LCFC financial questions - October 2023

[lnkstern]

I freely admit I do not know much about how the finances for major football clubs work, except that you need to have more income than outgo.

 

But I do have one general and a few more specific questions about the club's finances.

 

First, the general question:     Is the club ok, financially?

I've read about and watched so many stories of football clubs falling into financial difficulties, with some leading to dissolution of the club.  Of course I don't particularly fear any such situation for LCFC, but my general question still stands.

 

I do know a few things.  The club was paid £111 million by the EPL after last season despite being relegated.  The club was paid approximately £80 million for Barnes and Maddison.  The club did not pay any huge fees for the new players last summer. 

 

More specific questions:

 

Does the club's income match or exceed the outgo?

I suspect the answer is no, being in the Championship, after all.

 

Can the club survive, financially, if we don't gain promotion?

I assume there would have to be significant belt-tightening in this scenario.

 

Is the stadium expansion on hold, or proceeding?

To my mind, it would seem prudent to put the expansion on hold until we gain promotion.

 

Thanks in advance to any and all who choose to participate in this thread.

[Tommy G]

Yes 

[Scotch]

1 hour ago, lnkstern said:

I freely admit I do not know much about how the finances for major football clubs work, except that you need to have more income than outgo.

 

But I do have one general and a few more specific questions about the club's finances.

 

First, the general question:     Is the club ok, financially?

I've read about and watched so many stories of football clubs falling into financial difficulties, with some leading to dissolution of the club.  Of course I don't particularly fear any such situation for LCFC, but my general question still stands.

 

I do know a few things.  The club was paid £111 million by the EPL after last season despite being relegated.  The club was paid approximately £80 million for Barnes and Maddison.  The club did not pay any huge fees for the new players last summer. 

 

More specific questions:

 

Does the club's income match or exceed the outgo?

I suspect the answer is no, being in the Championship, after all.

 

Can the club survive, financially, if we don't gain promotion?

I assume there would have to be significant belt-tightening in this scenario.

 

Is the stadium expansion on hold, or proceeding?

To my mind, it would seem prudent to put the expansion on hold until we gain promotion.

 

Thanks in advance to any and all who choose to participate in this thread.

That would be an ecumenical matter. 

[smallpauldj]

1 minute ago, Scotch said:

That would be an ecumenical matter. 

Someone likes Father Ted 

[Hitesh]

[MPH]

5 hours ago, Scotch said:

That would be an ecumenical matter. 

 

DRINK!

[TrentFox]

Can’t think where else to put this, as the Cannon thread is closed …..  but we knowingly spent a considerable sum on a guy we knew was injured. Enzo yesterday said he is still ‘very far’ from playing. So, (tenuous link to thread title to justify rant), we are presumably awash with money 🥴

[AshbyBlue]

Top just spent another £2m at the horse auctions this week so dont think were short of a few bob.

[Clever Fox]

11 hours ago, lnkstern said:

I freely admit I do not know much about how the finances for major football clubs work, except that you need to have more income than outgo.

 

But I do have one general and a few more specific questions about the club's finances.

 

First, the general question:     Is the club ok, financially?

I've read about and watched so many stories of football clubs falling into financial difficulties, with some leading to dissolution of the club.  Of course I don't particularly fear any such situation for LCFC, but my general question still stands.

 

I do know a few things.  The club was paid £111 million by the EPL after last season despite being relegated.  The club was paid approximately £80 million for Barnes and Maddison.  The club did not pay any huge fees for the new players last summer. 

 

More specific questions:

 

Does the club's income match or exceed the outgo?

I suspect the answer is no, being in the Championship, after all.

 

Can the club survive, financially, if we don't gain promotion?

I assume there would have to be significant belt-tightening in this scenario.

 

Is the stadium expansion on hold, or proceeding?

To my mind, it would seem prudent to put the expansion on hold until we gain promotion.

 

Thanks in advance to any and all who choose to participate in this thread.

To try and answer your question seriously I'd say 

Relax the club is going nowhere but back to the Premiership.

That's the goal of the club and the Owners.

Not sure on balancing the books but on recent seasons no, Corrections were needed steady the ship and satisfy FFP.

Financially, we are doing ok since relegation. We'll get another 100+ from the premiership this season even if we don't go up. And we still have saleable players if needed. Unlike most clubs in this league.

The club has also raised capital against some of the long term income from player sales by selling those committments up front.

So the Answer is yes we can survive even if we don't get promoted.

In Susan Whelan we have one of the most astute and respected people in Finance running both the Club and the Company.

She's the one driving the success financially. KP are reported to be back up to pre pandemic sales figures in the Duty free business.

Aside from the long term committments like Seagrave and Stadium expansion. The club has little debt relative to other Clubs.

I'm sure some on hear can shed more light on the figures involved than I can.

 

The Stadium expansion is going ahead to my knowledge and the finance for it is in place.

It's held up currently by the Council Faffing around over detail, but have given the go ahead in principle.

Don't forget the other commercial developments around the stadium which will bring in considerable income also when completed. All of which could be 2 to 5 years away.

For me personally the one thing I worry about is the loss of Vichai RIP  in that awful crash.

Pre crash Vichai owned everything and so could make decisions himself. Like writing off the Clubs Debt or Donating millions to the local Hospital etc 

Now it's a Board of Directors running things of which Top is answerable too.

That's a big change, And as we know Directors disagree all the time in Companies. Ego's etc get in the way and the company sufferes.

For now though I understand the goal is to carry on Vichai's wishes and finish what he and Top started, That's to make Leicester City great and a big Club. To their credit they've done an excellent job so far, even with a few bumps along the way. Which I believe we've learnt from.

A League Title and an FA Cup win is not to be taken lightly against the system and the big clubs.

 

As to the future, who knows, such is life. For the next 10 years or so I don't think we are going anywhere but up in the  World as a Club. Our status continues to rise and we're winning over new Fans from all over the World.

Enjoy the Games and the Season and roll with it.

Onwards and Upwards we go.

 

[Foxmeister]

What I've never understood is how they've made so much money selling cheap fags. My mate Ron has been doing it since he left school 40 years ago and drives an 03 plate Mondeo.

[st albans fox]

8 hours ago, AshbyBlue said:

Top just spent another £2m at the horse auctions this week so dont think were short of a few bob.

That’s not a lot on horses 

I suspect the family want to win a classic (uk, Irish or French) to dedicate to Kuhn vichai’s memory 

[Babylon]

18 hours ago, lnkstern said:

I freely admit I do not know much about how the finances for major football clubs work, except that you need to have more income than outgo.

 

But I do have one general and a few more specific questions about the club's finances.

 

First, the general question:     Is the club ok, financially?

I've read about and watched so many stories of football clubs falling into financial difficulties, with some leading to dissolution of the club.  Of course I don't particularly fear any such situation for LCFC, but my general question still stands.

 

I do know a few things.  The club was paid £111 million by the EPL after last season despite being relegated.  The club was paid approximately £80 million for Barnes and Maddison.  The club did not pay any huge fees for the new players last summer. 

 

More specific questions:

 

Does the club's income match or exceed the outgo?

I suspect the answer is no, being in the Championship, after all.

 

Can the club survive, financially, if we don't gain promotion?

I assume there would have to be significant belt-tightening in this scenario.

 

Is the stadium expansion on hold, or proceeding?

To my mind, it would seem prudent to put the expansion on hold until we gain promotion.

 

Thanks in advance to any and all who choose to participate in this thread.

That £111 million is gone, whilst the money doesn't come in until the end of the season, it's used up on wages etc during the season. 

 

Point 1: Our outgoings will exceed outgoings. (If we don't include sales, with them, nobody knows). 

 

Point 2: We have a huge number of players on good money out of contract at the end of the season. That's a big help financially, realistically it comes down to Kingpower and their appetite for taking on short term debt to cover losses whilst we get them under control and probably end up getting sanctions. 

 

Point 3: They've not said, but it will be on hold.