Leicester at risk of another Premier League PSR charge over latest accounts

[K789]

1 minute ago, Iwebema said:

I would be surprised if it was us as we were in the EFL last season? We sold alot of players. Wages are likely still too high but I think we did a reasonable amount of work to comply.

 

I'm not sure how we could be in breach after half a season in the prem? I know it's all very complex though.

 

On the Everton point, I have a couple of Everton fans at work and they think it's them, I don't really understand how they've got in such a mess as they've been about +100m in player sales the last 2 seasons. Will it be to do with the new ground? 

Interest payments on loans if it is them

[Ric Flair]

9 minutes ago, moore_94 said:

Stefan Borson has said for some reason we might actually still get the £105m threshold, which seems to be the reason why he and others are completely unsure whether we have breached or not

 

 

If that's a distinct possibility and we stay up and the losses then drop to £83m including 24/25 then I foresee major issues for 24/25. We've spent nearly £80m last summer, which is £15-20m on the amortised books (although Praet and Vestergaards circa £8-9m dropped off) as well as wages going back up upon promotion.

 

 

[Iwebema]

4 minutes ago, K789 said:

Interest payments on loans if it is them

Thanks, I was just flicking through and thinking how on earth can it be them they are getting premier league money every year and selling way more than buying.

[Bert]

Let’s pray it’s Everton and they get a points deduction  

[lcfc_forever]

36 minutes ago, Ric Flair said:

If we have breached then I don't see how we weren't going to breach anyway as we raised over £90m in player sales and Enzo going in 23/24 accounts. We added only £10m to the amortised books in the signings we made in the summer of 2023.

 

Therefore if we have breached, by my reckoning the only way we'd have complied is a fire sale on players in the summer of 2023 that wouldn't worsen our PSR (basically can't sell/release anyone below what the remaining book value less the years wages saved). That would have been trying to get Ricardo and Justin out on frees or nominal fees and saved possibly £5-10m in wages, released Vardy, somehow tried to get Ward out. But other than leaving ourselves with no chance of promotion and half a squad, I also don't know if that would have been enough.

 

Stefan Borson has us down as a deficit by upwards of £20m. So had we not signed a single player in 2023/24 and sold KDH for £35m and got £10m for Enzo (wouldn't have happened given both went for the fees they did due to a very good 2023/24 season) then we might have got somewhere close but still iffy.

Agree, feels like we were screwed by the fiasco of 22/23 and only a firesale could have avoided another breach if that is the case, but then we would have put promotion at risk and got hammered by the EFL.

 

By the way, Blue Tinted Glasses' source was Stefan Borsan, they just didn't attribute it. 

[Bilo]

2 minutes ago, Bert said:

Let’s pray it’s Everton and they get a points deduction  

If it's Everton, given that they had two points deductions last season, they'll fight it hard. I wouldn't be surprised to see a pretty light two pointer again.

[Bert]

Borson said that good news in September? Now saying we are likely to fail though? 

[BenTheFox]

3 minutes ago, Bert said:

Let’s pray it’s Everton and they get a points deduction  

Everton could be deducted 30 points and they'll still find a way to stay up. 

[moore_94]

10 minutes ago, Ric Flair said:

If that's a distinct possibility and we stay up and the losses then drop to £83m including 24/25 then I foresee major issues for 24/25. We've spent nearly £80m last summer, which is £15-20m on the amortised books (although Praet and Vestergaards circa £8-9m dropped off) as well as wages going back up upon promotion.

 

 

Expect to see Hermansen and probably someone else squeezed into being sold in June

 

But if we get relegated could we try playing games that got us out of the last punishment again?

[Bert]

1 minute ago, Bilo said:

If it's Everton, given that they had two points deductions last season, they'll fight it hard. I wouldn't be surprised to see a pretty light two pointer again.

Just because they’ve had points deductions before shouldn’t give them any leeway for future punishments. If anything it should be more for repeat offenders. 

[ClaphamFox]

3 minutes ago, lcfc_forever said:

Agree, feels like we were screwed by the fiasco of 22/23 and only a firesale could have avoided another breach if that is the case, but then we would have put promotion at risk and got hammered by the EFL.

 

By the way, Blue Tinted Glasses' source was Stefan Borsan, they just didn't attribute it. 

Did Stefan Borson speak to Blue Tinted Glasses, or did they just use his vague guesswork about us on the radio last week as their sole source?

[Bilo]

Just now, Bert said:

Just because they’ve had points deductions before shouldn’t give them any leeway for future punishments. If anything it should be more for repeat offenders. 

That would be the logical approach,  I agree. It's whether the PL want the smoke from their lawyers when the club challenge it. They've already lost appeals to both us and Everton.

[Bilo]

How reliable is BTG? 

[TheGoldenGod]

With all due respect, Borson isn't the all-seeing eye. He along with every other so called "financial expert" said we were dead to rights last time. Borson is an ex Man City employee for Christ sake.

[Babylon]

3 hours ago, LFEFox23 said:

So there's absolutely nothing they could of done to stop it?

Well we could have spent absolutely nothing, stayed in the Championship and been potentially in an even worse situation without premier league money. We could have come up and spent absoultely nothing and banked all the cash. 

 

The reality is, getting relegated was never even considered when budgeting. So the gaps between compliance and what we could achieve were vast. It's like turning round an oil tanker because players are on contracts that you can't just stop paying. 

 

It's a balance between having a total fire sale and giving up being competitive, or trying to cut back whilst also remaining competitive. It's not an easy one to strike, I would have preferred us to come up, bank the money and plan for next season by buying the cream of talent at that level. We've neither really given it a go at staying up, or planned for next season, which is my issue. 

 

But financially, as I said it's always going to take time to correct. You are measured over a number of years, you might have done all you can possibly do and still fail because of numbers you posted 3 years ago, for instance. 

Edited 7 January by Babylon

[AKCJ]

1 minute ago, TheGoldenGod said:

With all due respect, Borson isn't the all-seeing eye. He along with every other so called "financial expert" said we were dead to rights last time. Borson is an ex Man City employee for Christ sake.

We were dead to rights. We just had a lawyer go through the rule book to look for loopholes.

[ClaphamFox]

2 minutes ago, Bilo said:

How reliable is BTG? 

Not very reliable. They just seem to get a lot of their information from the media then act is if they've obtained it from inside sources. They tend to repeat any old crap, some of which occasionally ends up being true.

[moore_94]

6 minutes ago, AKCJ said:

We were dead to rights. We just had a lawyer go through the rule book to look for loopholes.

I am quite looking forward to seeing what Sir DeMarco can come up with next to get Top and co to somehow escape another punishment they deserve

[Frank Large's Black Book]

'scuse me.  Dumb Question Alert.

 

Why are teams worried (or not) about breaching?  Surely to god they a) know the rules, and b) know their numbers.

What exactly is difficult?

 

Note:  this is a serious question, not an invitation to rant on about our leadership - again.

[UniFox21]

Just now, Frank Large's Black Book said:

'scuse me.  Dumb Question Alert.

 

Why are teams worried (or not) about breaching?  Surely to god they a) know the rules, and b) know their numbers.

What exactly is difficult?

 

Note:  this is a serious question, not an invitation to rant on about our leadership - again.

The rules are grey at best, look at our situation last time, look at Chelsea selling assets to themselves etc.  it all depends how the rules are interpreted, and then you have the appeals board coin toss.

[lcfc_forever]

17 minutes ago, ClaphamFox said:

Did Stefan Borson speak to Blue Tinted Glasses, or did they just use his vague guesswork about us on the radio last week as their sole source?

They used his tweets about it

[CosbehFox]

Borson's a plonker. Maguire is at least a decent fella (and appears good mates with De Marco - who appears a right character) 

[coolhandfox]

26 minutes ago, Bert said:

Borson said that good news in September? Now saying we are likely to fail though? 

He doesn't have a clue!

 

Unless you have access to the account you can't.

[coolhandfox]

Just now, CosbehFox said:

Borson's a plonker. Maguire is at least a decent fella (and appears good mates with De Marco - who appears a right character) 

Only person I have any time for is The Swiss Ramble, well worth the sub.

 

The Swiss Ramble | Substack

 

[TheGoldenGod]

25 minutes ago, AKCJ said:

We were dead to rights. We just had a lawyer go through the rule book to look for loopholes.

If they were 'experts' they would have seen that then pal. My point still stands, they've not got a scooby.