Business of Sport

[filbertway]

3 minutes ago, DJ Barry Hammond said:

Yeah, some of the stuff he was coming out with felt like “foreshadowing” of what he’d do as an owner of the club.

 

I think that’s the big issue with any potential new owner is that we’re ripe for asset stripping (especially in League One).

 

I doubt we’d get a ‘project / sporting ambition’ style owner because we’d be a very difficult club to get there now given all the financial controls in the way; plus, we’ve already achieved the ultimate most unthinkable goal.

 

We’re not like a Bristol City / Wrexham where just reaching the Premier League is an exceptional achievement for those clubs.

What actually is asset stripping in this conext? Because it just seems like he sold players and reduced the wage spend? 

 

Which just seems like unfortunate but sensible decision making, if the alternative is admin/going out of business.

[Philkeavo]

It’s an astonishing watch. The scale of mismanagement and incompetence in barely comprehensible. This is what I hate about the KPFC brigade, you only need to do a bit of basic research to understand the ruinous state Aiyatwatt is taking Leicester.

[DJ Barry Hammond]

15 minutes ago, filbertway said:

What actually is asset stripping in this conext? Because it just seems like he sold players and reduced the wage spend? 

 

Which just seems like unfortunate but sensible decision making, if the alternative is admin/going out of business.

My understanding is his group bought Sunderland with the clubs own money and essentially flipped it for profit not that long down the line.

 

He could easily do it with us because the club owns assets - both or either training complexes could fit a lot of houses on them! 

 

Other stuff I’ve read suggest he wasn’t very fond of the clubs fans (Sunderland and Charlton) and that this feeling was mutual.

 

I think the suggestions of admin / going out of business are a little far fetched at present; King Power have consistently written off the clubs debt in the past. 

[ramboacdc]

Just now, DJ Barry Hammond said:

I think the suggestions of admin / going out of business are a little far fetched at present; King Power have consistently written off the clubs debt in the past. 

The worry being that if KP go under or do not make enough, there is no money for those debts to be written off. 

[Foxin_Mad]

3 minutes ago, DJ Barry Hammond said:

My understanding is his group bought Sunderland with the clubs own money and essentially flipped it for profit not that long down the line.

 

He could easily do it with us because the club owns assets - both or either training complexes could fit a lot of houses on them! 

 

Other stuff I’ve read suggest he wasn’t very fond of the clubs fans (Sunderland and Charlton) and that this feeling was mutual.

 

I think the suggestions of admin / going out of business are a little far fetched at present; King Power have consistently written off the clubs debt in the past. 

The Stadium land maybe, I believe a covenant is on Belvoir drive, and I doubt housing would be allowed at Seagrave as it would already be there before the club brought the land, which had been for sale for quite a while. Best bet with that is try to sell it to a a hotel chain or repurpose it as a 'resort' 

 

KP may not allow Top to pump any more KP money into Leicester as the company is effectively in restructuring. He maybe able to do it from his personal fortune if he has any liquidity. 

[The Year Of The Fox]

9 minutes ago, DJ Barry Hammond said:

My understanding is his group bought Sunderland with the clubs own money and essentially flipped it for profit not that long down the line.

 

He could easily do it with us because the club owns assets - both or either training complexes could fit a lot of houses on them! 

 

Other stuff I’ve read suggest he wasn’t very fond of the clubs fans (Sunderland and Charlton) and that this feeling was mutual.

 

I think the suggestions of admin / going out of business are a little far fetched at present; King Power have consistently written off the clubs debt in the past. 

As I understand it, not only have their fortunes changed massively over the last 5 years, they’re under a different owner now anyway, who has zero thais (see what I did there) to our club 

[Lesta Legend]

4 minutes ago, Foxin_Mad said:

The Stadium land maybe, I believe a covenant is on Belvoir drive, and I doubt housing would be allowed at Seagrave as it would already be there before the club brought the land, which had been for sale for quite a while. Best bet with that is try to sell it to a a hotel chain or repurpose it as a 'resort' 

 

KP may not allow Top to pump any more KP money into Leicester as the company is effectively in restructuring. He maybe able to do it from his personal fortune if he has any liquidity. 

The covenant can be removed / changed. And if Belvoir Drive were to be mothballed then this would like cause a headache for the council for this to remain empty for years.

[DJ Barry Hammond]

14 minutes ago, ramboacdc said:

The worry being that if KP go under or do not make enough, there is no money for those debts to be written off. 

It’s a multi-billion pound business and Top’s family have strong ties to the Thai Royal Family and Thai government.

 

Whilst we’ve seen no business is too big to fail; it’s a significant size and that should ensure it could leverage cash to support the football club at least in the short/medium term if King Power still wishes to do so.

 

If it doesn’t - that gives a clear indication that King Power would be looking for a sale of the club.

 

 

[Terraloon]

29 minutes ago, DJ Barry Hammond said:

Yeah, some of the stuff he was coming out with felt like “foreshadowing” of what he’d do as an owner of the club.

 

I think that’s the big issue with any potential new owner is that we’re ripe for asset stripping (especially in League One).

 

I doubt we’d get a ‘project / sporting ambition’ style owner because we’d be a very difficult club to get there now given all the financial controls in the way; plus, we’ve already achieved the ultimate most unthinkable goal.

 

We’re not like a Bristol City / Wrexham where just reaching the Premier League is an exceptional achievement for those clubs.

Think you over estimate the value of what assets the club currently owns outright.

In Jan 26 that Aussie firm lodged a charge against the clubs fixed assets . The charge is related to a borrowing facility being put in place. Now we don’t know how much, if any of that facilities been drawn down  nor will the 24/25 year end accounts tell us much more but the rumour was that cash flow is said to have been an issue and the actions re staff pay around Christmas may have been coincidental but there again it may not be !

 

 
Someone would need to take a look at all the paperwork lodged both in the clubs internal accounting records and indeed documents at say Land Registry to fully understand just how well  KP have protected their “ investment “ Because protect it I suspect they almost have. 
 

It will be interesting to see if there has been  any player values impaired in the accounts to 30/6/25. There should be but even then no club is going to go big for any of the current players even the promising academy players won’t bring in close to some of the estimates I have seen some placing on them.

 

The club isn’t cash rich, I am not sure it’s close to asset rich. The current book value of Seagrave of circa £100 m  an asset  that will only have marginal depreciation to date is massively over it’s realistic value and as I said the other day the project was funded by way of a development of £91 loan from KP. We don’t know exactly what loans have been converted to equity but we do know that any outstanding loans can be called in on 12 months notice.

 

 

 

 

 

 

[Corky]

5 hours ago, Stadt said:

Belvoir Drive should be immediately mothballed and regrettably staff that can't be transferred over to Seagrave made redundant, with the women's team moving to Seagrave. Cut the stewarding headcount, bin the flamethrowers, clappers, cut the catering staff headcount. 

 

 

This site is good for looking at the trends 

https://kinnairdsports.com/leicester-city

The amount of money we needlessly waste for no material gain is staggering, way beyond player salaries and managerial pay-offs.

[Stadt]

5 minutes ago, Corky said:

The amount of money we needlessly waste for no material gain is staggering, way beyond player salaries and managerial pay-offs.

If we ran a tight ship we actually could have competed much more fiercely. The fact we got so close as a flabby, cumbersome beast was testament to how brilliant some previous employees were.