KP Debt to Equity

[Stevosevic]

 

Does this strengthen us at all transfer wise? 

[Lineker's Left Foot]

Yes I believe so.  Think it’s a massive statement of intention?

[UniFox21]

2 minutes ago, Stevosevic said:

 

Does this strengthen us at all transfer wise? 

Doubt it. Does PSR take debt into account to the owner, thought it was simply income and expenditure on transfers and football related costs 

[FrankieADZ]

massive well done to him

 

but all due respect, it feels like something thats just been done to try distract the fans and try and win them back over

[MattFox]

They’ve done this before without releasing a statement 

 

PR fight back definitely underway

[StanSP]

Further proof he's here for the long term. 

 

Maybe he's about to pay Rudkin off

[jbflcfc]

Can I have an idiots guide to this please!

[Nolucklcfc]

Great so he’s not in the mindset of selling up the … 🙃

[Tuna]

Ok, good, now lets get some signings

[Ian Nacho]

Nice timing for a bit of KPFC propaganda. 

[richardsfoxes]

It means as a "club" we have more leverage with borrowing money, the less debt we have the more we can borrow against the equity in the company (Infrastucture, players, IP etc).

[El_Thief]

Doing it before the new rules kicks in next week regarding interest payments for connected parties that would count to PSR. It's related to that Man City hearing last year where both Man City and Prem claimed they won.

[st albans fox]

10 minutes ago, Stevosevic said:

 

Does this strengthen us at all transfer wise? 

You will recall that one of the issues highlighted a few months ago was owner loans to clubs which were not being charged interest at commercial rates.   This was assessed to be wrong.  So you should expect to see a lot of clubs that are sailing close to PSR winds to be doing this.  hence we avoid an interest charge on our accounts of around £8m. Given that we are half way through the financial year that would reduce our losses 24/25 by approx £4m.  
 

 

Edited 24 January by st albans fox

[Sly]

They’ve had this sitting around since May I believe. It was in last years account as a possibility.

 

It’s just moving cash around.

[El_Thief]

1 minute ago, El_Thief said:

Doing it before the new rules kicks in next week regarding interest payments for connected parties that would count to PSR. It's related to that Man City hearing last year where both Man City and Prem claimed they won.

Meant to say the Forest owner has just done it for the same purpose. Probably see lot of it happening at companies house this week.

[Brenfox]

3 minutes ago, jbflcfc said:

Can I have an idiots guide to this please!

You owe your Dad a tenner but he says 'na don't bother paying me back, forget it'

[adam]

The kPFC fan boys over on Facebook will be all over this. What a great owner. Back the lads.

Edited 24 January by adam

[Lako42]

Now sell

[Nolucklcfc]

Just now, Lako42 said:

Now sell

Would be more attractive to a buyer with virtually no debt 👀

[Stuntman_Mike]

I don't want this board to have more money to spend 

[Footballwipe]

5 minutes ago, Sly said:

They’ve had this sitting around since May I believe. It was in last years account as a possibility.

 

It’s just moving cash around.

Great headline though, just as momentum starts to build against his increasingly terrible ownership of the club.

 

Some would call it convenient timing...

[Mickyblueeyes]

 

What created the £124m debt ? 

[MattFox]

Look who’s piped up

 

 

[bmt]

3 minutes ago, Mickyblueeyes said:

 

What created the £124m debt ? 

They converted £124m equity to debt a while ago

[HankMarvin]

The last time 

 

Their conversion into equity serves to strengthen the Club’s balance sheet, reduce its interest costs, and provide further evidence of King Power International’s commitment to supporting the Club’s long-term sustainability."

Srivaddhanaprabha's gesture is the second of its kind since the family took control of the club back in August 2010. It follows the lead of his late father, Vichai, who tragically died in a helicopter crash that claimed the lives of two other passengers and the pilots outside of the King Power Stadium in 2018.