King Power Writes Off Entire Club Debt

[Finnegan]

Just now, ThumbsUp said:

Unless you think

 

Don't be ridiculous. 

[ScrumpyJack]

Go on lad!

 

A lot of the anti-Top sentiment showed how fickle some fans have become. 

[ronnup]

Selling ?

[phoneticerror]

Just now, ronnup said:

Selling ?

That was my immediate first thought. We’ll have to wait and see. Either way, pretty good news that the debt is sorted.

[Tommy G]

This will be gutting news for the anti KP brigade 

[Spudulike]

It would be very attractive to potential buyers if it came up for sale given that it comes with a large chunk of land with planning permission for expansion, arena, hotel, residential etc. There must be eyes looking at this. 

[Tommy G]

56 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? 

Yes but that could easily be wrote into an SPA that the loans with king power group aren’t repayable as part of the potential deal. It’s a non issue.

[Tommy G]

2 hours ago, surrifox said:

I'm guessing there were some hard decisions to be made in the parent company as to whether the £190m debt due by the club  was in fact recoverable/ collectible from the club's assets or should need to be provided against as a possible bad debt in the holding company . Converting the debt into equity gives the club a stronger capital base and can then be shown as an investment by KP and lowers the gearing  . The interest on the debt would be a big burden for the club to service in any case .

I can’t be arsed to look at the notes to the accounts but the interest on I/co debt was probably accruing and not settled in cash anyway. May not have been allowed to be settled ahead of ordinary debt servicing costs I suspect, as part of the covenant structure around that debt. 

[TJQuik]

A thread full of people who think the primary motivation for a businessman isn't profit seeking and protecting his assets. Sorry but there is no "gratitude" necessary here, it happens to benefit the club in terms of signings but that also benefits him. Some of you think of KP as Mr Chips if he won the lottery.

[StanSP]

3 minutes ago, TJQuik said:

A thread full of people who think the primary motivation for a businessman isn't profit seeking and protecting his assets. Sorry but there is no "gratitude" necessary here, it happens to benefit the club in terms of signings but that also benefits him. Some of you think of KP as Mr Chips if he won the lottery.

Yes, we apologise for being happy our club has much less debt to its name. 

[Tommy G]

6 minutes ago, TJQuik said:

A thread full of people who think the primary motivation for a businessman isn't profit seeking and protecting his assets. Sorry but there is no "gratitude" necessary here, it happens to benefit the club in terms of signings but that also benefits him. Some of you think of KP as Mr Chips if he won the lottery.

TJ - no businessman in their right mind would profit seek out of a football club, the only exception being probably Mike Ashley and the Glazers - the latter have MU floated on the NYSE so have a few more available ways to extract cash.
 

They only really make their money on exit - along the journey they have to pump significant cash in with the risk this may not work and have to sell at a loss (relegation for example) in the future you might see the headline “LCFC sold for £400m” yes as the sole shareholder Top will walk away with a £400m wedge, but the past 10-15 years KP have probably had to pump similar amounts of cash in (don’t quote me these are fag packet figures) 

 

If you want to make some serious wedge stay away from football clubs. 

[StriderHiryu]

Even if Top is looking to sell, clearing the debt makes the club more attractive to potential buyers. Leicester City Football Club has a LOT going for it and we'd fetch a fair chunk. Of course the devil is in the detail, and most owners these days are awful. But I suspect that if we were purchased, it would be by people with a lot of ambition. Clubs like Man U and Liverpool are already at the Zenith of their commercial power barring the advent of the Super League, which is why they are both for sale. Leicester City, taking this season out of the equation are an upwardly mobile club with a track record of recent success. 

[lifted*fox]

Top could bend over, drop his pants and reveal a tattoo around his arsehole that says IM C-O-MMITTED TO LCFC and people on here will still come up with some absolute nonsense reason why he's selling or seemingly not bothered.

 

 

[TJQuik]

6 minutes ago, StanSP said:

Yes, we apologise for being happy our club has much less debt to its name. 

They've not done this as an act of charity, they've accepted that this won't be paid off so they've taken it off our hands to make room for transfer activity. You can be happy about it but it's silly to see people thinking this is an act of charity.

[Babylon]

2 hours ago, Gunnlaugson's Rizlas said:

If he’s truly committed we can surely pull a Chelsea and put in some mad bids in the next window now the slate is clean. Expecting the full Boehly bonanza in the summer. 
 

Otherwise it’s full pessimism and he’s just doing this to make an easy sale. 

It's not. 

[lifted*fox]

24 minutes ago, Tommy G said:

This will be gutting news for the anti KP brigade 

 

hE DOeSnT cArE AnYmOrE

[Babylon]

16 minutes ago, TJQuik said:

A thread full of people who think the primary motivation for a businessman isn't profit seeking and protecting his assets. Sorry but there is no "gratitude" necessary here, it happens to benefit the club in terms of signings but that also benefits him. Some of you think of KP as Mr Chips if he won the lottery.

He could recover far more profit by leaving it on the books and taking interest payments. They could have left the debt there for decades, long after they have gone, as many other owners have done. 

So I think you're doing them a disservice here.

[Happy Fox]

Reckon Levy and some other investor will take over in the summer.

[turtmcfly]

3 minutes ago, lifted*fox said:

Top could bend over, drop his pants and reveal a tattoo around his arsehole that says IM C-O-MMITTED TO LCFC and people on here will still come up with some absolute nonsense reason why he's selling or seemingly not bothered.

 

3 letters on the left arse cheek. 15 on the other. "He's moaning that we've paid too much for Tete"

[kingkisnorbo]

I wonder what this means in the bigger picture. Preparing to sell? Seems that many are looking to cash in.  

[Master Fox]

Maybe he wants to reintroduce the Clappers again. Two cupcakes instead of one at the next home game? 
 

He’s taken out a cheeky £200 million personal loan for clappers. 

Edited 1 February 2023 by Master Fox

[Fox92]

10 minutes ago, lifted*fox said:

Top could bend over, drop his pants and reveal a tattoo around his arsehole that says IM C-O-MMITTED TO LCFC and people on here will still come up with some absolute nonsense reason why he's selling or seemingly not bothered.

 

 

That's true but also works the other way. He could do anything and the same people wouldn't criticise him.

[CosbehFox]

44 minutes ago, ThumbsUp said:

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? 

I’d be amazed if they didn’t have some form of property portfolio (if only for a rainy day) 

[Le Renard]

Well I think it has put the rumour to bed that Kingpower were selling in the short to medium term.   It doesn't make financial sense to wipe out the debt owed to them and then sell the club.  

[SecretPro]

Just seen the KP up on Rightmove.