Another loan agreed

[AyewJoking]

1 hour ago, hackneyfox said:

Jesus Christ someone else who wants their club to fail.

yeah must be tired of watching the club being run so successfully

[Winstonthedog]

Seems to me ... they didn't know when to stop digging when the hole got to big .... now it's collapsing around them .... borrowing to cover borrowing is not good financial policy 

[Tommy G]

15 hours ago, Foxin_Mad said:

Because its not really a sustainable way to operate, its the equivalent of you using a pay day loan month after month to fund a drug habit

Not at all - the interest rate for starters is completely different 

[Foxin_Mad]

7 hours ago, Tommy G said:

Not at all - the interest rate for starters is completely different 

It’s not a great rate, and really borrowing cash for cash flow isn’t a great way to operate. It’s not really excusable and not the way good business is run.

[urban fox]

21 minutes ago, Foxin_Mad said:

It’s not a great rate, and really borrowing cash for cash flow isn’t a great way to operate. It’s not really excusable and not the way good business is run.

Almost every business, even highly profitable ones, use loans for cash flow. If you make something, you have to buy the materials, pay the labour and overhead costs but may not get paid until said product is delivered. At this time of year, everyone is screaming for the  club to buy new players, yet there is no income coming in until after the season starts (other than maybe player sales). No gate receipts, no match goers spending on merchandise, hospitality etc or tv money coming in.

[Tommy G]

1 hour ago, Foxin_Mad said:

It’s not a great rate, and really borrowing cash for cash flow isn’t a great way to operate. It’s not really excusable and not the way good business is run.

Thanks for the tip - I never mentioned about whether borrowing cash for cashflow was a good idea 

 

I was talking about the comparison between this and a pay day loan - and the rate isn’t too bad at all from the spread quoted in the accounts, its market rate.

 

 

[ian__marshall]

14 hours ago, hackneyfox said:

Which team do you support?

Not KPFC that's for sure. 

[Foxin_Mad]

1 hour ago, urban fox said:

Almost every business, even highly profitable ones, use loans for cash flow. If you make something, you have to buy the materials, pay the labour and overhead costs but may not get paid until said product is delivered. At this time of year, everyone is screaming for the  club to buy new players, yet there is no income coming in until after the season starts (other than maybe player sales). No gate receipts, no match goers spending on merchandise, hospitality etc or tv money coming in.

The club is using these loans without buying any other players. A good business shouldn’t really use debt for cash flow it should build reserves during the good times. I don’t think we can really pretend this is a good thing. 

[MattFox]

On 18/07/2025 at 14:26, l444ry said:

Don't they do this every season? Why get knickers in a twist just to have another pop at the club? Plenty of other things worse than this. 

I’d argue the opposite tbh

 

The financial mismanagement is the worst thing and every other bad decision they take stems from that 

[Tommy G]

59 minutes ago, Foxin_Mad said:

The club is using these loans without buying any other players. A good business shouldn’t really use debt for cash flow it should build reserves during the good times. I don’t think we can really pretend this is a good thing. 

Unless you are a start up or in high growth mode, a lot of your cash will get trapped in working capital - LCFC is neither of these and isn’t making any profit so the cash has to come from loans or from the owner, as we don’t have significant player sales either. 
 

Sorry state of affairs really. 

[iancognito]

On 18/07/2025 at 11:02, VLC86 said:

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.

We've been taking out loans for a decade now. The difference is they were always funded by transfer fees and tv money. The danger now is that we never get that PL cycle back.

[BigGibbo]

Shocker.

 

Probably needed to pay the wages of the 'European quality' dead wood we can't offload. 

 

I wouldn't be at all surprised if when negotiating Ndidi and Vestergaard's contract extensions they forgot the relegation wage drop clause, such is the state of incompetence at the club.

[hackneyfox]

6 hours ago, ian__marshall said:

Not KPFC that's for sure. 

KPFC?

FFS why are some of you so determined to fall out with fellow fans and what makes you think you’re superior to them?

[ian__marshall]

15 hours ago, hackneyfox said:

KPFC?

FFS why are some of you so determined to fall out with fellow fans and what makes you think you’re superior to them?

Who has suggested I'd like to fall out with fellow fans?!? Also, what has given you the impression I think I'm superior, or is that just a generalised assumption? I'm far from feeling that way towards anyone. 

 

My concern is simply that the owners are now using the club as a vehicle to amass debt to either pay off other existing debts or servicing the day to day running of the club which is the result of complete incompetence and mismanagement. Either way you cut it they are ultimately responsible.

 

The ownership in my view has become detached from the fan base. That's my opinion of course, and you and others are entitled to have your own thoughts on this. However, if the news regarding this season's sponsor proves to be correct, it's a big two finger salute to the fan base if the Foxes Trust recent survey represents the viewpoint of the vast majority of the fans. In fact it's  borderline provacation given the timing. 

 

Out of interest do you think the club is being managed well? Also, are you comfortable with the board accumulating such high levels of debt against future earnings given that repayment of such debt is wholly dependent on either a) being a mainstay in the PL, or b) being in position to sell playing assets at significant profitability?

 

I'm genuinely curious to understand your point of view. 

[hackneyfox]

You accuse the management of financial incompetence and then complain when they get a shirt sponsor who will bring in a few extra million.

I’m genuinely curious to understand your point of view.

[Chrysalis]

They just dont know anything else, no communication, pay day loans, just keep on rolling.

[Wymsey]

Still no news on this PSR debacle/fiasco?

[fox_favourite]

2 minutes ago, Wymsey said:

Still no news on this PSR debacle/fiasco?

That is really frustrating. I think it's better to know before we get start where we are with that.

 

The whole PSR thing is farcical anyway. From the club side to the PL and EFL. 

[FoxFossil]

This is deeply worrying. Have we taken out a loan to pay wages and other running costs, against the parachute payments  as we have no cash? The parachute payment is what - £2 million? This suggests we are not a 'going concern' if we don"t have sufficient income to pay our contracted outgoings  such as player wages, until we get the Parachute. What happens if we don't get promoted? Don't get PL cash  but still have players on daft money?

Watch out for CEO or accountants quiting- a sure sign we are in serious trouble.

Edited 20 July 2025 by FoxFossil

[Bluearmyfox28]

27 minutes ago, FoxFossil said:

This is deeply worrying. Have we taken out a loan to pay wages and other running costs, against the parachute payments  as we have no cash? The parachute payment is what - £2 million?

Not sure where you’ve got this figure from but it works out like £40m+ especially for the first year. 
 

Supposedly Leeds, Burnley and Sheff Utd earnt £49m in parachute payments so where you’ve got £2m from I don’t know?!  

[sylofox]

On 19/07/2025 at 01:02, hackneyfox said:

Which team do you support?

I'm sorry it's going to sound like I'm picking on you and I'm not.

I agree with what you are saying, but also with the original post.

 

We keep borrowing money against next years income. It's simple maths it not sustainable. Sooner or later the bank is broken. We've been in administration once and it's going to be twice.

 

Top is gambling on our future all the time and it's only going to end one way sadly.

 

I really don't want this, but the sooner it happens the better.

 

House keeping and simple maths tells you what's going to happen.

[sylofox]

29 minutes ago, Bluearmyfox28 said:

Not sure where you’ve got this figure from but it works out like £40m+ especially for the first year. 
 

Supposedly Leeds, Burnley and Sheff Utd earnt £49m in parachute payments so where you’ve got £2m from I don’t know?!  

It might as well be 2m, we borrowed 40m last season our parachute payments already gone.

 

We've now borrowed more money.

 

I'd take a bet now unless we are sold we are in administration within 3yrs if we don't go up.

[sylofox]

Top could not run a piss up even if he owned the Jack Daniel's distillery.

[FoxFossil]

10 hours ago, Bluearmyfox28 said:

Not sure where you’ve got this figure from but it works out like £40m+ especially for the first year. 
 

Supposedly Leeds, Burnley and Sheff Utd earnt £49m in parachute payments so where you’ve got £2m from I don’t know?!  

Good to know, thanks. Maybe got confused with PL place money increments. 

[Tommo]

Isn't this just a renewal of the loan facility with macquarie? I.e. they agree to loan us up to a maximum of £Xm for a period of Y months? 

 

Just because they agree to loan us up to a maximum of £40m, it doesnt mean that we've borrowed and are paying interest on £40m. You pay interest on how much of that facility you've drawn down. But having the full value available to you should you need it just gives the club peace of mind that they've got the cash to hand all year if they need it.

 

That said, I haven't read the terms so could be wrong.