Does anyone actually know anything about the finances?

[Paninistickers]

Just now, Qwerty said:

Yes but some people say they won’t need to be paid back yet.  Apparently they didn’t recall Burnley’s debt when they were relegated.  That’s why I’m wondering if there is anyone on here with inside information.

The loan is secured against the parachute. Which means we can pay off Macquarie privately (ie Tios own pocket) or take out another loan (but secured against what?) or we have to seek a new investor who pays the loan

 

There isn't another answer.

[orangecity23]

Yeah, but we've avoided that UEFA FFP that could have given us a problem if we qualified for Europe. Genius! Another round of champagne for the boardroom.

 

Exclusive behind the scenes footage of the planning for next season:

 

[turlo]

3 minutes ago, moore_94 said:

Unless you had specific knowledge and worked for the club there isn't likely to be anyone who could definitively say how our finances our.

 

Even Keiran Maguire has to make his own assumptions on the current situation of the club based on the accounts of the club that ended in May 2022.

Yep, Maguire has said he has no idea of the current value of loans we've taken out against future TV money earnings, as like the rest of us he can only go by what was released in the last set of accounts, which are a year out of date. Not sure where the experts in our fan base who claim we've already spent our parachute payments for the next 3 year get their information from...

[MattFox]

Our finance director jumped ship the other week

 

not a great sign

[turlo]

3 minutes ago, MattFox said:

Our finance director jumped ship the other week

 

not a great sign

He's likely the one who signed off the silly contracts we've been dishing out and the massive overspend on wages, which crippled our ability to bring new players in last summer. Good riddence to him !

[foxes4life]

16 minutes ago, Bluearmyfox28 said:

How does FFP work in the championship? May sound stupid but is it the same as the premier league?

No, they actually enforce it in the championship and hand out punishments.  

[Sly]

28 minutes ago, moore_94 said:

Unless you had specific knowledge and worked for the club there isn't likely to be anyone who could definitively say how our finances our.

 

Even Keiran Maguire has to make his own assumptions on the current situation of the club based on the accounts of the club that ended in May 2022.

Accounts can also be manipulated.

 

It will largely depend on how the sales go.

 

Largely speaking, the wages we save by losing Tielemans, Soyuncu, Bertrand, Amartey, Mendy, Evans etc should offset the weekly loan payments.

 

We owe nothing to King Power anymore.

 

We will sell off Ndidi, Iheanacho, Barnes, Maddison, Castagne and maybe Praet / Vestergaard for something in the region of £80m and that will be used for the rebuild. 

 

Alves and Braybrook will come into the squad most likely once got, Justin might leave in January, once he’s semi fit and back to his regular self. 
 

Vardy should retire.
 

We’re set for a major rebuild and that starts with the new head coach. 
 

For that to be done, we’ll need the board so sort their shit out. 
 

 

[urban.spaceman]

1 hour ago, moore_94 said:

How has our Financial Director bagged himself a job at Newcastle 

 

https://www.telegraph.co.uk/football/2023/05/28/complacency-leicester-relegated-premier-league/

 

Departures will not just be on the field, but off it. Simon Capper, the club’s financial director, has accepted a position at Newcastle United. Capper has been crucial over the past 12 months in handling Leicester’s finances following record pre-tax losses of £92.5 million. 

Can't blame him for going there - he'll be allowed to cheat till his heart's content.

[Mickyblueeyes]

1 minute ago, urban.spaceman said:

Can't blame him for going there - he'll be allowed to cheat till his heart's content.

He has got good practice here

[Blue ROI]

1 hour ago, foxes4life said:

No, they actually enforce it in the championship and hand out punishments.  

Aren't we lucky we've got such a steady hand at board level who prepared for such an eventuality and wouldn't do something idiotic like keep a busted flush in charge until it was too late?

 

And have us in some competition a week before the league starts

 

[coolhandfox]

1 hour ago, Paninistickers said:

We're earn 210m a year at the moment and we're on the edge. 

 

Income falls to zero next season, as we have spent parachute money. We.maybe will recoup 100m in okayer sales and reduce wages by 20m or so..Still leaves an 80m shortfall 

Wages will reduce by more then 20m Evan and Maddsion are on 100k + a week which is 10m + on their own.

 

Just the 8 players out of contract will be 20m. 

 

We will not be pay a manager Rodgers type money which was over 5m. 

 

Al the new signing had relegation clauses in there contracts.

[HitchinFox]

1 hour ago, Paninistickers said:

The Macquarie loans are on public record. 

But those were an advance so we could spend the Fofana money? No? So +/- zero on those? Perhaps bar interest, which is manageable? 

[Paninistickers]

1 minute ago, HitchinFox said:

But those were an advance so we could spend the Fofana money? No? So +/- zero on those? Perhaps bar interest, which is manageable? 

Nope. We had Macquarie loans on parachutes, on Mahrez, on Fofana.

 

The club has been thirsting after cash for years. Why? Because its clear they hadn't got any. 

 

I deduct from that that large parts of the KP billions is just theoretical. The actual, real, hard, liquidised cash was never there. It's an empire (again, this is guesswork) based on theoretical value 

[st albans fox]

The bank won’t enforce loan repayments that may inhibit our ability to bounce back because that’s not in their best interest. They want us back in the prem asap 

 

however, if we don’t bounce back then things could become v difficult indeed 

Edited 28 May 2023 by st albans fox

[BigGibbo]

We were about to fall foul of FFP with Premier League money.

 

We went down with the 7th highest wage budget in the Premier League.

 

We have a load of deadwood on Champions League wages that we won't be able to get rid of.

 

FFP is actually properly enforced in the Championship.

 

You do the math.

[SheppyFox]

We’ve never been Arab oil money rich anyway.

[Paninistickers]

3 minutes ago, st albans fox said:

The bank won’t enforce loan repayments that may inhibit our ability to bounce back because that’s not in their best interest. They want us back in the prem asap 

 

however, if we don’t bounce back then things could become v difficult indeed 

If Macquarie choose to waive the laon repayment date, then what do we offer as collateral? 

 

Macquarie isn't a conventional loan. It's invoice finance. Factoring. There's a distinct difference between that and a repayment loan. 

 

It's seriously bad news.

[HitchinFox]

8 minutes ago, Paninistickers said:

Nope. We had Macquarie loans on parachutes, on Mahrez, on Fofana.

 

The club has been thirsting after cash for years. Why? Because its clear they hadn't got any. 

 

I deduct from that that large parts of the KP billions is just theoretical. The actual, real, hard, liquidised cash was never there. It's an empire (again, this is guesswork) based on theoretical value 

But loans have to be paid back - and we seem to be servicing them just fine, or we'd be in administration (or worse). 

 

Businesses take loans for a number of reasons. Including to get cashflow going and to secure advances when they know there is guaranteed income in the pipeline. Corporate financing is an extremely complex area.

 

I know we haven't spent money on players - and the lack of investment in on-pitch staff is partly why we're where we are. But I genuinely haven't seen anything in the public domain that suggest LCFC or King Power are financially ****ed. 

 

If someone has inside knowledge then that's fair enough. 

[urban.spaceman]

Part of me wants Top to just say **** IT and financially dope us in the same way that Man City and Newcastle have.

 

We tried playing fair and by the rules and this is how it ended up.

 

So let's ****ing go for it. Join the Axis of Evil. We're ****ing owed.

[Paninistickers]

Just now, HitchinFox said:

But loans have to be paid back - and we seem to be servicing them just fine, or we'd be in administration (or worse). 

 

Businesses take loans for a number of reasons. Including to get cashflow going and to secure advances when they know there is guaranteed income in the pipeline. Corporate financing is an extremely complex area.

 

I know we haven't spent money on players - and the lack of investment in on-pitch staff is partly why we're where we are. But I genuinely haven't seen anything in the public domain that suggest LCFC or King Power are financially ****ed. 

 

If someone has inside knowledge then that's fair enough. 

See my previous post. There is no servicing of the Macquarie loan. It's an advance based on gauranteed money. A payday loan. There's no replayment schedule. The club simply assign the Parachute money to Macquarie Bank's 'sort code and account number'

[st albans fox]

21 minutes ago, Paninistickers said:

If Macquarie choose to waive the laon repayment date, then what do we offer as collateral? 

 

Macquarie isn't a conventional loan. It's invoice finance. Factoring. There's a distinct difference between that and a repayment loan. 

 

It's seriously bad news.

We have assets that we can sell end next season. I would expect them to restructure the amounts into a conventional loan (which king power will guarantee ) . As I said, not bouncing back will be a huge problem. 

[HitchinFox]

6 minutes ago, Paninistickers said:

See my previous post. There is no servicing of the Macquarie loan. It's an advance based on gauranteed money. A payday loan. There's no replayment schedule. The club simply assign the Parachute money to Macquarie Bank's 'sort code and account number'

 

Not sure that's accurate. But even if it is, I don't think our debts or loans are an issue as they've been secured against something we will have - like you said. 

 

The dip in income following relegation, however, will be, if we don't bounce straight back. That's the real worry. 

[st albans fox]

10 minutes ago, urban.spaceman said:

Part of me wants Top to just say **** IT and financially dope us in the same way that Man City and Newcastle have.

 

We tried playing fair and by the rules and this is how it ended up.

 

So let's ****ing go for it. Join the Axis of Evil. We're ****ing owed.

We can’t in the championship - they will enforce ffp (especially after last time) 

[urban.spaceman]

Just now, st albans fox said:

We can’t in the championship - they will enforce ffp (especially after last time) 

The last time has already been settled and we have been fully vindicated. Kinda want Top to go fully evil and sue the ***** into oblivion.

[st albans fox]

1 minute ago, urban.spaceman said:

The last time has already been settled and we have been fully vindicated. Kinda want Top to go fully evil and sue the ***** into oblivion.

Yes I know we settled but you’re not getting much rope when you’ve got a record …