Macquarie Loan for Parachute Payments Rolled Over

[ACF]

In a vaccuum I would not be overly concerned by this. I think the ‘borrowing against future transfer fee’ loans were totally overblown and not a dumb idea. 

 

in our current state though it’s just another sign that shows our income is just completely underdone vs what it needs to be. Wage bills need to come down quickly, which hopefully they will after the next load of contracts expire. 
 

Would prefer if everyone also looked at the income side of things, rather than just expenses. Football is an expense and typically you have to spend to be competitive. We’ve got a lot of wasted cash being spent, but it could be balanced if the club were performing better commercially.

[Grebfromgrebland]

I'd love to know the the 12 -18 month plan is for the club, they definitely have one.

[The Year Of The Fox]

18 minutes ago, Silebyfox_89 said:

Looking forward to the "Can't pay? We'll take it away" lads issuing the high court writ to Top and Rudkin through the letterbox on CH5.

They’d have to find them both first to issue the writ 

[Pliskin]

28 minutes ago, Tuna said:

Admin may be the only way we get rid of king power sadly

Agreed. Only other way out of it, is someone approached Top with an offer he can’t refuse…. But who in their right mind would? 
 

But then again, if Birmingham City can attract someone, surely we still have some pull?  

[foxfanazer]

37 minutes ago, Silebyfox_89 said:

Looking forward to the "Can't pay? We'll take it away" lads issuing the high court writ to Top and Rudkin through the letterbox on CH5.

The first repossession is Wout Faes 

[Gamble92]

21 minutes ago, Grebfromgrebland said:

I'd love to know the the 12 -18 month plan is for the club, they definitely have one.

I'd love to know why they spent like they did when we come down first time, knowing it would basically stick a middle finger up to PSR but then when we went up sold KDH. Why not keep him when it was all for nothing anyway and give ourselves the best chance of staying in Premier League. A -4 in the Premier League with 100m spent is a lot better than this situation. 

[VLC86]

1 minute ago, foxfanazer said:

The first repossession is Wout Faes 

With @hfaes standing at the gates to Seagrave crying in a dressing gown screaming “HE’S MY BABY BOY”.

[Pliskin]

To be fair, reading into the current state of King Power, it may not be beyond the realms of possibility that Top is actually seeking to sell the club, but isn’t being open about it. King Power appears to be in a mess, so surely clinging onto the club isn’t going to help for Top?

[StanSP]

1 hour ago, Grebfromgrebland said:

I'd love to know the the 12 -18 month plan is for the club, they definitely have one.

Club doesn't know what it's doing in the next 12 days, let alone beyond that. 

[Pliskin]

Nasser Al-Khelaifi Is allegedly wanting to take over an English club. He did make enquiries into West Ham. Might slide into his DM’s…. Put the stink out see if he gags. 

[murphy]

For all the doom and gloom it's not beyond the realms of possibility (although unlikely) that we make the play offs this year. 

[Nolucklcfc]

2 hours ago, Pliskin said:

To be fair, reading into the current state of King Power, it may not be beyond the realms of possibility that Top is actually seeking to sell the club, but isn’t being open about it. King Power appears to be in a mess, so surely clinging onto the club isn’t going to help for Top?

But then why give the FAB all this crap about how passionate he is to get the club back to where it was and that crap interview he did? If he was looking to sell he’d have just stayed silent, although he is basically doing that now. 

[AyewJoking]

"Bring people closer together" = sell the stadium and Seagrave and move in with Leicester Tigers

[Collibosher70]

8 hours ago, Lambert09 said:

We’re not getting a striker until 2030

Blimey...daka will have scored 7 by then

[PAULCFC]

5 hours ago, Nolucklcfc said:

It’s borrowed against future parachute payments I think, so it’ll be paid but it’s how long we can keep doing it … 

That's what I mean really....really.It's unstainable.Can any one else remember the quote from Vichai I think it was that the club would be self funding in a few years?

[PAULCFC]

4 hours ago, Grebfromgrebland said:

I'd love to know the the 12 -18 month plan is for the club, they definitely have one.

Do they......I admire your optimisam!

[PAULCFC]

5 hours ago, Tuna said:

Are we basically using pay day loans to survive as a business?

Looks that way!

[Globalfox]

7 hours ago, The Year Of The Fox said:

Maguire states it’s likely because the owner doesn’t want to chuck in any more cash 

Under the new rules even owner loans have to include market rate interest so why use your own money when you can use a banks. Large businesses do this daily it’s normal.

[Claudio Fannieri]

It was more understandable and easier to explain away when we were effectively using this facility as factoring for larger transfer fees to then reinvest on transfers and wages ourselves.

 

However fast forward to now and given we haven’t been very active in bringing new players in except for frees and the odd loan, and this facility is against future parachute payments then it’s showing the well has run dry and it’s now a case of using this facility if and when required to help manage day to day cash flow and running costs. 

[Terraloon]

5 hours ago, Globalfox said:

Under the new rules even owner loans have to include market rate interest so why use your own money when you can use a banks. Large businesses do this daily it’s normal.

Sorry that’s simply wrong.

 

Interest free loans from owners are still allowed. 
 

What has changed is when a club submits its PSR numbers they will include a notional interest  number in respect of any loans. 

Edited 15 January by Terraloon

[Terraloon]

1 hour ago, Claudio Fannieri said:

It was more understandable and easier to explain away when we were effectively using this facility as factoring for larger transfer fees to then reinvest on transfers and wages ourselves.

 

However fast forward to now and given we haven’t been very active in bringing new players in except for frees and the odd loan, and this facility is against future parachute payments then it’s showing the well has run dry and it’s now a case of using this facility if and when required to help manage day to day cash flow and running costs. 

As stated earlier in this thread there isn’t anything that’s been put in the public domain that tells us how much , if anything, of the PL Parachute payments have been drawn down .

 

I have thought long and hard about the possibility that this is just a facility and is there just in case and that really could be the case but the more I try and rationalise all this I come to the conclusion that the extension off the security period extending from Jan 27 to June 27 suggests that either the money due by way of parachute payments up to Jan 27 have or are being drawn down in this season.

 

The PL don’t pay parachute payments in one annual instalment they are paid more regularly ( I believe every couple of months) so simply put LCFC can’t wait for these regular payments a to appear .

 

As you say it’s easier to understand  using this facility as a factoring facility but it comes down to this , and yes I though it’s not rocket science, 

 

1) The club are spending far more than it can earn

2) Kicking the can down the road both from a financial and regulatory has reached the point where it can’t be kicked any further and this is a slippery slope that I simply can’t see how the club can navigate 

[foxinsocks]

10 hours ago, Pliskin said:

Agreed. Only other way out of it, is someone approached Top with an offer he can’t refuse…. But who in their right mind would? 
 

But then again, if Birmingham City can attract someone, surely we still have some pull?  

I think the problems  at king power mean they wont or cant offer payday loans to the club.  I doubt top has the free cash.  The prospect of administration looms so i expect a fire sale by top.  This would be humiliating but not as bad as seeing the club lost to admin.

[Claudio Fannieri]

19 minutes ago, Terraloon said:

As stated earlier in this thread there isn’t anything that’s been put in the public domain that tells us how much , if anything, of the PL Parachute payments have been drawn down .

 

I have thought long and hard about the possibility that this is just a facility and is there just in case and that really could be the case but the more I try and rationalise all this I come to the conclusion that the extension off the security period extending from Jan 27 to June 27 suggests that either the money due by way of parachute payments up to Jan 27 have or are being drawn down in this season.

 

The PL don’t pay parachute payments in one annual instalment they are paid more regularly ( I believe every couple of months) so simply put LCFC can’t wait for these regular payments a to appear .

 

As you say it’s easier to understand  using this facility as a factoring facility but it comes down to this , and yes I though it’s not rocket science, 

 

1) The club are spending far more than it can earn

2) Kicking the can down the road both from a financial and regulatory has reached the point where it can’t be kicked any further and this is a slippery slope that I simply can’t see how the club can navigate 

Agreed, when you look at the cold hard facts the likes of Winks, Soumare and Daka will cost us somewhere in the region of £7.5m -£10m this season in wages, bonuses etc, so if we cannot shift them in this transfer window we are stuck with them and that means we need £3.75m - £5m just to service that commitment for the remainder of the season, so imagine what level of cash we need to run the whole club for the rest of the season, it’s absolutely eye watering stuff. 
 

The club has an opportunity to massively cut its cloth in the summer but make no mistake this is going to be brutal and need some innovative thinking and leadership to stand any chance of building some sustainable future and success on and off the pitch. 

[kenny]

39 minutes ago, Claudio Fannieri said:

Agreed, when you look at the cold hard facts the likes of Winks, Soumare and Daka will cost us somewhere in the region of £7.5m -£10m this season in wages, bonuses etc, so if we cannot shift them in this transfer window we are stuck with them and that means we need £3.75m - £5m just to service that commitment for the remainder of the season, so imagine what level of cash we need to run the whole club for the rest of the season, it’s absolutely eye watering stuff. 
 

The club has an opportunity to massively cut its cloth in the summer but make no mistake this is going to be brutal and need some innovative thinking and leadership to stand any chance of building some sustainable future and success on and off the pitch. 

Please include Ayew in this list. Please.

[Nolucklcfc]

7 hours ago, PAULCFC said:

That's what I mean really....really.It's unstainable.Can any one else remember the quote from Vichai I think it was that the club would be self funding in a few years?

It’s completely unsustainable yeah. Once the parachutes run out, he might then sell if he can’t or isn’t willing to put money in.