Registration of Charge

[Ric Flair]

14 minutes ago, moore_94 said:

Realistically if we did go down the amount we could get from selling our players would be more than enough to get a squad good enough to come straight back up

You'd hope so, I'm quite unnerved by our actions in recent years though. The contracts we've given, continue to give and then the bizarre decisions we've made this summer means any assumption we know what we are doing isn't as presumed as it used to be. 

[Mike Oxlong]

Nothing to worry about. We’ve just borrowed £50m to sign Bednarek 

[gw_leics772]

12 hours ago, Chocolate Teapot said:

 

 

All i know is that it's possibly definitely significant in meaning something or other....

New oasis album name?

[st albans fox]

7 hours ago, Ric Flair said:

You'd hope so, I'm quite unnerved by our actions in recent years though. The contracts we've given, continue to give and then the bizarre decisions we've made this summer means any assumption we know what we are doing isn't as presumed as it used to be. 

Sometimes you have to do things in business that you know aren’t the right thing to do - but many of those occasions are because you are in debt to an institution and making that decision will drop your ‘value’ and cause headaches in the near term with your borrowing lines. 
 

of course in our instance it could be that we are making cold financial judgements around ‘assets’ rather than informed technical ones 

 

that generally goes one way in the longer term …..

[Terraloon]

8 hours ago, moore_94 said:

Realistically if we did go down the amount we could get from selling our players would be more than enough to get a squad good enough to come straight back up

It would seem that around 15 clubs now borrow in advance the main lenders alongside MacQuire are now it seems Barclays. The premier league require these agreements to be renewed every six months. The problem is that for some clubs , and unfortunately Leicester are in that number, the amount borrowed has risen and the interest rates that Mac Quire are now charging ( although not published ) are thought to be close to 10%. Indeed just look at the charge in the accounts and that is now over £11 million.

 

Burnley although not quite the same had to pay a £67 million loan off ( ironically that’s how much they have raised in this transfer window) as a consequence of relegation and yes they have sold players but none for truly big money and that is  because most players now have a relegation clause in their contract and that isn’t just about the player taking a pay cut it also sets a much reduced fee.

 

As I pointed out yesterday the 2021 accounts show an ever increasing amount of money being borrowed some possibly are soft loans that won’t attract interest but others definitely will and that £11 million won’t be reducing anytime soon.

 

Without any transfer income of note in 21/22 nor nothing  to date in the 22/23 I just can’t see how the cash position will come close to balancing let alone the accounting requirements and that means something has to give be it borrowing ,increased equity, cut backs or selling players . 
 

 

 

 

[Jakemoore]

8 hours ago, moore_94 said:

Realistically if we did go down the amount we could get from selling our players would be more than enough to get a squad good enough to come straight back up

Not necessarily. We can’t seem to shift any of our players because they’re all too highly paid by all account. Take Vestergaard for instance, Fulham wanted him for £10m but because we’ve over paid him, he won’t accept a £30k per week pay decrease to go. Even despite the fact that it would improve his WC chances. Someone at the club needs to be fired for handing out such high wages.

[coolhandfox]

Thing to note this are often not straight loans, they are often credit facilities which can be pulled down as required.

 

 

[coolhandfox]

Just now, Jakemoore said:

Not necessarily. We can’t seem to shift any of our players because they’re all too highly paid by all account. Take Vestergaard for instance, Fulham wanted him for £10m but because we’ve over paid him, he won’t accept a £30k per week pay decrease to go. Even despite the fact that it would improve his WC chances. Someone at the club needs to be fired for handing out such high wages.

We wouldn't be selling deadwood if we go down, it will be the likes of Barnes and Maddison. Who would be easier to shift.

[Ian Nacho]

9 hours ago, moore_94 said:

Realistically if we did go down the amount we could get from selling our players would be more than enough to get a squad good enough to come straight back up

We’d have to accept below market value for our players though to get players off the wage bill. 

[Terraloon]

17 minutes ago, coolhandfox said:

Thing to note this are often not straight loans, they are often credit facilities which can be pulled down as required.

 

 

There are credit facilities detailed in the accounts that haven’t been drawn down but this £80 million is a 4 year rolling deal and increased the previous amount borrowed by £20+ million. 
At year end cash on hand was healthy and had increased in line with borrowings but that number was now some 15 or so months ago

[Bayfox]

9 hours ago, moore_94 said:

Realistically if we did go down the amount we could get from selling our players would be more than enough to get a squad good enough to come straight back up

If we go down.

 

Who's not gonna 12 million Danny Ward on 60k a week

 

If we went down it would be a complete rebuild job I reckon. Half the squad is already out of contract next summer so we would lose them for nothing, then wave bye bye, to the likes of Harvey, luke, maybe KDH as they would become the biggest assets we have. 

 

Doesn't actually bare thinking about. 

 

Infact that's ruined my day already

[moore_94]

12 minutes ago, Ian Nacho said:

We’d have to accept below market value for our players though to get players off the wage bill. 

Even if we had to sell for under market value players like Castagne, Justin, Ndidi, Maddison, Barnes, Iheanacho etc. who would all likely leave would generate quite a lot of money for a rebuild

[coolhandfox]

@Terraloon also worth noting if you are looking at interest paid in the accounts, the interest on borrowing from the king power group is accrued but not paid according to Swish Ramble.

 

So the only interest we paid in the 20/21 accounts was 3m.

 

 

 

 

Edited 18 August 2022 by coolhandfox

[VLC86]

11 hours ago, moore_94 said:

Realistically if we did go down the amount we could get from selling our players would be more than enough to get a squad good enough to come straight back up

I said this last year but when Fofana goas this week, other than Maddison is there really another in the pipeline that would go for north of £30m? Bare in mind that’s in a scenario where we go down so it’s likely Barnes, Justin and Ndidi won’t have had the best of seasons.

 

Very risky to sign over potential parachute payments. Seems like the club have recognised that and we are going to have a year of no spending with the aim of getting us out of this cycle of spending next years money.

 

The more I look at us, the more I think we will try to bring another investor on board.

Edited 18 August 2022 by Costock_Fox

[Terraloon]

That’s right in accounting terms it was but we need to wait to see what that means for a full accounting year once we see how the new £80 million is structured, but the fact that interest is being loaded onto the debt and interest is accumulating on top of that larger debt will impact the numbers  .I am not sure how the current FFP or  indeed the PL P&S rules with view these interest charges but the fact remains it’s not free money.

 

What needs to be done is to a degree ignore the cash in the bank and look at income and expenditure because ultimately FFP pays little to no attention to the levels of debt

[Plastik Man]

9 hours ago, gw_leics772 said:

New oasis album name?

Maybe!

[ealingfox]

Starting to think securing them on the basis of 3 future seasons of PL money is becoming overly presumptuous. Very possible we aren't in the league in July 2025.

[Strokes]

Presumably it means we’ve partially agreed the sale of Fofana or Tielemans but the club aren’t offering up front money so we are factoring it again.

[fazzyfox]

Good to see they rate our status as outstanding 

[st albans fox]

1 hour ago, Strokes said:

Presumably it means we’ve partially agreed the sale of Fofana or Tielemans but the club aren’t offering up front money so we are factoring it again.

It doesnt

 

was posted earlier that these ‘general’ charges need to be either satisfied or renewed twice a year. 

charges against drawing down players fees are specific and refer to the buying club in them 

[taupe]

4 hours ago, coolhandfox said:

We wouldn't be selling deadwood if we go down, it will be the likes of Barnes and Maddison. Who would be easier to shift.

Indeed. We'd rely on the 'deadwood' to get us back up again. Oh, the irony.