Financial implications of relegation?

[Babylon]

59 minutes ago, turlo said:

The existing loans against guaranteed TV revenue are covered by this seasons EPL TV money that we recieve at the end of the season. 

Not really as that’s all used to run the club, we don’t have a surplus.

[EnderbyFox]

Never fear - I'm sure we can bring in some much needed funds from renting out our state of the art training facility to newly promoted Coventry, not like we'll be needing anything fancy for the next few years anyway

[davieG]

25 minutes ago, Sol thewall Bamba said:

Haven't we got something looming over us from when we got promoted?

 

Not sure a lot realise how bad things are going to get for us financially. 

 

27 minutes ago, ClaphamFox said:

We sorted out our previous issues, but I can’t see them being lenient with us if we breach again.

I was thinking more about what are the equivalent FFP rules for spending in the Championship?

[Ely fox]

2 minutes ago, EnderbyFox said:

Never fear - I'm sure we can bring in some much needed funds from renting out our state of the art training facility to newly promoted Coventry, not like we'll be needing anything fancy for the next few years anyway

Or a posh Air B and B on weekends?

[GingerrrFox]

I’d expect the clubs employee list to halve. The likes of marketing will be shitting themselves, that’s an area that will see a big cull initially. They will probably get the women’s team into Seagrave in the near future so they can minimise grounds upkeep costs. Our saving grace is that we do still have some assets under contract despite having no bollocks for a relegation fight, people will pay for the likes of Maddison and Barnes. Really though we need to go back up next season because if we don’t that’s when the rot sets in and you are anchored into the league as budgets start to decrease. 

[lgfualol]

We're just going to have to sell everyone and rebuild with the aim of staying in the championship right? 

 

Biggest question mark is Seagrave. Imagine having that ground and a bunch of cheap championship plodders training in it. Shocking.

[SemperEadem]

Seagrave absolute vanity project. 

[Zear0]

Just now, SemperEadem said:

Seagrave absolute vanity project. 

Nice golf course though...

[Ely fox]

Leicester City v Rotherham next season. 

[Babylon]

31 minutes ago, Tuna said:

I think it was explained on here that MacQuarrie take the parachute payments in lieu of TV money can anyone confirm this is correct who knows about this stuff?

It’s just secured against it, like your mortgage is secured against your house. Don’t pay and they’ll take it away, we can pay them however we see fit… we could refinance, we could see KP take on the loans themselves. 
 

I really wouldn’t panic about it at this time, people think securing the loan against tv money means ALL of that money, it doesn’t, it’s a fraction of it. 
 

Of the £267m debt in last accounts they wiped out £200m of it. Taking over the loan from the bank is chump change in comparison…. So it’s entirely so to to KP’s stomach for more losses.

[st albans fox]

1 minute ago, Ely fox said:

Leicester City v Rotherham next season. 

I appreciate your post isnt meant in an arrogant way but I believe it’s this attitude within the club which lead to the performances we’ve seen against Bournemouth and Fulham 

[Babylon]

4 minutes ago, SemperEadem said:

Seagrave absolute vanity project. 

Yea we could have let Rodger’s spend £100m on more shite instead and have nothing to show for it. 

[Raj]

in all seriousness alot of people will be made redundant as the infrastructure is set up for Premier league football.

If your work loses a big contract the repercussions will be obvious.

This will be the same at LCFC

[st albans fox]

Just now, Babylon said:

It’s just secured against it, like your mortgage is secured against your house. Don’t pay and they’ll take it away, we can pay them however we see fit… we could refinance, we could see KP take on the loans themselves. 
 

I really wouldn’t panic about it at this time, people think securing the loan against tv money means ALL of that money, it doesn’t, it’s a fraction of it. 
 

Of the £267m debt in last accounts they wiped out £200m of it. Taking over the loan from the bank is chump change in comparison…. So it’s entirely so to to KP’s stomach for more losses.

Having been educated yesterday that Percy wrote last month that the players who aren’t sold have a 35/50% salary reduction in their contracts, I’m fairly relaxed that we will retain a decent squad and should be good enough to bounce back. But the coach appointment is the vital part of this and we have to get that right. 

[MattFox]

47 minutes ago, StevieH said:

Very harsh I'm afraid with what he has done for the club over the last 10 years. Get a grip. Players not giving a shite doesn't help!

Not sure how this is harsh

 

He’s mortgaged the club to the eyeballs based on staying in the premier league

[Clarkey123]

I was glad to see Top there yesterday, looking glum and worried in the stands, contemplating the millions of losses he’s about to accumulate. It’s nice to see that he shows up regularly now and seems to care a lot more.

Edited 9 May 2023 by Clarkey123

[SK3Blue]

22 minutes ago, Clarkey123 said:

I was glad to see Top there yesterday, looking glum and worried in the stands, contemplating the millions of losses he’s about to accumulate. It’s nice to see that he shows up regularly now and seems to care a lot more.

Turned up now the horse has already bolted.

Edited 9 May 2023 by SK3Blue

[Daggers]

1 hour ago, StevieH said:

Very harsh I'm afraid with what he has done for the club over the last 10 years. Get a grip. Players not giving a shite doesn't help!

Explain then, how has Top cemented our future?

 

If he were to be whisked away in a space ship this morning, how much better a club do you think he’s leaving behind?

 

*point of note: I’m talking about the LCFC with barely any players left in its squad and crippling loans taken out against payments we aren’t going to receive to build a fantasy no one wanted

[Chelmofox]

6 minutes ago, SK3Blue said:

Turned up now the horse has already bolted.

In fairness - he employed other people to run this. They are the ones that failed him and he needs to show them a ruthless streak.

[Babylon]

43 minutes ago, st albans fox said:

Having been educated yesterday that Percy wrote last month that the players who aren’t sold have a 35/50% salary reduction in their contracts, I’m fairly relaxed that we will retain a decent squad and should be good enough to bounce back. But the coach appointment is the vital part of this and we have to get that right. 

Whist certain players aren’t good enough for this league (at least at the moment) There is a core there with a few additions that could be more than good enough.

[StanSP]

Have any other clubs had to have firesales after being relegated in similar predicaments? Loans out against future income which now isn't there? 

 

I know some of the key players will indefinitely go - Maddison, Youri, Barnes, Iheanacho, Soyuncu, Castagne. And I know the squad is due a major overhaul anyway, but what other clubs in the recent past have had to sell 8/9 players (perhaps more?) to recover in the Championship after relegation? 

[JimmyC74]

One of the issues will be if we have to go long into the window to get our target transfer fees for Madders and Barnes before we can bring players in. 
 

you can expect the likes of Newcastle to test the water with lowball offers.

[Tommy G]

1 hour ago, Costock_Fox said:

Recon the implications are we are utterly ****ed with the Macquary loans taking our parachute payments and therefore the rebuild will happen off of player sales.

 

Maddison- £45/50m

Barnes- £40m

Iheanacho £25m

Castagne- £20m

Daka- £10m

Ndidi- £5m

 

We will need to bounce straight back.

 

Would like to see us try to get Amad from Man U if Sunderland don’t go up, would probably be a loan and that sort of signing should be the route we take.

Ndidi is w*ank but he will fetch more than £5m!

[Babylon]

13 minutes ago, StanSP said:

Have any other clubs had to have firesales after being relegated in similar predicaments? Loans out against future income which now isn't there? 

 

I know some of the key players will indefinitely go - Maddison, Youri, Barnes, Iheanacho, Soyuncu, Castagne. And I know the squad is due a major overhaul anyway, but what other clubs in the recent past have had to sell 8/9 players (perhaps more?) to recover in the Championship after relegation? 

Our net debt compared to many teams going down isn’t that bad, it’s was mostly written off by KP. 
 

The money isn’t owed all at once, we could refinance, KP could take it on.

 

This notion that the bank take all our parachute payments and we are left with nothing is a fallacy.

 

Leeds and Saints from what I can see have a very similar amount of debt. 

[An Away Move]

2 hours ago, AjcW said:

Would assume FBS are going to be pretty cheesed off that their big money sponsorship deal will now be in the championship... wonder if they have a break clause.

I hope so. Dodgiest sponsor we’ve ever had. Over 70% of their customers lose their money ‘investing’ (gambling). I haven’t bought a shirt since they came on board out of principle.