Leicester City For Sale (Ongoing Thread)

[em9999]

4 hours ago, Kasey Keller said:

definitely and before Christmas if not sooner 

We aren't heading into administration.. its all noise 

[Sly]

No one buys as at £200,000,000.

 

They’d be purchasing a property management company that has a football stadium playing in it. 

[Claudio Fannieri]

12 hours ago, Paninistickers said:

Not sure that's correct. I think the ownership - to huge surprise -  deposited the money into the bank account at the start of the season (the statement says as much) to cover the shortfall and comply with the financial rules. 

 

Surprising? Hugely. 

 

But the club went up for sale immediately after. As has been pointed out, the cash injection is from the family's view a necessary evil. And the conversion to equity is window dressing. That's not a criticism by the way. It's another (all too rare) logical business manoeuvre (similar to rejecting money for Louis Page - he's worth more as an asset than he was as a cash injection) 

 

 

But that was well before the window closed and at that point I expect we were still bullish about selling the likes of Coulibaly, Faes, Nelson (until his injury), Okoli and Souttar. Whilst the fees may have funded removing debt, liabilities and signing replacements, I am not sure any projections at that stage would have forecast us carrying a further £125k or over £500k per month in wages, bonuses and NI etc  for these players. 
 

Up to Christmas that is at least a further £2m in cash that the club has to find and pay out to keep the wolf from the door. It is cash flow or a severe lack of it that will take us into administration.

 

Reduced income, increased costs are issies that even the best cash flow projections miss, any unforeseen event or circumstance will impact and if things are tight and built on sunny day, blue sky forecasts then it is all going to unravel pretty quickly when the clouds appear and £125k per week is a very big dark cloud. 

[fkas]

2 hours ago, Claudio Fannieri said:

But that was well before the window closed and at that point I expect we were still bullish about selling the likes of Coulibaly, Faes, Nelson (until his injury), Okoli and Souttar. Whilst the fees may have funded removing debt, liabilities and signing replacements, I am not sure any projections at that stage would have forecast us carrying a further £125k or over £500k per month in wages, bonuses and NI etc  for these players. 
 

Up to Christmas that is at least a further £2m in cash that the club has to find and pay out to keep the wolf from the door. It is cash flow or a severe lack of it that will take us into administration.

 

Reduced income, increased costs are issies that even the best cash flow projections miss, any unforeseen event or circumstance will impact and if things are tight and built on sunny day, blue sky forecasts then it is all going to unravel pretty quickly when the clouds appear and £125k per week is a very big dark cloud. 

Any competent accountant would have prepared cashflow forecasts with various scenarios, including worst case and having to hold onto some of the high paid stars.

 

We seem to have generally gone with acquisitions coming in as deadwood was cut loose so there's a fair chance we weren't surprised by having to hang onto Okoli and Faes.

[DJ Barry Hammond]

10 hours ago, Blanchflower78 said:

Were heading for administration aren't we... 

 

This would be a strange outcome for the near future considering the club has signed several players for significant transfer fees over the last couple of months.

 

That muted summer transfer budget of £10 million back at the start of the window sounds about right - well you’re not shelling those sums if administration is close.

 

It is also be notable that the reported £8.5 million debt clearance/equity swap (funding injection) by King Power is a lot lower than previous ones; that might suggest the clubs annual operating losses up to the point of last season had become more manageable; but we’ll need the clubs accounts to confirm that.

Edited 13 hours ago by DJ Barry Hammond

[VLC86]

8 minutes ago, DJ Barry Hammond said:

 

This would be a strange outcome for the near future considering the club has signed several players for significant transfer fees over the last couple of months.

 

That muted summer transfer budget of £10 million back at the start of the window sounds about right - well you’re not shelling those sums if administration is close.

 

It is also be notable that the reported £8.5 million debt clearance/equity swap (funding injection) by King Power is a lot lower than previous ones; that might suggest the clubs annual operating losses up to the point of last season had become more manageable; but we’ll need the clubs accounts to confirm that.

I suspect it more likely reflects that they want to sell very quickly, and that’s probably an amount to keep the lights on for a few months and avoid any penalties for missing payments etc. I’d be very very shocked if our losses were close to £8.5m.

[Pliskin]

4 hours ago, em9999 said:

We aren't heading into administration.. its all noise 

We will be in administration at some point this season. 

[trooky]

11 minutes ago, Pliskin said:

We will be in administration at some point this season. 

Agree, I heard on talksport this morning from Alex Crook that the club is charging players £80 a night to stop at the Seagrave hotel before match days. 

 

Anybody interested in buying this club would wait until we're in admin to buy at a cheaper price. 

[ARM1968]

Exactly what I’ve been saying. We’re essentially done. Nobody is paying £200 million for an echo. You pay for the here and now and that’s worth FA. 

[Pliskin]

Any yet, people still support “the family”…… 

[Tommy G]

27 minutes ago, VLC86 said:

I suspect it more likely reflects that they want to sell very quickly, and that’s probably an amount to keep the lights on for a few months and avoid any penalties for missing payments etc. I’d be very very shocked if our losses were close to £8.5m.

Nothing to do with keeping the lights on, KP are swapping money owed to them for equity, there is no cash changing hands here, its effectively a paper transaction. Given it's money owed to a parent co they won't have typical debt type installments that you get with external lenders. 

[Tommy G]

13 minutes ago, ARM1968 said:

Exactly what I’ve been saying. We’re essentially done. Nobody is paying £200 million for an echo. You pay for the here and now and that’s worth FA. 

Just because the rumoured asking price is £200m doesn't mean it won't be sold for a lot less - it will all depend on two factors,  the amount of serious people interested, and the appetite for KP to sell at a lower price (likely). They might accept £50m? But you wouldn't market it at that, you would market it at the largest number you could get away with, knowing you will be talked down on that number. 

 

I don't understand why people can't see or grasp this.  

[teblin]

The administration thing, even though I agree it is a very realistic risk. Doesn't make sense that it is that imminent as we have been spending money on players this month. (Riis I believe was a  7 figure sum).

 

Though that is me assuming that they are not even more stupid than they have already proved they are I guess.

[AjcW]

1 hour ago, Tommy G said:

Just because the rumoured asking price is £200m doesn't mean it won't be sold for a lot less - it will all depend on two factors,  the amount of serious people interested, and the appetite for KP to sell at a lower price (likely). They might accept £50m? But you wouldn't market it at that, you would market it at the largest number you could get away with, knowing you will be talked down on that number. 

 

I don't understand why people can't see or grasp this.  

Think you’re overestimating a large percentage of our fanbase, I’ve sat next to plenty who look like they can’t work the taps on a shower. 

Edited 11 hours ago by AjcW

[Tommy G]

45 minutes ago, fkas said:

Any competent accountant would have prepared cashflow forecasts with various scenarios, including worst case and having to hold onto some of the high paid stars.

 

We seem to have generally gone with acquisitions coming in as deadwood was cut loose so there's a fair chance we weren't surprised by having to hang onto Okoli and Faes.

After the year end we would also have to do some serious work around going concern for the auditors to sign off the accounts, this is tricky piece of work for even a profitable company with long term agreements. Gone are the days of auditors signing off accounts without some serious reassurances around going concern for 12 months +

 

The audit world has changed massively since covid, PwC aren't going to want their name all over the news if it goes tits up as it will be high profile. 

[trooky]

15 minutes ago, teblin said:

The administration thing, even though I agree it is a very realistic risk. Doesn't make sense that it is that imminent as we have been spending money on players this month. (Riis I believe was a  7 figure sum).

 

Though that is me assuming that they are not even more stupid than they have already proved they are I guess.

I think this is all some stupid poker bluff by Top to present the club as a viable going concern and protect his asset to get the best price possible. 

 

Any potential buyer, unless they're a die-hard life long Leicester fan, would wait until we go into admin and buy us then. 

 

 

[st albans fox]

39 minutes ago, Tommy G said:

Nothing to do with keeping the lights on, KP are swapping money owed to them for equity, there is no cash changing hands here, its effectively a paper transaction. Given it's money owed to a parent co they won't have typical debt type installments that you get with external lenders. 

Yes it’s a paper transaction but it does apparently link back to that sum actually being loaned in a month or so ago. 
 

the obvious question is why the loan wasn’t converted to equity immediately.
 

there are multitude of answers

 

one could be that it was a ‘cash flow bridging loan’

expected income didn’t then materialise via player sales and the loan was therefore unable to be repaid. Rather than leaving this additional debt on the balance sheet, KP decided to convert to equity. 
 

[Manwell Pablo]

47 minutes ago, Tommy G said:

Just because the rumoured asking price is £200m doesn't mean it won't be sold for a lot less - it will all depend on two factors,  the amount of serious people interested, and the appetite for KP to sell at a lower price (likely). They might accept £50m? But you wouldn't market it at that, you would market it at the largest number you could get away with, knowing you will be talked down on that number. 

 

I don't understand why people can't see or grasp this.  

it’s still too high even as a simple list of assessts in the absence of any reasonable starting point. 

[Stadt]

52 minutes ago, Tommy G said:

After the year end we would also have to do some serious work around going concern for the auditors to sign off the accounts, this is tricky piece of work for even a profitable company with long term agreements. Gone are the days of auditors signing off accounts without some serious reassurances around going concern for 12 months +

 

The audit world has changed massively since covid, PwC aren't going to want their name all over the news if it goes tits up as it will be high profile. 

Did Wednesday’s auditors sign off on their accounts? Not being flippant, genuinely asking 

[davieG]

1 hour ago, Tommy G said:

Just because the rumoured asking price is £200m doesn't mean it won't be sold for a lot less - it will all depend on two factors,  the amount of serious people interested, and the appetite for KP to sell at a lower price (likely). They might accept £50m? But you wouldn't market it at that, you would market it at the largest number you could get away with, knowing you will be talked down on that number. 

 

I don't understand why people can't see or grasp this.  

Obviously never tried to sell a car etc privately

[ClaphamFox]

11 minutes ago, trooky said:

I think this is all some stupid poker bluff by Top to present the club as a viable going concern and protect his asset to get the best price possible. 

 

Any potential buyer, unless they're a die-hard life long Leicester fan, would wait until we go into admin and buy us then. 

 

 

Well that would be a risky strategy given that administration comes with a 12-point deduction and would likely kill our chances of getting promoted this season—which could potentially set us back much further given the likelihood of a forced fire sale next summer. Surely any buyer will want us to get back to the Championship asap?

There is currently a lot of noise about administration, but that's all it is—noise. Our latest set of accounts disclosed that the club has access to an undrawn £10m of a five-year loan facility with the KP Group and a further £116m of an undrawn equity-funding mechanism to support cash flow in a 'severe downside scenario'. In other words, the club has already included a provision to keep us going through to the end of this season at least. Our recent player acquisitions and the £8.5m debt-to-equity conversion are entirely consistent with that. So I'm curious to know exactly what these "admin by Christmas" claims are based on.

[Tommy G]

40 minutes ago, Stadt said:

Did Wednesday’s auditors sign off on their accounts? Not being flippant, genuinely asking 

Yes by Sedulo whoever they are!

 

By the looks if it in his strategic report he's provided a formal letter of support the effectively keep the club liquid, seems this wen't very south very quickly!! This isn't ever a good paragraph to have in your accounts.

 

[UniFox21]

16 minutes ago, ClaphamFox said:

Well that would be a risky strategy given that administration comes with a 12-point deduction and would likely kill our chances of getting promoted this season—which could potentially set us back much further given the likelihood of a forced fire sale next summer. Surely any buyer will want us to get back to the Championship asap?

There is currently a lot of noise about administration, but that's all it is—noise. Our latest set of accounts disclosed that the club has access to an undrawn £10m of a five-year loan facility with the KP Group and a further £116m of an undrawn equity-funding mechanism to support cash flow in a 'severe downside scenario'. In other words, the club has already included a provision to keep us going through to the end of this season at least. Our recent player acquisitions and the £8.5m debt-to-equity conversion are entirely consistent with that. So I'm curious to know exactly what these "admin by Christmas" claims are based on.

Looks solely like the suggestion is a mixture of us fearing the worst, given everything keeps going to shit, and Ben Jacobs reporting if a sale isn't sorted in the near future we will be looking at going into administration 

[davieG]

Leicester City truth revealed over viral claim players have to pay to stay at club's own hotel | Leicestershire Live

 

Brian Dick Reach Football Correspondent
10:10, 16 Sep 2026
Leicester City players have to pay to stay at the club’s training ground – on nights they choose to stay, LeicestershireLive understands.

However, Russell Martin’s men are not charged for nights on which they are required to remain at Seagrave.

The new information obtained by LeicestershireLive comes after a report by talkSPORT that players were having to pay £80 a night just to sleep in the hotel at their £100million training base.

The move is part of a drive to encourage City players to live closer to the club rather than spend hours on a daily commute.

[Gravel]

2 hours ago, AjcW said:

Think you’re overestimating a large percentage of our fanbase, I’ve sat next to plenty who look like they can’t work the taps on a shower. 

I've sat next to a few who smell like they can't either