Macquarie Loan for Parachute Payments Rolled Over

[Terraloon]

10 minutes ago, AjcW said:

So 45% of £116m is £52m... I wasn't far off  

It’s not the total payments made that’s counted it’s the two equal shares ( prize money isn’t factored in ) 

The UK equal share was £29.8 million and the international share was £59.2 million making ££89 million so in 26/7 55% of £89 million is £49.8 million in 26/27 it reduces to £40.05 m

 

One point of note is that the fee that’s going to be charged for all this will reduce the sums that can be drawn by I would guess between 5&10% 

 

Edited 14 January by Terraloon

[HankMarvin]

8 minutes ago, Terraloon said:

Copied from wiki
 

Parachute payments are unique to the English game and currently see clubs relegated from the Premier League receive a percentage of the equally shared element of broadcasting rights each Premier League club receives. This percentage drops progressively over a three-year period – 55% in the first year, 45% in year two and, if the club was in the Premier League for more than one season before relegation, 20% in the third year. (However, if a club is only in the Premier League for one season, it will not receive the 20% share in the third year)

I had already edited the previous post,  I saw there was a rule change to stop the “gaming of the system” 👍🏻

[beepee1984]

In July it was reported by Leicester Mercury and East Midland business news that we already had secured loans against Parachute payments untli 2028 - said at the time to be an investment to help fund the summer transfer window - and that never happened

 

"Leicester City has taken out another loan, this time from Australian bank Macquarie, ahead of the upcoming Championship season. The loan, filed with Companies House, is secured against the club’s Premier League funds due until 2028, including parachute payments following their relegation." 

[Terraloon]

9 minutes ago, beepee1984 said:

In July it was reported by Leicester Mercury and East Midland business news that we already had secured loans against Parachute payments untli 2028 - said at the time to be an investment to help fund the summer transfer window - and that never happened

 

"Leicester City has taken out another loan, this time from Australian bank Macquarie, ahead of the upcoming Championship season. The loan, filed with Companies House, is secured against the club’s Premier League funds due until 2028, including parachute payments following their relegation." 

The charge that has now been superseded was till January 27 the latest one moves that January date on till June 27

 

My guess is that the final payment to PL clubs will be made for 26/7 by the end of June 27 which fits with most clubs accounts year end

Edited 14 January by Terraloon

[Babylon]

46 minutes ago, filbertway said:

So assuming we don't go up. Our main income for next season is already spoken for.

 

Which means we likely means sell Fatawu and Bilal. Borrow money against those, then use that cash to fund the club, alongside ticket/merch income next season?

So, I'd expect we'll see a fairly heavy dose of academy players in next season's squad.

Not necessarily, it just means they offer us a loan facility that's secured against future payments. It does not mean that the money is gone already. I've not read this document, but that's what most of the previous ones have been. 

Similar to you taking a loan from the bank for £50k that's secured against your house. The security is only there if you don't pay the money you owe to them as and when it's due. 

 

There are a few things to consider, for instance, Money is paid in stages by the league and premier league. So whilst you might have, say a guaranteed £100m, you don't physically get the money at the start of the season. So these guys give you a loan facility enabling you access to some money up front during the season. 

 

Just because it's secured against prize money, also doesn't mean it's secured against ALL of the prize money. It could be a £30m loan facility that's secured against £100m worth of prize money. 

You can pay that money back whenever you want, however you want. They only take the money from the league IF you default on your payments to them. Exactly like a normal loan, you pay it back monthly and they only take your house if you don't pay for months on end and default. The house here being prize money and parachute payments etc. 

So, we could pay it back when we take the parachute payments from the league, or we sell a player, or King Power decide to make a loan, that's used to pay off the debt and then they wipe that out. 

[AjcW]

22 minutes ago, Tommy G said:

More alarming is the FD can't get his act together to do the confirmation statement - my guess is due to the new gov.uk one log in is causing chaos - because all directors now have to have their own unique submission reference, I presume Top and Apichet haven't been checking their emails 

 

They will be getting a First Gazette notice soon.

Interestingly the FD didn't witness this particular loan agreement, assuming because Top was in thailand, it was witnessed by a KP lawyer.

 

If that's the way we're no operating then I imagine the FD is now powerless on the matter. 

I did pop monica a message earlier to remind her its now 2 months overdue though....

[HankMarvin]

2 minutes ago, Babylon said:

Not necessarily, it just means they offer us a loan facility that's secured against future payments. It does not mean that the money is gone already. I've not read this document, but that's what most of the previous ones have been. 

Similar to you taking a loan from the bank for £50k that's secured against your house. The security is only there if you don't pay the money you owe to them as and when it's due. 

 

There are a few things to consider, for instance, Money is paid in stages by the league and premier league. So whilst you might have, say a guaranteed £100m, you don't physically get the money at the start of the season. So these guys give you a loan facility enabling you access to some money up front during the season. 

 

Just because it's secured against prize money, also doesn't mean it's secured against ALL of the prize money. It could be a £30m loan facility that's secured against £100m worth of prize money. 

You can pay that money back whenever you want, however you want. They only take the money from the league IF you default on your payments to them. Exactly like a normal loan, you pay it back monthly and they only take your house if you don't pay for months on end and default. The house here being prize money and parachute payments etc. 

So, we could pay it back when we take the parachute payments from the league, or we sell a player, or King Power decide to make a loan, that's used to pay off the debt and then they wipe that out. 

Not seen you post for a while. 

Edited 14 January by HankMarvin

[Terraloon]

2 minutes ago, Babylon said:

Not necessarily, it just means they offer us a loan facility that's secured against future payments. It does not mean that the money is gone already. I've not read this document, but that's what most of the previous ones have been. 

Similar to you taking a loan from the bank for £50k that's secured against your house. The security is only there if you don't pay the money you owe to them as and when it's due. 

 

There are a few things to consider, for instance, Money is paid in stages by the league and premier league. So whilst you might have, say a guaranteed £100m, you don't physically get the money at the start of the season. So these guys give you a loan facility enabling you access to some money up front during the season. 

 

Just because it's secured against prize money, also doesn't mean it's secured against ALL of the prize money. It could be a £30m loan facility that's secured against £100m worth of prize money. 

You can pay that money back whenever you want, however you want. They only take the money from the league IF you default on your payments to them. Exactly like a normal loan, you pay it back monthly and they only take your house if you don't pay for months on end and default. The house here being prize money and parachute payments etc. 

So, we could pay it back when we take the parachute payments from the league, or we sell a player, or King Power decide to make a loan, that's used to pay off the debt and then they wipe that out. 

It could be paid back you are right, it might not yet be drawn down again that’s a possibility but there aren’t any staged payments in settlement the sum to settle is paid directly from the PL . 
These arrangements are nothing like a loan secured against a house 

[Tommy G]

2 minutes ago, AjcW said:

Interestingly the FD didn't witness this particular loan agreement, assuming because Top was in thailand, it was witnessed by a KP lawyer.

 

If that's the way we're no operating then I imagine the FD is now powerless on the matter. 

I did pop monica a message earlier to remind her its now 2 months overdue though....

Yep, bit odd he's not delegating this - he's just the PSC and shouldn't be dicking around with loan extension docs. 

[st albans fox]

29 minutes ago, Tommy G said:

More alarming is the FD can't get his act together to do the confirmation statement - my guess is due to the new gov.uk one log in is causing chaos - because all directors now have to have their own unique submission reference, I presume Top and Apichet haven't been checking their emails 

 

They will be getting a First Gazette notice soon.

They should have done the conf statement early Nov to avoid the problem.  Nothing to stop them doing it early.  Then they’d have months to sort that ID stuff out. 

[Tommy G]

2 minutes ago, st albans fox said:

They should have done the conf statement early Nov to avoid the problem.  Nothing to stop them doing it early.  Then they’d have months to sort that ID stuff out. 

Yep - it's not even that difficult having gone through the process myself, might be trickier if you aren't a UK national.

[HarryDee8]

Is the club using parachute payments, just to fund the day to day running of the club? 

 

 

[VLC86]

30 minutes ago, HarryDee8 said:

Is the club using parachute payments, just to fund the day to day running of the club? 

 

 

If I was going to guess, based on the need for Top to pump in funds from KP to reduce the clubs debt levels while we were a Premier League team on Premier League money, I’d guess at yes we are.

Edited 14 January by VLC86

[Terraloon]

 

27 minutes ago, HarryDee8 said:

Is the club using parachute payments, just to fund the day to day running of the club? 

 

 

That’s a real possibility but as someone else has pointed out that isn’t certain.

 

What I will add is that irrespective then come the end of next season unless promotion is achieved there won’t be any parachute payments to fund anything 

[Jattdogg]

When you click on a thread to gain insight only to realize it's all in greek. 

[ramboacdc]

1 hour ago, filbertway said:

So assuming we don't go up. Our main income for next season is already spoken for.

 

Which means we likely means sell Fatawu and Bilal. Borrow money against those, then use that cash to fund the club, alongside ticket/merch income next season?

So, I'd expect we'll see a fairly heavy dose of academy players in next season's squad.

With Ayew still up front on a rolling contract I have no doubt. 

No Ayew, no party. 

[Wink84]

We really need to stop kicking the can down the road.

 

I understand there's only so much we can do right now given what's already happened. We have to hope that there's been some serious lessons learnt behind the scenes, and develop sustainable ways of running a football club. 

 

Rather than using the youth prospects coming through to improve us, we'll end up developing them to sell to recover from this shit for still a few years I feel. 

 

We really could go on to have another 10 years stint in the championship.

[Sol thewall Bamba]

Going well then.

[The Year Of The Fox]

2 minutes ago, Sol thewall Bamba said:

Going well then.

Nothing to see here 

 

#inToPwEtRuSt

[Suzie the Fox]

2 hours ago, AjcW said:

It means we've realised we've not got a hope in hell of getting promoted this season.

 

Probably confirms zero incoming, and probably accounts for Marti losing his shit and storming off too  

What did i miss and when and more importantly why am i only hearing about this now.. Please expand, i'll go grab popcorn.

[AjcW]

8 minutes ago, Suzie the Fox said:

What did i miss and when and more importantly why am i only hearing about this now.. Please expand, i'll go grab popcorn.

Sorry I was thinking about the future when he loses his shit after being given fake promises… the KP way…

[Nolucklcfc]

He’s not putting any money into the club. What’s the point of him owning the club? 
 

**** off man. Just go. 

[StanSP]

Sign of a well-oiled machine.

 

We're the beaming example of how not to run the club off the field (and on it tbf ) 

[UniFox21]

They've jumped a few dots here with the conclusion 

 

 

[The Year Of The Fox]

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

Edited 14 January by The Year Of The Fox