Implications of relegation to league 1 (Mods can we condense all league 1 threads into one)

[Pliskin]

I thought I would start a thread to bring all of the various conversations about the implications of relegation to league 1. 
 

This is to be less jovial and more concentrating on the facts, and if we can work out just how dangerously close we are to situations such as administration.  

[phoneticerror]

Just now, Pliskin said:

I thought I would start a thread to bring all of the various conversations about the implications of relegation to league 1. 
 

This is to be less jovial and more concentrating on the facts, and if we can work out just how dangerously close we are to situations such as administration.  

Administration is risky, but it might be the only way Top will leave.

[Bob Weasel Fox]

I genuinely think we will fold as a club if we go down

[Nolucklcfc]

2 minutes ago, Bob Weasel Fox said:

I genuinely think we will fold as a club if we go down

The fact that they are still actively trying to employ people suggests they haven’t done any forward planning. 

[CPepFox]

We fall out of the championship and I can see the club folding within 2 years. No way the club can afford the players, practice facilities, training and support staff and the upper management. It's absolutely crazy how poorly this club has been mismanaged and criminal that serious changes have NOT been made already

[Bezzanator89]

Seagrave gets mothballed.

Academy gets downgraded.

Women's team may well be sadly mothballed.

Administration beckons and points deduction.

Squad will only consist of homegrown players and others that no-one else wants.

 

The club's very existence dances on a knife-edge if we don't go back up at first time of asking.

 

But despite all this, without seeing the future, I can personally guarantee that Top will not leave. We are on the brink of a new apocalyptic phase. #phoenixclub

[Lineker's Left Foot]

I would support the new Phoenix club, even if it was akin to FC United of Manchester as I can’t see Top ever selling!

[Qwerty]

9 minutes ago, CPepFox said:

We fall out of the championship and I can see the club folding within 2 years. No way the club can afford the players, practice facilities, training and support staff and the upper management. It's absolutely crazy how poorly this club has been mismanaged and criminal that serious changes have NOT been made already

Presumably we’d sell Seagrave before folding?  

[sdb]

14 minutes ago, Bob Weasel Fox said:

I genuinely think we will fold as a club if we go down

At this point I wouldn't care. Save a lot of pain and wasted hope in the long run. 

[fox_favourite]

Administration by the end of the year, or the club folds riddled with debt. 

 

We will be the warning for all clubs in the future on not what to do.

Edited 14 March by fox_favourite

[CPepFox]

4 minutes ago, Qwerty said:

Presumably we’d sell Seagrave before folding?  

Can only sell if there is interest. This is a scary position to be in. And how big a loss can be had on Seagrave before it bankrupts the club? I don't know, so my question is genuine. 

[DDub]

17 minutes ago, Nolucklcfc said:

The fact that they are still actively trying to employ people suggests they haven’t done any forward planning. 

It’s not surprising given that there seems to be very few, if any, relegation clauses in players contracts. The only planning they seem to be able to do is that which makes the club worse. 

[john ridley]

How many league 1 clubs have 2 training  grounds and numerous  players on 40/50  grand aweek and survive?No i couldn't think of any either. 

[HoChiMinhFOX]

What are runnings costs of seagrave alone?

[inckley fox]

26 minutes ago, Bob Weasel Fox said:

I genuinely think we will fold as a club if we go down

If it's going to go, let it go quickly. Unite behind the phoenix club and, whatever tier it is, we'll have a club which is more Leicester City than this one is five years from now. Fosse was wound up in 1919. In time, it'd be seen as no more significant than that to us. In the meanwhile, the political impact on the game as a whole would be seismic, and possibly very positive.

 

You even get to inherit the trophies if there's consensus on the successor club. As I see it, that club might get back to the PL in 12-15 years, whereas this one might need longer than that.

 

My only fear is that you end up with a situation like Hinckley AFC / Hinckley Leicester Road, with the KPFC lot disputing which is the 'real' new LCFC, instead of just admitting they were wrong and ****ing off.

[Blue ROI]

Internal review.

 

Results of which keep the status quo intact as they did absolutely nothing wrong whatsoever. 

 

We promote Rudkin.

Edited 14 March by Blue ROI

[Pliskin]

I just can’t see anything other than a complete financial collapse. The sheer outgoings, TV deals falling off a cliff and there’s the more strict league one rules, meaning we will be financial turmoil and we will have one hand tied behind our backs anyway. 
 

Any saleable asset he drastically reduced, and we will still have issues getting the high earners off the wage bill. It’s when all of these horrific decisions finally come to bite us on the arse. 

[Qwerty]

16 minutes ago, Pliskin said:

I just can’t see anything other than a complete financial collapse. The sheer outgoings, TV deals falling off a cliff and there’s the more strict league one rules, meaning we will be financial turmoil and we will have one hand tied behind our backs anyway. 
 

Any saleable asset he drastically reduced, and we will still have issues getting the high earners off the wage bill. It’s when all of these horrific decisions finally come to bite us on the arse. 

I honestly can’t see a single high earner staying in league 1.  They’ll all want to go. Our highest paid player will be Luke Thomas, who surely can’t be on much. 

[Pliskin]

3 minutes ago, Qwerty said:

I honestly can’t see a single high earner staying in league 1.  They’ll all want to go. Our highest paid player will be Luke Thomas, who surely can’t be on much. 

They might want to go, but what if they get no offers! We can’t just release a bunch of players under contract. 

[jayfox26]

57 minutes ago, Bezzanator89 said:

Seagrave gets mothballed.

Academy gets downgraded.

Women's team may well be sadly mothballed.

Administration beckons and points deduction.

Squad íiuuwill only consist of homegrown players and others that no-one else wants.

 

The club's very existence dances on a knife-edge if we don't go back up at first time of asking.

 

But despite all this, without seeing the future, I can personally guarantee that Top will not leave. We are on the brink of a new apocalyptic phase. #phoenixclub

I dont see how we can get promoted from league 1, as we'll no doubt get another points deduction, potentially much bigger than the one this season, as it will be impossible for us to stay in line with the league 1 wage cap with the state of our wage bill. We will lose some players in the summer but nobody is taking the likes of Skipp and Ayew who are obscene wages. I honestly think we'll go bust 

[Gamble92]

It'll be horrible but we will get bought if it goes into administration. It's going to be a really shit time though. 

[Qwerty]

3 minutes ago, Pliskin said:

They might want to go, but what if they get no offers! We can’t just release a bunch of players under contract. 

They’ll get offers, and they’ll push for moves.  We’ll be desperate to sell, and other teams will get bargains.  Can you think of a single highly paid player who will be prepared to play in league 1, especially if there’s a risk of administration?   I think even Vestergaard will want to go, and he’s someone who doesn’t like moving house!!  I don’t think wages will be an issue. 

[jayfox26]

Is there precedence at any point for the FA/EFL to step in when a club is clearly being ran into the ground and is at serious risk of going bust? 

[Qwerty]

1 minute ago, jayfox26 said:

I dont see how we can get promoted from league 1, as we'll no doubt get another points deduction, potentially much bigger than the one this season, as it will be impossible for us to stay in line with the league 1 wage cap with the state of our wage bill. We will lose some players in the summer but nobody is taking the likes of Skipp and Ayew who are obscene wages. I honestly think we'll go bust 

Skipp has been pretty good this season, and will be picked up by another championship club.  

[ozvaldo]

From what I’ve read, in League 1 we can spend 60% of our annual revenue on players wages. 
 

Revenue obviously falls off a cliff, but we should have a 2nd year of Premier League parachute payments. (Although, if we’ve already borrowed money against this future payment, does that effectively null and void it?). If so, revenue will be incredibly tight. 
 

In terms of having players like Winks on £90k/week, we obviously cannot afford him. But I’m assuming there is zero plan for what happens to his salary when we go down. No other club in their right mind will pay him north of £50k/week, so if he does go for a small fee, we’d probably still have to top up his balance salary? 
 

Honestly, this is such a ****ing mess and I am staggered at the number of fans who refuse to hear a bad word said against King Power. 
 

How does a Phoenix Club actually work?  What league does it start in?