Sky Blues Posted 3 January Posted 3 January 1 hour ago, coolhandfox said: It sort of does as it wipes out any value the club has, if you have no money why would you let an asset worth 300m ish go into administration rather than sale it. The only people who are going to force administration is debtors, and I don’t see it being adventurous to them to them as yet. Financial thing improve massively in the summer with most of the high earns gone and two more seasons of parachute money. There's no Prem money. You only continue to get it for 2 years if you only stay up the 1 season and you've already mortgaged them to keep going. You still have to pay interest charges though. Sheffield Wednesday could have been sold prior to administration but Chansiri kept saying no.
davieG Posted 3 January Posted 3 January I'd have thought there were a lot of ways to raise revenue if cash flow is a problem. We could add to the income from kit advertising, plenty of EFL have extra ads on their shirts and shorts. There must be savings they could make at Seagrave, put some of the pitches on hold and reduce the ground staff, and there must be other areas there that could be cut back. I just don't see much in the way of reducing costs going on if things are as bad as some are saying sure things are good but desperate?
coolhandfox Posted 3 January Posted 3 January 18 minutes ago, Ric Flair said: I am very uncomfortable about what happens to the loans we have had from that Aussie bank, it would appear on the face of it that a huge chunk of our future income is committed to that. Does not sound great if we don't go up (which we won't). Depends how willing they are to re-finance, which is generally an option, or they would probably shallow up the parachute payments.
coolhandfox Posted 3 January Posted 3 January 13 minutes ago, Sky Blues said: There's no Prem money. You only continue to get it for 2 years if you only stay up the 1 season and you've already mortgaged them to keep going. You still have to pay interest charges though. Sheffield Wednesday could have been sold prior to administration but Chansiri kept saying no. You are correct we get this season and next, which is why we need to get our house in order.
MonarchFox Posted 3 January Posted 3 January 12 minutes ago, davieG said: I'd have thought there were a lot of ways to raise revenue if cash flow is a problem. We could add to the income from kit advertising, plenty of EFL have extra ads on their shirts and shorts. There must be savings they could make at Seagrave, put some of the pitches on hold and reduce the ground staff, and there must be other areas there that could be cut back. I just don't see much in the way of reducing costs going on if things are as bad as some are saying sure things are good but desperate? A kit sponsor at £2.5m for a season wouldn't cover half of Harry Winks wages for the same season. We need to clear the decks of the dross high earners we currently have before any kind of rebuild starts. Hopefully a few go this month 3
Terraloon Posted 3 January Posted 3 January 1 hour ago, Claudio Fannieri said: I agree that our PSR position will improve significantly however in all walks of business cash is king, regardless of shifting on big earners, if we have run out or running out of cash to pay our bills and stay on top of day to day running costs then you are effectively bankrupt and administration is a guarantee. I honestly believe the club is no longer sustainable and KP/Aiyawatt can no longer sustain us or they have made a conscious decision to no longer throw good money after bad. Hopefully that means they are prepared to sell but just like Chansiri is the valuation remotely realistic. Or they will have a fire sale and asset strip in January to fund the club until the end of the season. If the big earners didn’t have relegation clauses in their contracts then I would find that amazing indeed the last published accounts record a dramatic reduction in the wage bill indeed following relegation in 22/23 from £205 m to £107 m in 23/24 I am not so concerned from a PSR perspective for 24/25 as a stand alone year or indeed if you factor in the PSR allowance of £105 million we are passed that, but it’s what is happening here and now. My guess is that the main income streams will accounting wise just about cover the wages but you have then to add on all the costs for such things as utilities, business rates, HP costs, Interest, ground costs , trading ground costs, insurance travel etc etc etc . Just on a back of a fag packet theses accounting costs for 25/26 will run in excess of £30 million maybe as much as £40 million and that’s before you add on amortisation. In reality there needs to be circa £70 million from player profits ( not what they were sold for) We won’t know till we see the 24/5 accounts which players that were sold in the summer 25 window are actually in the 24 /5 or 25/26 year as that will tell us something but the fact that the club haven’t this season paid any fees , well according to transfermarket, tells us a massive story. But that’s in accounts not in the cash in and out. 36 minutes ago, fox_favourite said: I'm with you. Someone would have reported it by now. But the fact it hasn't happened is a disgrace on part of the league. If they were confident in their rules and there were clear guidelines, then this would have been sorted way before now. Punishment given, club appeal, sanction placed. But half way through and nothing. These rules are ridiculous and the longer it goes on, I feel the weaker these rules look. Shambles of a regulator. Sorry but you are missing the point that the timing of all this isn’t down to the league but the IC 1
Sky Blues Posted 3 January Posted 3 January 9 minutes ago, coolhandfox said: You are correct we get this season and next, which is why we need to get our house in order. You have already received the money. You took another loan that was for everything you have coming in until June 2028. There's no pot of gold hidden anywhere. The money has gone on keeping you afloat this season. https://www.leicestermercury.co.uk/sport/football/transfer-news/leicester-city-handed-financial-boost-10355889 3
Popular Post Wink84 Posted 3 January Popular Post Posted 3 January 36 minutes ago, Ric Flair said: I am very uncomfortable about what happens to the loans we have had from that Aussie bank, it would appear on the face of it that a huge chunk of our future income is committed to that. Does not sound great if we don't go up (which we won't). Constant gambling future TV money on success on the pitch will always catch up with you for a club of our size. We'll be paying the price of these 'gambles' for a long time to come i fear. 8
Terraloon Posted 3 January Posted 3 January 17 minutes ago, coolhandfox said: Depends how willing they are to re-finance, which is generally an option, or they would probably shallow up the parachute payments. How can they be re- financed? The fees due for transfers that already have taken place have all been advanced from the Aussie bank and th parachute payments in all like have likewise been advanced. 1
Lineker's Left Foot Posted 3 January Posted 3 January 11 minutes ago, Sky Blues said: You have already received the money. You took another loan that was for everything you have coming in until June 2028. There's no pot of gold hidden anywhere. The money has gone on keeping you afloat this season. https://www.leicestermercury.co.uk/sport/football/transfer-news/leicester-city-handed-financial-boost-10355889 Aah so you’ve come in here to gloat about a club when most Leicester fans couldn’t give a 💩about Cov! All you lot say is Mind the Gap : problem is we won trophies when you could; Big Sox won’t let you do it now!
Gamble92 Posted 3 January Posted 3 January 24 minutes ago, MonarchFox said: A kit sponsor at £2.5m for a season wouldn't cover half of Harry Winks wages for the same season. We need to clear the decks of the dross high earners we currently have before any kind of rebuild starts. Hopefully a few go this month Id actually expect us to be in a good position for the first time in years this summer. I think they're going to get yet another chance to get us out this mess.
Terraloon Posted 3 January Posted 3 January 29 minutes ago, davieG said: I'd have thought there were a lot of ways to raise revenue if cash flow is a problem. We could add to the income from kit advertising, plenty of EFL have extra ads on their shirts and shorts. There must be savings they could make at Seagrave, put some of the pitches on hold and reduce the ground staff, and there must be other areas there that could be cut back. I just don't see much in the way of reducing costs going on if things are as bad as some are saying sure things are good but desperate? Sorry but if there were lots of ways to generate extra revenue they those opportunities would have been considered already or they generate so little there would be no point in tying the club long term. Irrespective it’s worth looking at other Championship clubs commercial/ sponsorship advertising income and my guess is that they are already up there with EFL clubs. All the soft signals are of a club that has cash flow issues and for far too long LCFC have spent way over what it can afford and costs have to be cut but as the Parachute payments decline then the need to be radical will be challenging to say the least 2
Muzzy_no7 Posted 3 January Posted 3 January 18 minutes ago, Sky Blues said: You have already received the money. You took another loan that was for everything you have coming in until June 2028. There's no pot of gold hidden anywhere. The money has gone on keeping you afloat this season. https://www.leicestermercury.co.uk/sport/football/transfer-news/leicester-city-handed-financial-boost-10355889 Oh here you are again. Go and worry about your own wobble disrupting your second best season in your history. 3
coolhandfox Posted 3 January Posted 3 January (edited) 33 minutes ago, Terraloon said: How can they be re- financed? The fees due for transfers that already have taken place have all been advanced from the Aussie bank and th parachute payments in all like have likewise been advanced. Whilst you have assets to refinance against you can always kick the can down the road, when you run out of assets to refinance against is when you are in really trouble. Bank don't really want you to clear a debt, they want you keep playing interest on that debt. We have refinance on future transfer fee before, which we could do on fee for BIK, Fatawu, Nelson. Long as we have something to secure a loan against. Who owners the training grounds Seagrave and Belvoir drive? No saying it a good idea, but it's possible. Wages and our transfer amortisation drop massively next year, spending nothing this summer is part of a massive reboot. Don't get me wrong I don't think we are in a great position but it could be worse especially if we had more of our old established PL on long contracts. With Ricardo, Winks, Daka, Soumare, Ayew all out of contract it's going to reduce the wage bill to more normal championship standards. Edited 3 January by coolhandfox
Craig Posted 3 January Posted 3 January 10 minutes ago, Muzzy_no7 said: Oh here you are again. Go and worry about your own wobble disrupting your second best season in your history. It's not wrong... 1
coolhandfox Posted 3 January Posted 3 January 2 minutes ago, Craig said: It's not wrong... But it's a bit sad..... 1 1
Popular Post Sky Blues Posted 3 January Popular Post Posted 3 January 8 minutes ago, Lineker's Left Foot said: Aah so you’ve come in here to gloat about a club when most Leicester fans couldn’t give a 💩about Cov! All you lot say is Mind the Gap : problem is we won trophies when you could; Big Sox won’t let you do it now! Gloat? I've watched my club go through it and I wouldn't wish it on my biggest enemy. Every time you think it can't get worse you don't have much time to find out you're wrong. A bit of banter harms nobody but some subjects are above banter. This is one of them. At least you have your great memories and will stay in the record books. 12
Wink84 Posted 3 January Posted 3 January 15 minutes ago, Terraloon said: Sorry but if there were lots of ways to generate extra revenue they those opportunities would have been considered already or they generate so little there would be no point in tying the club long term. Irrespective it’s worth looking at other Championship clubs commercial/ sponsorship advertising income and my guess is that they are already up there with EFL clubs. All the soft signals are of a club that has cash flow issues and for far too long LCFC have spent way over what it can afford and costs have to be cut but as the Parachute payments decline then the need to be radical will be challenging to say the least Writing was on the wall when those in charge of the club thought paying just the players wages 106% of our turnover was a good idea. Even the most basic accountant can tell you that's a disaster waiting to happen. 1
The Year Of The Fox Posted 3 January Posted 3 January 22 minutes ago, Lineker's Left Foot said: Aah so you’ve come in here to gloat about a club when most Leicester fans couldn’t give a 💩about Cov! All you lot say is Mind the Gap : problem is we won trophies when you could; Big Sox won’t let you do it now! 17 minutes ago, Muzzy_no7 said: Oh here you are again. Go and worry about your own wobble disrupting your second best season in your history. Not sure why we need to get all defensive over facts. Sooner we fans know we’re up shit street, the better Its actually good fans of other clubs are aware- people like these won’t pooh Pooh our boycott. 4
The Year Of The Fox Posted 3 January Posted 3 January 4 hours ago, CrazyKopCorner said: Financial Rating - we are a below average at risk football club. Our financial position has improved over the last 12 months Does that include bank loans based on the PL football we’re not actually playing? 1
Popular Post Corky Posted 3 January Popular Post Posted 3 January I don't think he is rubbing it in, just pointing out what many of us are saying. We don't need to get defensive. 11 1
HankMarvin Posted 3 January Posted 3 January Maybe that’s why they have left the door ajar with the kit sponsor replacement. They will see how the land lies with figures in the second window. Is there a limit by the league what they deem as fair? For example exceeding previous terms for the more desired Prenier league. Obviously we done this before but that wasn’t after a long time in the Premier league which gives a fairly accurate rate.
Spudulike Posted 3 January Posted 3 January They could sell off all that land that King Power own adjacent to Raw Dykes Road if they are that desperate. Must be worth a tidy sum and not much use if they're never going to build on it.
Sky Blues Posted 3 January Posted 3 January 7 minutes ago, HankMarvin said: Maybe that’s why they have left the door ajar with the kit sponsor replacement. They will see how the land lies with figures in the second window. Is there a limit by the league what they deem as fair? For example exceeding previous terms for the more desired Prenier league. Obviously we done this before but that wasn’t after a long time in the Premier league which gives a fairly accurate rate. There might be a suspicion or two if you get 100m for shirt sponsorship for a year in the Championship.
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