King Power Out

[teblin]

I asked a question a few months ago.

 

Are they incompetent?  (think we can agree yes here)

Do they just not care? (starting to think its the case)

 

I am starting to think they are just a bit stupid, or in denial or something.

 

Very worrying times. 

 

[Grebfromgrebland]

With players sales and players leaving we must be getting closer to balancing the books now. No point looking at last years figures of wages as most of the high earners are off the books now.

 

Whether we have a squad which will be competitive in League 1 remains to be seen though.

[Pliskin]

14 minutes ago, teblin said:

I asked a question a few months ago.

 

Are they incompetent?  (think we can agree yes here)

Do they just not care? (starting to think its the case)

 

I am starting to think they are just a bit stupid, or in denial or something.

 

Very worrying times. 

 

They’re definitely lacking intelligence when it comes to running a business….. Top is no longer an active park of the head of King Power, and Rudkin is essentially trolley boy becoming manager. Rudkin has absolutely no business making the decisions that he does. 

[RonnieTodger]

How many of the Facebook army have even heard of Macquarie or Kieran Maguire?

[Pliskin]

4 minutes ago, Grebfromgrebland said:

With players sales and players leaving we must be getting closer to balancing the books now. No point looking at last years figures of wages as most of the high earners are off the books now.

 

Whether we have a squad which will be competitive in League 1 remains to be seen though.

We’re nowhere near, we’ve debts up to our eyeballs, unpaid fees for PL players and outstanding loans for PL football, and we’re now operating in a league where £12m is the average turn over in one season. 
 

It’s why we can’t sign any players for a fee, we can’t spend anything because we owe more money than we have. 
 

It’s why king power are now desperately trying to sell, because we’re hurtling to none existence. 

Edited 16 hours ago by Pliskin

[Vlad the Fox]

3 minutes ago, RonnieTodger said:

How many of the Facebook army have even heard of Macquarie or Kieran Maguire?

Probably think it’s some bloke called Kieran Macquarie whose lent them the money.

[funkyrobot]

13 hours ago, adam said:

Tick tock

 

 

This is a snapshot of where we were a year ago and I do think Maguire highlights the negatives for clicks, likes and maximum exposure of those clubs that will push more traffic to maximise his income through social media/podcast/interview work. He focuses on the negatives and when he does have to explain positive changes he will always counter with a negative. He continually lights the touch paper and stands back without ever giving quite the full picture and without ever fully understanding an up to date position. It’s good that he highlights club mismanagement but remembering why he posts this stuff is useful. He offers little in the way of additional comments when fans, pessimistic fans or gleeful opposition fans speculate on the future of the club.

Edited 16 hours ago by funkyrobot

[Filberts lovechild]

We’ll be lucky to have a functioning club in the next 2 years basically.

[FoxFossil]

More than £10m a year, every year, on interest @8%. Bet there are early repayment charges too. Unpaid transfer fees, and how long before HMRC come knocking?

Aren't KPFC illegally trading as LCFC doesn't look to be a 'going concern' in L1?

[Chelmofox]

3 hours ago, LCFCJohn said:

All this finance stuff in football is just beyond me, I know others have a better handle on it.

 

In terms of new ownership, we might well be beyond saving anyway, and new ownership might have to come with administration and rebuilding.

 

But as a general point about new ownership,  I wouldn’t say being excessively rich (in football terms) is the exciting bit. The reason for feeling positive and excited will hopefully be getting someone who has a clue how to run the club sensible and sustainably. 
 

I see it as, the better you can run the club in the first place, the less money it costs.

 

Whether this is right I don’t know, but I looked up the relative wealth of the following;

 

KP - £2.7-£3 billion

Tony Bloom - £1-£1.3 billion

Matthew Benham - £200-£250 million

 

As I say, how correct these are I don’t know but I’d say if likely is quite accurate in terms of KP being worth the most and by some way. And the fact Benham is sustaining a PL club is amazing really. 
 

So year, regardless of wealth, you need a smart owner. And we have the thickest and most clueless owner in the entire English league system!

Yeah - i agree. But anyone smart is going to go through our finances and really think hard before going near us, when there are countless better things to spend your money on (or guarantee your stock against).  The days of just being able to wipe everything out with cash and everything being alright are long gone. The club cannot sustain itself in it current position, so anyone smart is going to have to make decisions that a lot of us arent going to like.

[HarryTheGenie]

12 hours ago, VLC86 said:

I’d imagine we would sell the training ground and stadium independently if it got to that stage but honestly, who truly knows what is next.

The training ground would have one potential buyer, it would be worth nearer £15-20m rather than the £100m we paid for it. The fact they aren't using it to make money to offset its cost (something that Man City does successfully) and still keep it like Fort Knox is baffling.

 

Who is buying the stadium if we go/are going bust? It's a poorly built flat pack football ground, the Tigers wouldn't want it and no other football clubs would relocate to it, it's not structurally sound enough to hold music concerts. It's yet another white elephant.

[Sol thewall Bamba]

14 minutes ago, FoxFossil said:

More than £10m a year, every year, on interest @8%. Bet there are early repayment charges too. Unpaid transfer fees, and how long before HMRC come knocking?

Aren't KPFC illegally trading as LCFC doesn't look to be a 'going concern' in L1?

The interest we incur on our loans are 500% of the TV money we currently receive.

 

This only ends one way, it's crazy that basically no one is bothered.

[Chelmofox]

Not trivialising it, but i presume unpaid transfer fees are those where the structure of deals arent where everything is paid up front? I think this is quite common today?

 

Of course, makes a double relegation more horrific knowing you have to pay the rest of Skipp in L1, in a division he looks like he isn't even fit for.

[Officer Doofy]

38 minutes ago, funkyrobot said:

This is a snapshot of where we were a year ago and I do think Maguire highlights the negatives for clicks, likes and maximum exposure of those clubs that will push more traffic to maximise his income through social media/podcast/interview work. He focuses on the negatives and when he does have to explain positive changes he will always counter with a negative. He continually lights the touch paper and stands back without ever giving quite the full picture and without ever fully understanding an up to date position. It’s good that he highlights club mismanagement but remembering why he posts this stuff is useful. He offers little in the way of additional comments when fans, pessimistic fans or gleeful opposition fans speculate on the future of the club.

Can you highlight the positives that he's leaving out?

[AKCJ]

These Kieran Maguire tweets should send shivers down every City fan's back and make any pro-King Power fan absolutely ashamed.

[Mapperleyfox]

Enjoy the football while you can. I'm no football finance expert but the unsustainable numbers being talked about all seem to point towards the club ceasing to exist pretty soon unless something dramatic happens. We are likely to be the first major club to go bust and there's no coming back once we're gone. I cannot articulate how angry I am that not only have KP mismanaged us, but we don't even have any assets or a decent team to show for it. And some clowns still defend them???!

 

King Power have destroyed 130 odd years of proud history. No wonder they want an exit - they're trying to sell and get out as quickly as possible so they can hide away back in Thailand and forget we ever happened, without being held accountable.

 

If any of the owners or Rudkin dare show their faces at the ground going forwards they need to be made very clear they are not welcome. If that means intimidation (not violence) then so be it. We are Sheff Weds mark 2 if we're even lucky enough to survive.

[Tommy G]

1 hour ago, RonnieTodger said:

How many of the Facebook army have even heard of Macquarie or Kieran Maguire?

Probably think they are both relations of Harry Maguire 

[CosbehFox]

1 hour ago, Sol thewall Bamba said:

The interest we incur on our loans are 500% of the TV money we currently receive.

 

This only ends one way, it's crazy that basically no one is bothered.

We are bothered but it’s not the largest percentage of us at all. Plenty of us told we’ve been ungrateful and the club is absolutely running out of cash 

[SK3Blue]

Plenty of posts regarding the loans at the time suggesting this was normal football business, but there was more to it. 
 

Making daft decisions like selling KDH for 30m, letting Chelsea pay it in instalments and taking out a loan using the instalment money to pay it back is just insane and reeks of desperation. Signing Skipp and Winks for a combined 35m with the loan money even more incredible. 
 

How are they not in Administration!?

[CosbehFox]

1 hour ago, funkyrobot said:

This is a snapshot of where we were a year ago and I do think Maguire highlights the negatives for clicks, likes and maximum exposure of those clubs that will push more traffic to maximise his income through social media/podcast/interview work. He focuses on the negatives and when he does have to explain positive changes he will always counter with a negative. He continually lights the touch paper and stands back without ever giving quite the full picture and without ever fully understanding an up to date position. It’s good that he highlights club mismanagement but remembering why he posts this stuff is useful. He offers little in the way of additional comments when fans, pessimistic fans or gleeful opposition fans speculate on the future of the club.

Yes. Two things. He can’t speculate on the future because he’s working behind on the confirmed finances. He can’t do what that twat Borson does and speculate without foundation or on a projection.
 

And the future is probably more negative. Wage bill reduced, transfer fees in but a lower division with less incoming money, no TV deal of notable income, smallest parachute payment/going to run out because it’s been forwarded funded. Seagrave costs increase too with upwards cost of living. The assets to milk are running out. 
 

The club are running out of cash and don’t anything else to put for a loan. Maguire can’t say that but that’s the future foreseen. Even if we are promoted, we no longer have a parachute payment, the wage bill has to crash again, we have to sell again 

[CosbehFox]

1 minute ago, SK3Blue said:

Plenty of posts regarding the loans at the time suggesting this was normal football business, but there was more to it. 
 

Making daft decisions like selling KDH for 30m, letting Chelsea pay it in instalments and taking out a loan using the instalment money to pay it back is just insane and reeks of desperation. Signing Skipp and Winks for a combined 35m with the loan money even more incredible. 
 

How are they not in Administration!?

It is normal practice, half of the Premier League does it. When we were in that position it works perfectly fine.
 

When we got relegated under Rodgers, that was the time to step away from it and sort the wage bill out. But they continually doubled down. 

[Sly]

13 minutes ago, CosbehFox said:

We are bothered but it’s not the largest percentage of us at all. Plenty of us told we’ve been ungrateful and the club is absolutely running out of cash 

The general match day / Facebook fan will tells us that we should be graceful, as we were in League 1 …. Once

[dmayne7]

2 hours ago, teblin said:

I asked a question a few months ago.

 

Are they incompetent?  (think we can agree yes here)

Do they just not care? (starting to think its the case)

 

I am starting to think they are just a bit stupid, or in denial or something.

 

Very worrying times. 

 

Starting to think that?! The evidence has been there for several years that Top does not actually care about the club. At best, he's clinging on to this misguided sense of duty to his father but even that is totally warped

[funkyrobot]

1 hour ago, Officer Doofy said:

Can you highlight the positives that he's leaving out?

The very significant reductions in wages, the significant sales well above and beyond the £28m outstanding transfer debt. The quality/value of the youth players. Maguire lights the touch paper and allows uninformed non accountants without up to date information to declare the worse case scenario.
 

Which is what if going on in this thread. We know the club has been ran badly, we also know the club have put better structures in place to prevent some of the failures in the past and we know the club is also up for sale and despite the pessimism on here, it’s probably the best time to buy a club of this stature. 

[Juan Carrito]

It's expensive, but I don't think the factoring of transfer receivable is the worst thing in the world if you're using the funds for something that is likely to be cash generative. The issue we have is that we've just been using it to fund day to day expenses and eventually you run out of marketable players to sell - when you factor in the fact that our tv/sponsorship income will be well down and our costs, even if dropping, won't fall by the same proportion then a massive cash crunch feels inevitable at some point. If you have an owner who will cover it then fine, but I'm not sure how much that is the case anymore ......

 

KM does like to ham things up for clicks in my opinion but we're clearly, despite a positive pre season, in a horrendous financial bind.