King Power Writes Off Entire Club Debt

[Nick]

1 minute ago, Lambert09 said:

Why would he write off 200m if he was selling 

It would raise the value of the club.

 

BTW - I don't think he's selling...

[Lambert09]

Just now, Nick said:

It would raise the value of the club.

 

BTW - I don't think he's selling...

It doesnt change what he gets. He gets 200m less when selling... but he would get 200m less now as he just wrote it off. 

 

All it does is stop him making intertest. Thats not a move someone makes if they want to make more money personally. Which indicates more dedication to the club, not the other way around. 

 

 

 

 

[Nick]

3 minutes ago, Lambert09 said:

It doesnt change what he gets. He gets 200m less when selling... but he would get 200m less now as he just wrote it off. 

 

All it does is stop him making intertest. Thats not a move someone makes if they want to make more money personally. Which indicates more dedication to the club, not the other way around. 

 

 

 

 

It raises the value of the club to a potential suitor as it's 200m that a purchaser doesn't have to pay as a debt and can inject into other areas. Assets without existing debt are more valuable than those with generally? 

[shiv]

12 minutes ago, SemperEadem said:

Alright Susan.

Next time don’t be a Karen then 

[Lambert09]

5 minutes ago, Nick said:

It raises the value of the club to a potential suitor as it's 200m that a purchaser doesn't have to pay as a debt and can inject into other areas. Assets without existing debt are more valuable than those with generally? 

Honestly, I dont know if that does effect it. In my head, if theres 200m debt, maybe buyers pay 200m less than they would. So it doesnt mean that because 200m is written off someone would pay 250m more for it. If that makes sense? 

 

Someone ask simon jordon, im sure he'll be able to explain what it could mean and the motives.  

 

Personally, it just seems like he's 1 showing the fans hes still engaged and 2, putting us in a better position with ffp for the summer rebuild.  (Whether thats a  move to offer a perspective buyer... my guess would be as good as yours) 

 

 

Edited 1 February 2023 by Lambert09

[Nick]

Just now, Lambert09 said:

Honestly, I dont know if that does effect it. In my head, if theres 200m debt, maybe buyers pay 200m less than they would. So it doesnt mean that because 200m is writter off someone would pay 250m more for it. If that makes sense? 

 

Someone ask simon jordon, im sure he'll be able to explain what it could mean and the motives.  

 

Personally, it just seems like he's 1 showing the fans hes still engaged and 2, putting us in a better position with ffp for the summer rebuild.  (Whether thats a  move to offer a perspective buyer... my guess would be as good as yours) 

 

 

And I think you are right with both your final points and no I don't think he's selling it either - you just asked a question and I tried to answer! 

[st albans fox]

Paying off the debt will not affect what KP would get in the event of a sale. 
 

however, there are other scenarios where it will help.  It’s definitely not a bad thing for the club. I’m sure there are reasons for KP doing this other than the family being v good owners (which they are) 

[Craig]

Sack the board! Top OUT!

[CosbehFox]

1 hour ago, indierich06 said:

Can all those people pontificating about how Top has 'lost interest' please give it a rest now?

It’s akin to paying off a credit card where you are the bank 

[David Hankey]

As I have said before on these boards if other Clubs had an owner like ours football wouldn't be in the parlous state it's in. Well done Top!!

[FoxyPalace.com]

Clean slate, great 👍 

[Claridge]

3 minutes ago, Craig said:

Sack the board! Top OUT!

There were people who were actually arguing this a couple of weeks ago

[FosseSpark]

Could mean he's selling and wants it to be more attractive. I don't think that's the case though. There must be a better rate we can access for finance arrangements if we have lower overall debt, so perhaps it makes the ongoing financial capability of the club better. Access cheaper credit for stadium development and player acquisition/wages.

[David Hankey]

1 hour ago, indierich06 said:

Can all those people pontificating about how Top has 'lost interest' please give it a rest now?

Unfortunately, some will never be satisfied. They always have to have something to moan about.

[SemperEadem]

2 minutes ago, David Hankey said:

As I have said before on these boards if other Clubs had an owner like ours football wouldn't be in the parlous state it's in. Well done Top!!

No no no. Football clubs owned by billionaires is not some kind of way to hold up.

[FoxTalkFox]

Another incredibly generous gesture.

[FoxesWalk]

Just now, FosseSpark said:

Could mean he's selling and wants it to be more attractive. I don't think that's the case though. There must be a better rate we can access for finance arrangements if we have lower overall debt, so perhaps it makes the ongoing financial capability of the club better. Access cheaper credit for stadium development and player acquisition/wages.

Agree, don’t think he’s selling, this would suggest the opposite. He is in for the long haul. Given his connection to the club through his late father, I suspect Top will be around for a very long time. 

[Fox92]

46 minutes ago, Nicolo Barella said:

Think the reaction to this has been a bit blasé, I guess understandably considering Abramovich wiped out 3 billion for Chelsea, but still. £194 million. That's a shocking amount of money. He's just wiped it out

Indeed. People with that much money could do what they want. It's scary really.

[StriderHiryu]

55 minutes ago, StanSP said:

And it makes sense even more when you think about who's out of contract and who needs naturally moving on. Not to mention further income from the Maddison sale. 

 

This summer could be huge in terms of transfers. Not just in volume of players going out/coming in, but in terms of personnel. I'm glad we've got Glover in to identify the right targets. The signings of Kristiansen and Souttar make me think we're on the way to getting it right more than wrong again.

 

We know Soyuncu is out this summer. Amartey, Mendy, Tielemans and Evans all have contracts ending this summer. Not sure how much that takes off the wage bill but the latter 2 are going to be the biggest misses in terms of quality. 

 

We'll probably see Praet sold too, and hopefully Vestergaard/Bertrand. I've got a feeling Vardy may retire too... 

 

 

 

We will probably change the manager too, because it would be a good time to do so. 

 

This does seem to be the pattern for the club, a "renewal" of sorts every 4 or 5 seasons. The only exception was the year following the Premier League win, which sadly was the worst window we've ever had. 

[ThumbsUp]

1 hour ago, SemperEadem said:

Top himself has been at very few games for a quite a while now.

It's hardly surprising a guy who runs a duty free business in Thailand has been back running that business as China opens up from covid again. 

 

Most Thai tourism comes from China, and King Power is worth a lot more money than LCFC. 

[Guest TaggertvsWise]

2 hours ago, An Away Move said:

What might be the motivation to do this? - For those of us skeptical that it’s not just from the heart. 

Makes us a more sellable / attractive proposition. I am not a financial expert though so I could be wrong.

[CosbehFox]

Just now, TaggertvsWise said:

Makes us a more sellable / attractive proposition. I am not a financial expert though so I could be wrong.

My guess is with less debt our lending abilities are stronger - on the same day that the new stand has taken a step forward in planning - suggests they are ready to either lend themselves or from a bank the capital required 

[Guest TaggertvsWise]

This is a bold statement. It falls 1 of 2 ways for me. Yes we are here and here to commit & serve the club after questions of our financial ability to keep us competitive. Or, no debt, good squad, solid stadium, world class facilities, reduced wage bill… come and get it.

[SemperEadem]

5 minutes ago, ThumbsUp said:

It's hardly surprising a guy who runs a duty free business in Thailand has been back running that business as China opens up from covid again. 

 

Most Thai tourism comes from China, and King Power is worth a lot more money than LCFC. 

KP are so deep in the merky worlds of Thai politics that their monopoly i’m sure would be safe even with less toblerones sold.

[ThumbsUp]

5 minutes ago, SemperEadem said:

KP are so deep in the merky worlds of Thai politics that their monopoly i’m sure would be safe even with less toblerones sold.

Yeah they aren't going away but their value has reduced by 70% since covid. It's obviously a massive deal that tourism is starting up again. 

 

That's their entire business. You can't run a business with a bunch of shops that aren't even open. Unless you think they just generate income out of thin air?