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

[Pliskin]

Just now, 1969 said:

When you’ve sold - do you want to buy a training ground on the cheap? Asking for a friend.

Has it got a herb garden? 

[Enyoueffsea]

4 minutes ago, 1969 said:

Sell it to who? Seagrave I mean?

 

KP could buy it and lease it back to the club. Again, not ideal at all and keeps them invested for longer. See Chelsea and their various sales, although those are to bend FFP rules rather than keep them in business.

 

On a more optimistic view, there are plenty of property investors who will throw their money into it to make an easy return. Problem for you would be the longer term consequence and cost of buying it back.

[1969]

1 minute ago, Pliskin said:

Has it got a herb garden? 

Yea and the good news is that you will be able to secure a loan against the herb garden so that you don’t have to put any money in yourself to pay for the compost!

[1969]

Just now, Enyoueffsea said:

 

KP could buy it and lease it back to the club. Again, not ideal at all and keeps them invested for longer. See Chelsea and their various sales, although those are to bend FFP rules rather than keep them in business.

 

On a more optimistic view, there are plenty of property investors who will throw their money into it to make an easy return. Problem for you would be the longer term consequence and cost of buying it back.

Unless king power pay real cash for it then that won’t help cash flow? Also I’m not sure how the PSR rules work in League 1 but in the championship you can’t sell an asset  to yourself to improve PSR like some clubs have done in the premier league.

[Juan Carrito]

28 minutes ago, Jonboy1999 said:

Exactly — even if the club borrowed the parachute payments upfront, the money still goes into Leicester’s accounts first. The club then pays the loan back. It’s just basic accounting — the money doesn’t skip the club entirely like some people are saying.

This isn't right. If you look at the Charge registered on Companies House you'll see we've assigned all our rights to the income and (at section 6.8) it is entirely at the bank's discretion as to whether they get paid directly by the PL. We will not see that money in our accounts. 

 

The club's strategy has been to sell future income at a discount to fund today's expenses. That might make sense for transfer fees but we have seemingly done it for parachute payments and tv money too. If we take out parachute payments and tv money from next year's income we're left with player sales (not much resale value and we're a desperate seller), season ticket sales (can't see that going brilliantly) and sponsorship (we struggled to get a sponsor in the Championship). 

 

There is going to be a huge financial crunch next year unless the owner is willing/able to inject enormous amounts of cash. 

[Blue.Fox84]

Stay up in the championship, it’s likely to be difficult and we spend a few years there but the club should hopefully be able to rebuild - if in the right pair of hands 

 

Relegation to League One and the club surely goes into administration. X2 training grounds, a stadium that will barely see more than 20k attendance, women’s side and Cat 1 academy before you even think about players wages and non staff. There is every chance we’ll have to lose our Cat 1 status which will be a huge loss and set the club back massively! People arguing that if we get relegated then we can depend on youth coming through, those players will leave soon as that status has been lost, any up and coming talent no longer prioritise LCFC and we start to pick up the scraps that other teams around the midlands don’t want. 
 

A huge selling point of Seagrave was to apparently recruit and nurture the best talent in the midlands, our whole approach has been and will be ripped apart. Players, coaches and scouts will be lost, anything that’s being built at younger ages are in risk of being lost just as much as any quality we can wish to see playing in the first team from next season. Don’t be surprised to see more youth players awarded contracts before the season ends in a desperate attempt to either keep them for next season or as an asset to sell before they walk out the door for free (hopefully anyways) 

[AjcW]

Just realised @Jonboy1999 is replying using pretty much entirely AI responses which is a bit odd… 

[1884HF]

2 minutes ago, Blue.Fox84 said:

Stay up in the championship, it’s likely to be difficult and we spend a few years there but the club should hopefully be able to rebuild - if in the right pair of hands 

 

Relegation to League One and the club surely goes into administration. X2 training grounds, a stadium that will barely see more than 20k attendance, women’s side and Cat 1 academy before you even think about players wages and non staff. There is every chance we’ll have to lose our Cat 1 status which will be a huge loss and set the club back massively! People arguing that if we get relegated then we can depend on youth coming through, those players will leave soon as that status has been lost, any up and coming talent no longer prioritise LCFC and we start to pick up the scraps that other teams around the midlands don’t want. 
 

A huge selling point of Seagrave was to apparently recruit and nurture the best talent in the midlands, our whole approach has been and will be ripped apart. Players, coaches and scouts will be lost, anything that’s being built at younger ages are in risk of being lost just as much as any quality we can wish to see playing in the first team from next season. Don’t be surprised to see more youth players awarded contracts before the season ends in a desperate attempt to either keep them for next season or as an asset to sell before they walk out the door for free (hopefully anyways) 

its this terrifying future that people don't understand awaits us

 

[1884HF]

2 hours ago, Qwerty said:

Presumably we’d sell Seagrave before folding?  

it will be sold to forest ffs how humiliating

[1884HF]

2 hours ago, inckley fox said:

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.

its so fxcking scary Jesus Christ

[HP1]

8 minutes ago, AjcW said:

Just realised @Jonboy1999 is replying using pretty much entirely AI responses which is a bit odd… 

The names Jonboy.....Jonboy Rudkin

[john ridley]

5 minutes ago, 1884HF said:

its this terrifying future that people don't understand awaits us

 

Try telling that to Top and Rudkin. 

[Pita]

We will go bust most likely by Christmas 

[Blue.Fox84]

8 minutes ago, 1884HF said:

its this terrifying future that people don't understand awaits us

 

It really is depressing. It feels like some still think were some fairytale that repercussions won’t affect us, maybe it’s because we’ve been in League One before too 🤷‍♂️

 

The club is in a completely different position and the way football clubs operate is on a completely different level to what it was 20 years ago.
 

Id fear the worse even with new owners due to the restrictions they’ll be dealt but with this current group of crooks it feels we are blindly walking into extinction 

[CPepFox]

54 minutes ago, 1969 said:

Yea and the good news is that you will be able to secure a loan against the herb garden so that you don’t have to put any money in yourself to pay for the compost!

That's what Vestergaards dogs are providing... thus why he had to have them at Seagrave!!! Rudkin needs to list both Vesty and the dogs as tax write offs and the books will be fine!!!

[Dan]

I will laugh in the face of every KPFC loyalist. Their pain will make this bearable to me.

[Manc Fox J]

4 hours ago, Qwerty said:

Presumably we’d sell Seagrave before folding?  

To who? For what commercial purpose could a mega training facility in the Leicestershire Wolds be of any use to any organisation?

[Manwell Pablo]

4 hours ago, Qwerty said:

Presumably we’d sell Seagrave before folding?  

 

To who, and more importantly even if you can answer that, how quickly. 

 

Do you have any idea who hard it is to sell a 100 million pound purpose built football training ground that is one of the best in the country, not exactly in a prime location to attract a lot of tourism, in a County that has one professional football team. 

 

 

[Manwell Pablo]

7 minutes ago, Manc Fox J said:

To who? For what commercial purpose could a mega training facility in the Leicestershire Wolds be of any use to any organisation?

Beat me to it.

[kingfox]

Sammy Braybrooke bossing the midfield against Bromley

Local derby against Mansfield 

Signing free agents from teams like Kilmarnock 

 

Bring it on!

[Manwell Pablo]

1 minute ago, kingfox said:

Sammy Braybrooke bossing the midfield against Bromley

Local derby against Mansfield 

Signing free agents from teams like Kilmarnock 

 

Bring it on!

 

I take it you've not been to Mansfield Gavin. 

[Driver]

 

[Aussie Flash]

We do not get third division matches on TV here in Aus. so I will not have the 

pleasure of swearing at the TV. 

It has been obvious since the first relegation from the premier league that the club was  selling its best players to cover debts to the point the club is left with over payed players nobody wants . 

The club is bankrupt and I suspect in the current climate of rich organisations owning clubs there will be nobody queing up to buy the club .

As a 7 year old watching my first game live with my uncle in 1952 did I think the club would drop to the levels of despair  most supporters now feel.

As a professional  contract  engineer I have work in a few organisations with incompetant management . I all case the management  could not see the company problems were caused by them.

Leicester City FC   RIP

 

 

[kingfox]

14 minutes ago, Manwell Pablo said:

 

I take it you've not been to Mansfield Gavin. 

“Manwell Pablo quoted you in a topic”

[fox_favourite]

Oh those who think administration will be good, well look at Sheffield Wednesday. If, at best, we do go into administration then league 2 is very highly likely. -15pts and probably more as that is what govern bodies like to do. 

 

Nothing about being relegated is a good thing. We're rebuilding in a poor league at best. Going from having players like Maddison, Mahrez, Tielemens and co to having players from Dundee Utd and getting loan players from Oxford and Blackburn is a reality. 

 

This is the death of the club right in front of our eyes. People who clapped that yesterday at the end are delusional and accepting that they'll have to support Cov or forest to see any good standard of football for the foreseeable future. Or telling people the story of a club you once supported called Leicester city.

 

"You see that stadium over there that has been abandoned for years? Well, let me tell you a story of a team that shocked the world then disappeared all in 10 years!"

Edited 15 March by fox_favourite