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Guest glasgowfox

Finances

By Guest glasgowfox, in Leicester City Forum

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Guest glasgowfox

Guest glasgowfox

Posted
Posted

I am only the messenger.   Anyone that has read my posts will know I don't pretend to be in the know.   I was told today by a guy who said he is in the know that the club are in dire financial difficulty.   Apparently 250 million in debt that has been hidden.   Allegedly the club have taken out a huge loan against assets including 20% of TV rights and if it goes tits up then we have agreed to pay parachute payments against the loan..... Before somebody comes back with oh a, friend of a friend of a friend... I am just saying what I have allegedly been reliably told.... I can take a slating but be prepared to eat humble pie if its correct bacause if it is then I expect it to hit the news in the next few weeks...genuinely hope I am wrong but I have my fears...ties in with KP not even sponsoring us anymore... 

ALC Fox

ALC Fox

Posted
Posted

Not slating you at all here but KP not sponsoring us was to increase revenue. KP were giving the club a pittance whereas the FBS money is very lucrative in comparison.

 

I can't comment on any of the other stuff, you may be right or wrong. I appreciate you're just a messenger and always interested to hear what inside info people may have received :thumbup:

shiv

shiv

Posted
Posted
2 minutes ago, glasgowfox said:

I am only the messenger.   Anyone that has read my posts will know I don't pretend to be in the know.   I was told today by a guy who said he is in the know that the club are in dire financial difficulty.   Apparently 250 million in debt that has been hidden.   Allegedly the club have taken out a huge loan against assets including 20% of TV rights and if it goes tits up then we have agreed to pay parachute payments against the loan..... Before somebody comes back with oh a, friend of a friend of a friend... I am just saying what I have allegedly been reliably told.... I can take a slating but be prepared to eat humble pie if its correct bacause if it is then I expect it to hit the news in the next few weeks...genuinely hope I am wrong but I have my fears...ties in with KP not even sponsoring us anymore... 

Not suggesting you’re trying to make things up but parts of what you said aren’t possible. A club can’t just hide debt from its balance sheet - their results are audited.

 

And KP not sponsoring Leicester is logical as the deal we got with FBS Global was our largest sponsorship deal in history. They sponsored us initially as a clever way of providing a cash injection as well as grow the King Power brand.

  • Like 2
Guest glasgowfox

Guest glasgowfox

Posted
Posted
Just now, ALC Fox said:

Not slating you at all here but KP not sponsoring us was to increase revenue. KP were giving the club a pittance whereas the FBS money is very lucrative in comparison.

 

I can't comment on any of the other stuff, you may be right or wrong. I appreciate you're just a messenger and always interested to hear what inside info people may have received :thumbup:

I so hope it's bullshit

chapero82

chapero82

Posted
Posted
Just now, glasgowfox said:

I so hope it's bullshit

 

Just now, glasgowfox said:

I so hope it's bullshit

The worrying part it's quite believable which we would never had thought 6 months ago

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VLC86

VLC86

Posted
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Posted (edited)

How would you hide £250m debt? And how would that even come about?

 

Sounds like bullshit to me, unless there has been some major levels of fraudulent accounting going on.

 

Probably a misinterpretation of these Macquarie charges. Although they clearly aren’t good.

Edited by Costock_Fox
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moore_94

moore_94

Posted
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Posted

The club can't just hide debt lol

 

We already knew about the loan against tv rights, it is something us and plenty of other clubs regularly do.

  • Like 9
shiv

shiv

Posted
Posted
Just now, glasgowfox said:

Hope your right guys... 

Our reported debt in 2021 was £219m so I’m not sure it’s a big secret we have debt. This was a loan to facilitate the training ground build which was widely documented.

 

The TV rights loan was just recently announced too which is pretty normal - just accelerates our access to those funds.

 

Nothing you’ve said has worried me and I’m an accountant by trade. 

  • Like 4
Guest glasgowfox

Guest glasgowfox

Posted
Posted
1 minute ago, Costock_Fox said:

How would you hide £250m debt? And how would that even come about?

Not a clue... They have to publish accounts... I am not itk but the guy seemed to know stuff

VLC86

VLC86

Posted
Posted
1 minute ago, st albans fox said:


it was hidden in hamza’s hair ……….

That bloke has fraudulently obtained enough wonga from us without hiding it in his pubes as well. Shocking and vile.

  • Haha 1
VLC86

VLC86

Posted
Posted (edited)
1 minute ago, glasgowfox said:

Not a clue... They have to publish accounts... I am not itk but the guy seemed to know stuff

I suspect your friend has misinterpreted the loans against TV money. His scenario would be correct upon relegation.

 

What I would say is that I don’t believe the article that twat from Sky put out a few weeks ago basically saying all is fine on this front. He’s clearly written that article on the promise of being given some info later on to help us out in negotiations.

Edited by Costock_Fox
  • Like 1
Ric Flair

Ric Flair

Posted
Posted

They'd sell up if that's the case or at the very least look for outside investment. You don't get out of huge debt at a club like ours and retain the same ambition the owners have had without huge investment, they wouldn't stick around trying to do so as it would be detrimental to the club and themselves. They aren't egotistical.

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desertfox2

desertfox2

Posted
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Posted (edited)

It's not unknown or hidden. The club has debt of more than that actually, its 270m ish I think I read. The bulk of it is owed to the King Power group (around 70%) so our actual debt to creditors that could potentially do us harm is relatively small for a Premier league club.  It's not like we have the Glazers here assuming no debt of their own and taking everything externally, our owners have taken it all on at their own risk pretty much. Spurs that club that everyone claims is so well run have a debt of more than 800m euros. Chelsea was over a billion before the sale.

 

Nothing has been hidden here the amount you are talking about is almost certainly the amount that's owed by the club to the owners. Things are bad enough right now let's not spread any fear especially for something which is adding 1+1 and getting 7. King Power have been the best owners we could ever have wished for and they have been fully transparent and taken on a huge debt liability themselves pushing us forwards which few owners do. 

Edited by desertfox2
KP
  • Like 8
joeybside

joeybside

Posted
Posted

What I don't get is you know when you are breaking FFP so it surely couldn't have come at any surprise to us that we became desperate to off-lid players.

 

So if we were telling Brendan at the end of the season he has money to spend, what happened in the short-term period which meant he now has no money to spend? And why wasn't this forecast or budgeted for? Something is massively wrong 

  • Like 1
Guest glasgowfox

Guest glasgowfox

Posted
Posted
2 minutes ago, shiv said:

Our reported debt in 2021 was £219m so I’m not sure it’s a big secret we have debt. This was a loan to facilitate the training ground build which was widely documented.

 

The TV rights loan was just recently announced too which is pretty normal - just accelerates our access to those funds.

 

Nothing you’ve said has worried me and I’m an accountant by trade. 

Like I've said just speaking in an open forum... I can't even manage my own finances... Well not when spending £500 for a round trip to watch todays dross

grobyfox1990

grobyfox1990

Posted
Posted
7 minutes ago, shiv said:

Not suggesting you’re trying to make things up but parts of what you said aren’t possible. A club can’t just hide debt from its balance sheet - their results are audited.

 

And KP not sponsoring Leicester is logical as the deal we got with FBS Global was our largest sponsorship deal in history. They sponsored us initially as a clever way of providing a cash injection as well as grow the King Power brand.

Not saying the post is anything other than pub talk, but Isn’t king power a private company? Moving £250m leverage off the books wouldn’t be that hard materiality wise in Thailand I’d assume…? Obvs if it’s in relation to the club then total rubbish 

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