Another loan agreed

[FoxyPalace.com]

https://www.leicestermercury.co.uk/sport/football/transfer-news/leicester-city-handed-financial-boost-10355889.amp

[StanSP]

Or it's to pay for running costs of the club because we're so much in the shit

 

[VLC86]

It’s probably become essential at this stage. The only way out of this cycle is to stay in the premier league for long enough to finance paying it off or find multiple youth prospects to sell for ridiculous money. Grim.

[VLC86]

Just now, StanSP said:

Or it's to pay for running costs of the club because we're so much in the shit

 

Oh yeah it’s not going on transfers that’s for sure.

[Stadt]

It's to pay the exorbitant wage bill we still have and we barely do anything to address, rather than for transfer fees.

 

Contracts expiring 2026:

Ayew

Coady

Winks

Pereira

Soumare

Daka

Justin

Thomas

Marcal 

 

Let's say they're on £40k pw on average, (bar WMM) which is probably conservative - we have 44 days until the window closes, 6ish weeks. We'll pay that mob £1,920,000 in wages in that period and about £16,000,000 over the course of the season.

 

If we just sold Soumare at whatever his PSR break even is, c. £4m, Winks for c. £3m, Coady for c. £2m, we'd have a bit more headroom, about £9m in fees and save £6m in wages.

 

It makes sense to factor the parachute payments forward but it's just kicking the can down the road.

Edited 18 July 2025 by Stadt

[Realist Guy In The Room]

Fellas.

 

We are ROLLING in it!!

[st albans fox]

In other news, water is wet and ice is cold …….

[Foxin_Mad]

Another payday loan fantastic work from the clueless muppets, doing the same and expecting different results is the definition of madness. I think they are risking entire bankruptcy of the club running this way. 

 

The way to make cash flow better isnt a payday loan, its to trim your spending accordingly

[FoxesFourLife]

God damn it! thought I was going to see news on Feas or Vestergaard going out on loan .

[MPH]

Standard industry practice. This is not news.

[coolhandfox]

Cash flow smoothing is a pretty common financial strategy used inside and outside of football to manage the timing mismatch between a business’s income and expenses. 

[Claudio Fannieri]

Lots of businesses use factoring as a way of drawing down payments earlier and pay a fixed fee % for the service, we are doing something similar albeit having to use a slightly different vehicle due to the circumstances as we are not invoicing etc. 

[Terraloon]

The club entered into a 4 year agreement with these lenders in 23/24. Then they entered into another agreement to advance the KDH fees.

 

Its abundantly clear that the club is struggling to generate enough cash to pay for day to day expenses let alone dip too far into the transfer market 

 

I can’t see how the money will ever be paid off without seeking  further finance agreements . But the problems come home to roost big time if promotion isn’t achieved in 25/26

 

[Terraloon]

9 minutes ago, coolhandfox said:

Cash flow smoothing is a pretty common financial strategy used inside and outside of football to manage the timing mismatch between a business’s income and expenses. 

The facility isn’t short term . It’s not a overdraft, it’s yet another line of costly credit that will need to be serviced on top of the monies already flowing out to service older lines of credit.

[coolhandfox]

30 minutes ago, Stadt said:

It's to pay the exorbitant wage bill we still have and we barely do anything to address, rather than for transfer fees.

 

Contracts expiring 2026:

Ayew

Coady

Winks

Pereira

Soumare

Daka

Justin

Thomas

Marcal 

 

Let's say they're on £40k pw on average, (bar WMM) which is probably conservative - we have 44 days until the window closes, 6ish weeks. We'll pay that mob £1,920,000 in wages in that period and about £16,000,000 over the course of the season.

 

If we just sold Soumare at whatever his PSR break even is, c. £4m, Winks for c. £3m, Coady for c. £2m, we'd have a bit more headroom, about £9m in fees and save £6m in wages.

 

It makes sense to factor the parachute payments forward but it's just kicking the can down the road.

I agree the problem is getting someone to pay those amount and pick up the wages. 

 

[st albans fox]

2 minutes ago, Terraloon said:

The facility isn’t short term . It’s not an overdraft, it’s yet another line of costly credit that will need to be serviced on top of the monies already flowing out to service older lines of credit.

THank goodness we have a good lump sum coming in from Kbet - imagine if we had to survive on a real sponsorship deal !

[Terraloon]

7 minutes ago, Claudio Fannieri said:

Lots of businesses use factoring as a way of drawing down payments earlier and pay a fixed fee % for the service, we are doing something similar albeit having to use a slightly different vehicle due to the circumstances as we are not invoicing etc. 

They do but those companies don’t have PSR to worry about . Factoring will se reduced delivery of invoiced sum. These arrangements come with a charge to interest which won’t be discounted when it comes to PSR submissions 

[st albans fox]

6 minutes ago, Terraloon said:

The facility isn’t short term . It’s not a overdraft, it’s yet another line of costly credit that will need to be serviced on top of the monies already flowing out to service older lines of credit.

Is it restructuring of the existing facility previously negotiated and secured against future TV payments ?

I assume it provides for us to draw down against if we have a cash flow need rather than a loan which is all taken and then paid back over time ??  So the interest paid will be variable depending on what/when we draw down ??

 

[Terraloon]

24 minutes ago, st albans fox said:

Is it restructuring of the existing facility previously negotiated and secured against future TV payments ?

I assume it provides for us to draw down against if we have a cash flow need rather than a loan which is all taken and then paid back over time ??  So the interest paid will be variable depending on what/when we draw down ??

 

Currently there are 9 charges registered

Four of those are for players sold a while ago 

Castagne, Maddison, Harvey Barnes, KDH . Over the next few weeks sums of circa £37 million were due to be paid in respect of those transfers but cash due in 25/26 was advanced and was spent a while ago.I am far from an expert on how this type of facility works but say in the KDH case Chelsea won’t be paying the £10m now due to LCFC it’s paid directly to the lenders who will want interest on that sum.

You then look at the other 5 and no doubt the newest lan will in effect be just a roll over but as I pointed out the stuff hitting the fan if at any point sums due from the PL either decrease or even worse disappears 

 

 

Edited 18 July 2025 by Terraloon

[murphy]

From the thread title I thought that we had gotten rid of someone. 

 

How disappointing. 

[filbertway]

Average Maquerie / King Power meeting

 

 

 

[Danizen]

I thought we'd already borrowed against future payments, last season? 

Edited 18 July 2025 by Danizen

[Dan]

Always reassuring to hear.

[Pita]

More interest to be paid and not spent on players

[st albans fox]

20 minutes ago, Danizen said:

I thought we'd already borrowed against future payments, last season? 

It’s effectively a drawdown facility to provide cash flow in those periods where we don’t have any!

the one last year was used over the past twelve months - we’ve no idea how much though

the sums drawn down and not paid back are secured on future earnings