Finances

[JamieG]

The issue we are having is the 25 man rule we simply don't have enough room in the squad to sign new players.
We already have a bunch of players sitting around twiddling their thumbs not contributing.

If people used their brain it's pretty simple to work out. Last season Praet, Fofana, Thomas, Justin and Ricardo weren't registered at this stage of the season because of long term injury, being U21, or out on loan.
That's 5 players we have to register that we didn't have to register last summer, last summer we just so happened to coincidentally bring in 5 players (vestergaard, Bertrand, Daka, lookman, Soumare)

The problem we're having this summer is nobody wants to buy our shite.

It's pretty simple but people would rather just panic and believe the worst possible possibility

[fazzyfox]

I presume there’s hope that the situation improves by this time next year when the fact that no-one is coming in for Perez, Mendy, Bertrand, Soyuncu plus Amartey and Youri , won’t be our problem, they’ll be off the wage bill and gone. Yes we’ll need some players in but likely to be on more sensible wages and yes I know those end of contracts don’t bring in transfer fees. I’d just like someone at the club to admit that and appease fears that this crisis will be ongoing. And it is a crisis, we have around 18 trusted players I have faith in (if you personally don’t rate Albrighton & Thomas it’s down to 16) then 6-7 we don’t but will have to be called upon at some point (or in Amartey’s case every week).

Stay as we are and we’re an (inevitable) Jonny Evans injury away from a relegation fight, Brentford, Brighton, Southampton, Palace look bright and vibrant, Leeds look capable of Staying up and Forest are a lottery which just leaves Bournemouth and Fulham, maybe Villa and Everton? 

Beyond identifying individual wage concerns, surely there’s an argument for some investment in improving the squad to counter the thought of the financial impact of relegation.

 

Whatever happens in the next day a clearer communication is needed from club to the fans, ideally before kids buy Fofana shirts and people invest in increased price tickets. Personally it would not have changed my mind but we’re sleepwalking into this season unprofessionally unprepared so some transparency and long term optimism would be welcome right now.

 

[somebum]

Sure amazes me to read comments such as "but when the cost of living crises is over..."

 

I honestly think that this whole super league idea will be resurrected at some point, as "lesser" clubs go increasingly under. Football is simply a business and as smaller businesses go under, so too will the clubs.

 

Grim outlook 

[ealingfox]

Weird how we seem to be the only club affected by these FFP rules.

[st albans fox]

1 minute ago, ealingfox said:

Weird how we seem to be the only club affected by these FFP rules.

That’s because they have a chunk of playing staff earning ‘lowish wages’ 

 

all of ours seem to be on more than a decent wedge !!

 

 

 

[Beechey]

7 minutes ago, ealingfox said:

Weird how we seem to be the only club affected by these FFP rules.

We are one of the few club, in fact maybe the only club, with a wage to revenue ratio recently over 100%. Bournemouth's was in their last accounts whilst in the Championship, but they've just netted themselves £150m by being promoted, so they won't be any more. Even if it was "just" ~85%, it's still likely the highest in the division.

Edited 31 August 2022 by Beechey

[ealingfox]

11 minutes ago, Beechey said:

We are one of the few club, in fact maybe the only club, with a wage to revenue ratio recently over 100%. Bournemouth's was in their last accounts whilst in the Championship, but they've just netted themselves £150m by being promoted, so they won't be any more. Even if it was "just" ~85%, it's still likely the highest in the division.

 

Either a serious failure in recruitment, or in revenue-building, or both. Villa and Everton have spent stupid amounts in recent years and several more spend more than us.

[Rusko187]

Given we've had a couple of European bonus pay days and large sales of players. I don't think we've gone crazy with our spending in comparison to our recruitment but how on earth have we ended up in this mess? When you're seeing clubs like West Ham, Everton and even Nottingham Forest throwing money around like fun coupons... why is it we are so screwed when we don't operate even close to those levels?

 

Really does need an inquiry into what on earths going on.... very worrying to be reading that we have no money.

[Chrysalis]

1 minute ago, Rusko187 said:

Given we've had a couple of European bonus pay days and large sales of players. I don't think we've gone crazy with our spending in comparison to our recruitment but how on earth have we ended up in this mess? When you're seeing clubs like West Ham, Everton and even Nottingham Forest throwing money around like fun coupons... why is it we are so screwed when we don't operate even close to those levels?

 

Really does need an inquiry into what on earths going on.... very worrying to be reading that we have no money.

We have long had a bad wages to turnover ratio I am pretty sure I commented on it a couple of years back.

 

Wages can make a considerable difference to the ability to spend on transfer fees.

 

As an example 10 players on 80k a week costs 42 million a season.

Those same players on 40k a week would be allowing an increased sped on 21 million a season, which considering fees get spread out over cost of contract for accounting purposes, that could mean e.g. funding a 100 million 5 year deal for a player.  Or say three 30 million five year deal players.

[whetstonefox]

I guess until the club says anything (which they won’t ) it’s all speculation and we’ll believe whoever we think is in the know whether they are or not. A message from Top or Whelan to offer some reassurance / state of play would not go amiss though. 

[st albans fox]

Could there be a cashflow issue at king power and a dividend from Lcfc is required ? 
 

hence short term issue for the club 

 

I’m just musing - know nothing 

[Babylon]

33 minutes ago, ealingfox said:

 

Either a serious failure in recruitment, or in revenue-building, or both. Villa and Everton have spent stupid amounts in recent years and several more spend more than us.

Your'e comparing apples to oranges. 

[Chrysalis]

3 minutes ago, st albans fox said:

Could there be a cashflow issue at king power and a dividend from Lcfc is required ? 
 

hence short term issue for the club 

 

I’m just musing - know nothing 

I assume that would show up in next years accounts if it happens?

[Long Eaton Fox]

We're paying off last summers spending when we didn't sell a player unlike previous seasons. Also last summers spending was around £55m and those players are now worth around £35m.

[st albans fox]

Just now, Chrysalis said:

I assume that would show up in next years accounts if it happens?

Could also be an inter company loan which would be repaid to avoid it coming off the balance sheet 

[Rusko187]

3 minutes ago, Chrysalis said:

We have long had a bad wages to turnover ratio I am pretty sure I commented on it a couple of years back.

 

Wages can make a considerable difference to the ability to spend on transfer fees.

 

As an example 10 players on 80k a week costs 42 million a season.

Those same players on 40k a week would be allowing an increased sped on 21 million a season, which considering fees get spread out over cost of contract for accounting purposes, that could mean e.g. funding a 100 million 5 year deal for a player.  Or say three 30 million five year deal players.

I can never get my head around this stuff but I appreciate you explaining this. 

 

So really this (what we understand/believe) is all down to wages. Surely the club should be better at this?

[Long Eaton Fox]

Gambled on getting into europe and failed.

[Babylon]

16 hours ago, JamieG said:

The issue we are having is the 25 man rule we simply don't have enough room in the squad to sign new players.
We already have a bunch of players sitting around twiddling their thumbs not contributing.

If people used their brain it's pretty simple to work out. Last season Praet, Fofana, Thomas, Justin and Ricardo weren't registered at this stage of the season because of long term injury, being U21, or out on loan.
That's 5 players we have to register that we didn't have to register last summer, last summer we just so happened to coincidentally bring in 5 players (vestergaard, Bertrand, Daka, lookman, Soumare)

The problem we're having this summer is nobody wants to buy our shite.

It's pretty simple but people would rather just panic and believe the worst possible possibility

For the last time, no.

 

It's a cash issue, Percy says it's a cash issue. If cash wan't the issue we'd just get rid of players and pay out most of their wages. And if anyone says "that's not a good way to run a business", neither is losing double digit millions every year, but here we are. Normal rules don't matter half the time in football. 

[HankMarvin]

17 hours ago, JamieG said:

The issue we are having is the 25 man rule we simply don't have enough room in the squad to sign new players.
We already have a bunch of players sitting around twiddling their thumbs not contributing.

If people used their brain it's pretty simple to work out. Last season Praet, Fofana, Thomas, Justin and Ricardo weren't registered at this stage of the season because of long term injury, being U21, or out on loan.
That's 5 players we have to register that we didn't have to register last summer, last summer we just so happened to coincidentally bring in 5 players (vestergaard, Bertrand, Daka, lookman, Soumare)

The problem we're having this summer is nobody wants to buy our shite.

It's pretty simple but people would rather just panic and believe the worst possible possibility

Marc Albrighton, Daniel Amartey, Harvey Barnes, Filip Benkovic, Ryan Bertrand, Timothy Castagne, Hamza Choudhury, Patson Daka, Kiernan Dewsbury-Hall, Jonny Evans, Kelechi Iheancho, Eldin Jakupovic, James Justin, Ademola Lookman, James Maddison, Wilfred Ndidi, Ricardo Pereira, Ayoze Perez, Kasper Schmeichel, Boubakary Soumare, Caglar Soyuncu, Youri Tielemans, Jamie Vardy, Jannik Vestergaard, Danny Ward.
 

Justin and Ricardo were both in the 25 by Sep 21

 

 

[HankMarvin]

17 hours ago, JamieG said:

The issue we are having is the 25 man rule we simply don't have enough room in the squad to sign new players.
We already have a bunch of players sitting around twiddling their thumbs not contributing.

If people used their brain it's pretty simple to work out. Last season Praet, Fofana, Thomas, Justin and Ricardo weren't registered at this stage of the season because of long term injury, being U21, or out on loan.
That's 5 players we have to register that we didn't have to register last summer, last summer we just so happened to coincidentally bring in 5 players (vestergaard, Bertrand, Daka, lookman, Soumare)

The problem we're having this summer is nobody wants to buy our shite.

It's pretty simple but people would rather just panic and believe the worst possible possibility

Marc Albrighton, Daniel Amartey, Harvey Barnes, Filip Benkovic, Ryan Bertrand, Timothy Castagne, Hamza Choudhury, Patson Daka, Kiernan Dewsbury-Hall, Jonny Evans, Kelechi Iheancho, Eldin Jakupovic, James Justin, Ademola Lookman, James Maddison, Wilfred Ndidi, Ricardo Pereira, Ayoze Perez, Kasper Schmeichel, Boubakary Soumare, Caglar Soyuncu, Youri Tielemans, Jamie Vardy, Jannik Vestergaard, Danny Ward.
 

Justin and Ricardo were both in the 25 by Sep 21

 

 

[HankMarvin]

Edit, posted twice 

[Tommy G]

59 minutes ago, st albans fox said:

Could there be a cashflow issue at king power and a dividend from Lcfc is required ? 
 

hence short term issue for the club 

 

I’m just musing - know nothing 

Absolutely zero chance of this happening. 

[volpeazzurro]

1 hour ago, Long Eaton Fox said:

Gambled on getting into europe and failed.

Well we got there but the initial management of early group stages in a relatively easy group was very poor. As is Rodgers previous management forays into Europe elsewhere. 

[splinterdream]

On 29/08/2022 at 10:43, TheStig said:

But as air travelling has picked up again after the pandemic those figures will increase again shortly. So hopefully we are "only" in a temporary bad spot.......

We say Top, but this is King Power isn’t it? He won’t be solely in charge of KP and I personally wouldn’t be surprised at all if he was looking for an exit strategy, must be difficult with his dads legacy but I’d bet his extended family with few links here would be encouraging it.

[mozartfox]

Thailand is opening up now (my Chimney Sweep is a massive Monger and is flying out next month) so King Power´s revenue should start to increase in the short term, but that is not going help us through this mess of our own making.  We need to rid ourselves of the deadwood first and foremost and ensure the Recruitment Team are blocked from bringing in more sick trees.