stop the doom mongers on twitter predicting we'll sell all our big names.

[norwichfox]

Does the compensation paid to Celtic for Rodgers and the cost of the loan we took out for the Training Centre appear in this set of accounts?

[st albans fox]

2 minutes ago, norwichfox said:

Does the compensation paid to Celtic for Rodgers and the cost of the loan we took out for the Training Centre appear in this set of accounts?

No to Brendan 

 

and no idea re the loans for the TG ....there could be all kinds of creative accounting being used on that over the years ....

[Tielemans63]

Not too concerned but making next season's Champions League would certainly help us massively in the long run.

[Chrysalis]

At first it seems bad, but it still would be a £30 million loss if we matched last season revenues, and according to the article a £70 million outlay is in the accounts for the infrastructure.  Then there is the legal settlement (possibly celtic?) and having to pay back some tv money in that as well.

Edited 19 March 2021 by Chrysalis

[Costock_Fox]

4 hours ago, Grebfromgrebland said:

Without reading anything about this isn't most of this the training ground construction?

Without reading any of your post, I don’t like cabbage either.

[Costock_Fox]

2 hours ago, coolhandfox said:

As expected.

 

All clubs across the world will be in the same boat.

 

Be quiet summer window for must clubs.

 

We have done excellent work on the squad build front, we aren't in need of major surgery in the summer.

 

Lots of value in the market.

Agreed, good job we have a good young squad so actually there isn’t a need Thor a dramatic overhaul. If we had an ageing squad It would be a worry.

[sm1]

I don't think it's a massive problem because PL prize money isn't included, since the season finished after the accounts were submitted. We've got 132M from the PL, more than enough to off set the losses.

[Ric Flair]

3 minutes ago, sm1 said:

I don't think it's a massive problem because PL prize money isn't included, since the season finished after the accounts were submitted. We've got 132M from the PL, more than enough to off set the losses.

Only less than a quarter of it wasn't included in the 19/20 accounts.