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

[Qwerty]

1 minute ago, jayfox26 said:

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? 

Well looking at Sheffield Wednesday, the response is to deduct points. 

[jayfox26]

Just now, Qwerty said:

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

No championship club will pay his wages 

[Qwerty]

Just now, jayfox26 said:

No championship club will pay his wages 

They don’t have to pay him the same as we did though.  I’m sure he’d still go.  I mean, if we said to him “Ok Skipp, you can go to Norwich and they’ll pay you half what we pay, or you can stay here, playing in League 1, and your wages will contribute to the team going bankrupt, and then your wages will be zero”.   
 

Surely all the players will take a pay cut at a championship team in preference to bleeding a league 1 team dry, and getting no wages at all.  

[jayfox26]

1 minute ago, Qwerty said:

They don’t have to pay him the same as we did though.  I’m sure he’d still go.  I mean, if we said to him “Ok Skipp, you can go to Norwich and they’ll pay you half what we pay, or you can stay here, playing in League 1, and your wages will contribute to the team going bankrupt, and then your wages will be zero”.   
 

Surely all the players will take a pay cut at a championship team in preference to bleeding a league 1 team dry, and getting no wages at all.  

You'd like to think so, but most footballers these days think about their bank balance more than their career. 

[funkyrobot]

7 minutes ago, Qwerty said:

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

Maybe only Spurs could pay his £50k pw wage next season in The Championship. 

[Qwerty]

1 minute ago, jayfox26 said:

You'd like to think so, but most footballers these days think about their bank balance more than their career. 

Well they only have to have a chat with the Sheffield Wednesday players, to find out what it’s like when you don’t know from one week to the next if you’re going to be paid.   Footballers have massive egos but they’re not completely stupid.  Imagine the choices.

1) Move to another championship club, earn half what Leicester paid you, but play at a decent level, and maybe do well enough to get promoted, or a move to a PL club (they’re all arrogant enough to think they’re worthy of that).

2) Stay at Leicester to get your big wages.  Play against the likes of Stevenage and Barnsley. Become invisible to bigger teams.  Play for a club that may go bankrupt and not pay you at all. 

[Pliskin]

9 minutes ago, Qwerty said:

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. 

 The best we can hope for is loans. They were all given contracts with no incentives written into them…. We will be making massive losses on them, and then there’s them accepting much lower wages……… I can tell you now Vesty will happily sit on the bench claiming his wedge.

 

You’re naive if you think it will be that easy to shift these players on. And we ain’t receiving good fees for anyone. 

[westernpark]

People will lose jobs in this city as a result.

We should fly the Cambodian flag high and make sure the King Power Group and its friends(Thai government) know they are not welcome.

[blueharmie]

We promote this season 

[Heart-Shaped Fox]

I genuinely think we become a Derby type where they have a few years in L1 or even worse we drop again like Cov and end up in L2. We'll be absolutely broke.

[cropstonfox]

Just now, Heart-Shaped Fox said:

I genuinely think we become a Derby type where they have a few years in L1 or even worse we drop again like Cov and end up in L2. We'll be absolutely broke.

We'll be skint but rid of KP. 

[Guest Jonboy1999]

People need to stop jumping straight to the “administration” talk every time relegation is mentioned. Yes, dropping to League One would obviously be a massive financial hit, but clubs the size of us aren’t automatically on the brink of collapse because of it.

We’ve still got parachute payments, a big fanbase, Premier League infrastructure, and players who would likely be sold if needed to balance things. Plenty of big clubs have gone down to League One and recovered without going into administration.

The bigger issue isn’t just relegation itself – it’s how the ownership and recruitment have been handled over the last few years. That’s what’s put us in this mess. Relegation would hurt badly, but it doesn’t automatically mean the club is about to go bust.

Edited 14 March by Jonboy1999

[GorlestonFox]

22 minutes ago, jayfox26 said:

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? 

Yeah points deductions. 

[grth2004]

3 minutes ago, Heart-Shaped Fox said:

I genuinely think we become a Derby type where they have a few years in L1 or even worse we drop again like Cov and end up in L2. We'll be absolutely broke.

Can we raise some cash and start a new club Leicester Fosse F.C

[Qwerty]

13 minutes ago, Pliskin said:

 The best we can hope for is loans. They were all given contracts with no incentives written into them…. We will be making massive losses on them, and then there’s them accepting much lower wages……… I can tell you now Vesty will happily sit on the bench claiming his wedge.

 

You’re naive if you think it will be that easy to shift these players on. And we ain’t receiving good fees for anyone. 

I disagree.  If there’s one thing that is clear as day, it’s that most of the current team don’t give a shit about relegation, because they know they won’t be around to play in league 1.  Bit like Tielemans when we got relegated from the PL in 2023.   
Footballers want money and status.  In league 1 with a bankrupt team, they’ll have neither.  When that last ball is kicked against Blackburn  on the final day, we won’t see them for dust. 

Edited 14 March by Qwerty

[Pliskin]

2 minutes ago, Jonboy1999 said:

People need to stop jumping straight to the “administration” talk every time relegation is mentioned. Yes, dropping to League One would obviously be a massive financial hit, but clubs the size of us aren’t automatically on the brink of collapse because of it.

We’ve still got parachute payments, a big fanbase, Premier League infrastructure, and players who would likely be sold if needed to balance things. Plenty of big clubs have gone down to League One and recovered without going into administration.

The bigger issue isn’t just relegation itself – it’s how the ownership and recruitment have been handled over the last few years. That’s what’s put us in this mess. Relegation would hurt badly, but it doesn’t automatically mean the club is about to go bust.

Because the overheads are so colossal, league 1 doesn’t allow for such intense losses. 
 

We lose £40m a year just on running costs….out basic outgoings are greater then probably every league one clubs value. 
 

The parachute payments will simply repay loans and make up for the loss in TV revenue. Our wage bill even with those leaving, will be the largest league 1 has ever seen. 
 

We will likely automatically breach the league 1 financial rules and we’re expecting to shift on a bunch of players who we have failed to do so for the last five years? 
 

The club will be loosing far too much money, more money than league one has ever seen. We will be losing far more than we will bring in, at some point our debts will surpass the value of the club. 
 

Administration is inevitable for me, we will operating as a premier league club financially on the third tier of English football. 
 

It will likely only end one way. 

[FoxFossil]

1 hour ago, CPepFox said:

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. 

Adminstrators would immediately mothball it, and then it goes for a fire sale auction. Suggestion is it costs £20m a year so if Administrators job is to try and find a buyer for the club, and to do that expenses need to be less than income,  Seagrave surely would be the first red highlighted item on the balance sheet. Worry is that Top wants his money back, which is the problem at Sheffield Wednesday, frightening off any buyers for the club. What I don't understand is that as King Power is basically in Administration, and Top was moved from that, why King Power haven't sought a buyer for LCFC.

Edited 14 March by FoxFossil

[Blue ROI]

KPFC loyalists will tell us to clap 

 

But Harder and Louder.

[Guest Jonboy1999]

5 minutes ago, Pliskin said:

Because the overheads are so colossal, league 1 doesn’t allow for such intense losses. 
 

We lose £40m a year just on running costs….out basic outgoings are greater then probably every league one clubs value. 
 

The parachute payments will simply repay loans and make up for the loss in TV revenue. Our wage bill even with those leaving, will be the largest league 1 has ever seen. 
 

We will likely automatically breach the league 1 financial rules and we’re expecting to shift on a bunch of players who we have failed to do so for the last five years? 
 

The club will be loosing far too much money, more money than league one has ever seen. We will be losing far more than we will bring in, at some point our debts will surpass the value of the club. 
 

Administration is inevitable for me, we will operating as a premier league club financially on the third tier of English football. 
 

It will likely only end one way. 

I get why people are panicking, but let’s be real. Yes, the overheads are huge for League One, but parachute payments exist for exactly this reason. They’re still far bigger than what any normal League One club earns.  
 

We’ve also got valuable players, a stadium, commercial deals and a huge fanbase — selling a few players would cover a lot of losses. Wage cuts and squad changes happen every time a club drops a division.  

Relegation would hurt badly, but administration isn’t inevitable. People are overreacting.

[Sol thewall Bamba]

I genuinely think we'll get wound up. We won't have the turnover to cover the overheads.

[FoxFossil]

4 minutes ago, Sol thewall Bamba said:

I genuinely think we'll get wound up. We won't have the turnover to cover the overheads.

Think the term is 'not a going concern'. Does anyone know if its illegal to continue trading in that situation?

[Pliskin]

1 minute ago, Jonboy1999 said:

I get why people are panicking, but let’s be real. Yes, the overheads are huge for League One, but parachute payments exist for exactly this reason. They’re still far bigger than what any normal League One club earns.  
 

We’ve also got valuable players, a stadium, commercial deals and a huge fanbase — selling a few players would cover a lot of losses. Wage cuts and squad changes happen every time a club drops a division.  

Relegation would hurt badly, but administration isn’t inevitable. People are overreacting.

As far as I’m aware the parachute payments are up on the summer, so that will only go on the losses the club will endure. And they won’t really help us at all. 
 

We don’t have valuable players at all….. they’re all on colossal wages and their values diminished significantly, our most valuable player is probably Fatawu, and his worth will be about £5-10m now. 
 

This idea we’re going to offload a load of players and recoup the losses is nonsense, we won’t…. Wages won’t be cut, because the contracts won’t account for relegation. Just over a month so ago Top was talking about play offs…. So you think they’ve got relegation clauses to league 1 written into their contracts? 
 

This is not an overreaction at all, no club has ever been in league one with our financial output, much lesser clubs have nearly gone bust and they haven’t had anywhere near the outgoings we have….

 

We lose £40m every year as standard….. £40m….. that’s colossal…….

 

No club in modern football has collapsed like this, it’s unprecedented.

[Sol thewall Bamba]

10 minutes ago, Jonboy1999 said:

I get why people are panicking, but let’s be real. Yes, the overheads are huge for League One, but parachute payments exist for exactly this reason. They’re still far bigger than what any normal League One club earns.  
 

We’ve also got valuable players, a stadium, commercial deals and a huge fanbase — selling a few players would cover a lot of losses. Wage cuts and squad changes happen every time a club drops a division.  

Relegation would hurt badly, but administration isn’t inevitable. People are overreacting.

The parachute payments go straight to the Aussie bank to pay off the loans King Power took out on our behalf. 

 

The money doesn't even hit our bank account.

[Wasyls Pec Deck]

People who think relegation will mean KP will more likely go - is there any evidence for that? Aiyawatt is too stupid to realise this is all beyond him. 

[Guest Jonboy1999]

3 minutes ago, Sol thewall Bamba said:

The parachute payments go straight to the Aussie bank to pay off the loans King Power took out on our behalf. 

 

The money doesn't even hit our bank account.

Just to be clear — parachute payments do go to the club. Yes, some of that money might be used to service loans the owners put in place, but it’s still the club’s income. It’s not “skipping” Leicester entirely — it’s exactly what keeps a relegated club from collapsing overnight. People are exaggerating how useless parachute payments are.