Unnamed Middle Eastern firm hold interest in buying Leicester City

[Tommy G]

Any kind of buyer will be in the headspace that they can pick up a club with good history, a world class training ground and relatively modern stadium off an owner who has an appetite to sell due to his own financial situation and the substantial sunk costs King Power have lobbed in (~£500m) 

 

At the right price there will be a few investors that can make a turn here, let’s say he gets £150m- £200m for it, should we get near the PL again you could 2.5x that price quite easily  - it will probably need a further £150m investment along the way but there is a pathway to a decent exit value and I’m guessing this is how citigroup will position it. If it wasn’t leaked in the press that it was Middle East interest this would of been perfectly lined up for private equity.
 

Lets assume it’s a Middle East investor they will see this as a bargain rather than an oven ready PL club - who will all demand top money with no real ability to grow the value of the club due to PSR restrictions. 

[MPH]

59 minutes ago, Scotch said:

I'm not sure exactly what type it is but he's has been reported to be getting cancer treatment fo some time now. 

 

brain cancer. He’s been battling it since 2015.. it’s allegedly worsening and he could be incapacitated by 2028-29 is what is being estimated 

[Ric Flair]

9 minutes ago, Tommy G said:

Any kind of buyer will be in the headspace that they can pick up a club with good history, a world class training ground and relatively modern stadium off an owner who has an appetite to sell due to his own financial situation and the substantial sunk costs King Power have lobbed in (~£500m) 

 

At the right price there will be a few investors that can make a turn here, let’s say he gets £150m- £200m for it, should we get near the PL again you could 2.5x that price quite easily  - it will probably need a further £150m investment along the way but there is a pathway to a decent exit value and I’m guessing this is how citigroup will position it. If it wasn’t leaked in the press that it was Middle East interest this would of been perfectly lined up for private equity.
 

Lets assume it’s a Middle East investor they will see this as a bargain rather than an oven ready PL club - who will all demand top money with no real ability to grow the value of the club due to PSR restrictions. 

You know better than I but I struggle to see where the value is in us, whilst we aren't a normal League One club. No club at that level or even Championship fodder are worth £150m + 

 

I think the training ground is such a ghostly asset, it's more of a burden than a positive but KP would need/want a massive figure to sell which is why I don't think it happens and instead will be admin eventually in the next 18 months. 

 

 

[Tommy G]

3 minutes ago, Ric Flair said:

You know better than I but I struggle to see where the value is in us, whilst we aren't a normal League One club. No club at that level or even Championship fodder are worth £150m + 

 

I think the training ground is such a ghostly asset, it's more of a burden than a positive but KP would need/want a massive figure to sell which is why I don't think it happens and instead will be admin eventually in the next 18 months. 

 

 

I’m plucking figures out the air a bit but I’m assuming they will want that kind of number given the training ground and stadium, we will claim to attribute some value to the playing squad plus they can dream up a figure of what “brand lcfc” is worth. 
 

It will go for significantly less than the ~£500m they have lobbed in and their advisors will tell them it’s better to get something than nothing, which is where we could be heading as you say. 

[Jattdogg]

2 hours ago, MPH said:

Now I want to apologize firstly for the pandemonium this post has the potential to cause. Let me be sure, this is the apology, ok?   

 

 

 

back in May 20206, Turki AlalShikh announced he was looking into the possibility of buying an English football club.

There have been some rumors he was in talks about investing in Derby County and that there was currently a due diligence process going on with regards to his suitability as an owner of an English football club.

 

 

 

just leaving that there…..

Are you a time traveler come back to let us know that KP finally agreed to sell us whilst we were in the 18th tier of the scottish football league? We are so back baby! What a time to be alive!  Is Infantino still running FIFA and are Argentina still ****s?

 

 

[Manwell Pablo]

59 minutes ago, Brizzle Fox said:

Nope. I think people are just throwing the name out there, as he's someone recognisable from the Middle East.

 

Although he has been fluttering his eyelashes at, and been shown the door by multiple EFL clubs, so it could be that he's finally reached us...

 

Feels however with how we've had multiple reputable outlets reporting this today, that we will find out something a bit more concrete quite shortly.

yeah I know he’s had a look at Derby and Wednesday among others. 
 

I’d prefer it not to be him tbh but there are worse people around from that region, far better as well he’s a dodgy scumbag, but he’s committed to sport at least and keeps his eyes on the ball. 

[Manwell Pablo]

Just had a message through that makes it sound like the negotiation is going well, 

 

No details on who it is though. 

[MPH]

2 minutes ago, Manwell Pablo said:

yeah I know he’s had a look at Derby and Wednesday among others. 
 

I’d prefer it not to be him tbh but there are worse people around from that region, far better as well he’s a dodgy scumbag, but he’s committed to sport at least and keeps his eyes on the ball. 

 

 

Other than recent history, I see nothing that would help us hold sway over either of them from an investors point of view. I always thought of Shef Wed as a bit of a sleeping giant..
 

 

[Manwell Pablo]

52 minutes ago, Ric Flair said:

You know better than I but I struggle to see where the value is in us, whilst we aren't a normal League One club. No club at that level or even Championship fodder are worth £150m + 

 

I think the training ground is such a ghostly asset, it's more of a burden than a positive but KP would need/want a massive figure to sell which is why I don't think it happens and instead will be admin eventually in the next 18 months. 

 

 

It seems massively over valued to me but Tommys talking a lot of sense and there is also the long term aspect of the training ground and the assets we have if they think they can turn it around and the fact King Power were never going unless they feel they got a good deal. 

[Manwell Pablo]

1 minute ago, MPH said:

 

 

Other than recent history, I see nothing that would help us hold sway over either of them from an investors point of view. I always thought of Shef Wed as a bit of a sleeping giant..
 

 

You been to Hillsborough recently? 😂

 

Ground needs knocking down and rebuilding 

[urban.spaceman]

6 minutes ago, Manwell Pablo said:

Just had a message through that makes it sound like the negotiation is going well, 

 

No details on who it is though. 

Wheres Englebert Humperdink living these days?

[MPH]

2 minutes ago, Manwell Pablo said:

You been to Hillsborough recently? 😂

 

Ground needs knocking down and rebuilding 

 Patch it up with 30-40m, get them to the prem and then you can probably justify building a new stadium

[MPH]

Ok, to be serious for a minute… I’m pretty sure some dodgy leicester City fan page ran a story back in April of some Qatari sheikh putting in an offer for us. I can’t remember which one, but I think it was one of the royal family.theres tons of them, mind.

 

either someone is wetting themselves  at almost guessing it right or we’ve had a bit of a Shaun from Enderby moment like when someone started slipping him the teamsheets…

Edited 14 hours ago by MPH

[Manwell Pablo]

14 minutes ago, MPH said:

 Patch it up with 30-40m, get them to the prem and then you can probably justify building a new stadium

Sheffields a funny place mate, it’s a big city but not big enough for two imo especially as they’re both potentially roughly the same size, if you have a Notts county Port Vale or even to a lesser extent Liverpool Everton scenario it kind of works but there really isn’t much between those two it splits the city down the middle. 

 

Derby have a lower ceiling than us as well.

 

Plus you add in the romance of the prem win, theoretically, if you have a shit ton of cash and can deal with our overheads and want to look very long term we are a decent proposition. Big risk but the potential is there if you are extremely wealthy. 
 

 

[Bluearmyfox28]

31 minutes ago, Manwell Pablo said:

You been to Hillsborough recently? 😂

 

Ground needs knocking down and rebuilding 

I think that’s the attraction of Leicester for many investors personally. Planning permission has already been approved for a stadium expansion.

 

With regards to Seagrave, stage of the art training facilitates seem to be a given with US and Saudi investors now days. If you can get Seagrave for £50-£75m, you’ve automatically saved anywhere from £50-£100m having to invest in a facility yourself.

 

Being a one club city is a big draw for investors too.

Edited 14 hours ago by Bluearmyfox28

[MPH]

11 minutes ago, Manwell Pablo said:

Sheffields a funny place mate, it’s a big city but not big enough for two imo especially as they’re both potentially roughly the same size, if you have a Notts county Port Vale or even to a lesser extent Liverpool Everton scenario it kind of works but there really isn’t much between those two it splits the city down the middle. 

 

Derby have a lower ceiling than us as well.

 

Plus you add in the romance of the prem win, theoretically, if you have a shit ton of cash and can deal with our overheads and want to look very long term we are a decent proposition. Big risk but the potential is there if you are extremely wealthy. 
 

 

 

4 minutes ago, Bluearmyfox28 said:

I think that’s the attraction of Leicester for many investors personally. Planning permission has already been approved for a stadium expansion.

 

With regards to Seagrave, stage of the art training facilitates seem to be a given with US and Saudi investors now days. If you can get Seagrave for £50-£75m, you’ve automatically saved anywhere from £50-£100m having to invest in a facility yourself.

 

Being a one club city is a big draw for investors too.

 

I totally get what you are both saying about the draw of Leicester City. But if we are truly talking a massive billionaire investor and a one club City, then I don’t think an 8k expansion will be enough to satisfy the growth that they are looking for

 

if we truly are the target of such a rich investor, I’d imagine a completely new stadium or at worst  revised plans with a much larger stadium expansion 

[Bluearmyfox28]

Just now, MPH said:

 

 

I totally get what you are both saying about the draw of Leicester City. But if we are truly talking a massive billionaire investor and a one club City, then I don’t think an 8k expansion will be enough to satisfy the growth that they are looking for

 

if we truly are the target of such a rich investor, I’d imagine a completely new stadium or at worst  revised plans with a much larger stadium expansion 

Demand is key. If we were let’s say to expand all 4 stands at the same time, to have a capacity around 55,000 we would have almost half of that empty which takes eyes away from an event.
 

Growing slowly creates demand, 8000 expansion is a very good start to that. Also, to add an 8000 expansion would sit us as the 16th biggest football stadium in the entire UK and be slightly bigger than Stanford bridge. No slouch.

[Manwell Pablo]

11 minutes ago, MPH said:

 

 

I totally get what you are both saying about the draw of Leicester City. But if we are truly talking a massive billionaire investor and a one club City, then I don’t think an 8k expansion will be enough to satisfy the growth that they are looking for

 

if we truly are the target of such a rich investor, I’d imagine a completely new stadium or at worst  revised plans with a much larger stadium expansion 

 

You're over thinking it, stadium capacity is over rated compared to commercial world wide revenue these days. 

 

Leicester City rising from the flames given we do have a world wide fan base now is a good angle....and you have to remember it's very rare anyone gets involved with a football club to make money, they are predominatly play things for people who have that amount of money.

 

Like I say if you can come up with a business strategy, have the patience to put up with what I now think will be a pretty tough season next year, deal with the overheads, work out how you can support the club without breaking FFP. It's still a good prospect, but only to a very very rich person which I didn't think we'd ever find. Like you say there are better options out there for anyone, but clearly someone is taking an interest and I'm just trying to articulate the reasons why. 

 

Without relegation to League One I always thought we'd find a buyer if Top was inclined to find one, sadly it has taken him to see the club us totally done with him in charge to do it.

 

I'm very surprised with some of the figures being thrown around and in fact the sole fact someone is actually interested but that seems to be the case. 

Edited 14 hours ago by Manwell Pablo

[Bluearmyfox28]

Hasn’t Jeff Bezos been looking for a club recently?

 

Prime Arena, HERE WE GO!

[STUHILL]

31 minutes ago, Bluearmyfox28 said:

Hasn’t Jeff Bezos been looking for a club recently?

 

Prime Arena, HERE WE GO!

 

Oh don't say that. You already got me fantasising about Rudkin being blasted off to space in one of Bezos's rockets 

[LichesterRedSoxSoccerBall]

If they have a camel up top in a city shirt it'll do better than Daka. I'm all in. Holiday booked to Oman to celebrate 

[MPH]

1 hour ago, Bluearmyfox28 said:

Hasn’t Jeff Bezos been looking for a club recently?

 

Prime Arena, HERE WE GO!

 

If it gets all our home games on Prime Tv I’d be well up for that. Massive advertising income  and revenue  a we’d be quids in. However I don’t think he’s classed as middle eastern. Although admittedly I have seen some of his drivers sheikh my parcels a few times

[Jon the Hat]

Business valuation is based on future earnings not current.  Assume we can bounce back with the right management and modest investment and we could look a bargain.

[Sooper Steve's shin]

6 hours ago, Manwell Pablo said:

 

Ok, I mean it wouldn't surprise me lets wait and see.

 

As a big boxing fan not sure how I'd feel about that but at this point it's anyone but this current setup.

 

21 players out the door and two signed and Wout Faes is now a thing again. 

 

 

 

6 hours ago, SemperEadem said:

Isn't the guy a horrible piece of work?

Yes, but Monaco didn’t want him so he’s back in for the moment. 

[Ric Flair]

1 hour ago, Jon the Hat said:

Business valuation is based on future earnings not current.  Assume we can bounce back with the right management and modest investment and we could look a bargain.

I've still not managed to find comfort that we are an attractive proposition given the circumstances we have found ourselves in.

 

Even as we try and get our house in order under whatever financial rules we come under, cash flow and going concern is a major obstacle I don't see how we overcome without us basically falling in to administration which is awful business and no guarantee we get to rise from the ashes.

 

Administration brings horrendous implications to people involved at the club and the community but the ownership have far less ability to get a valuation for what they are " owed " that reflects what they put in or think a club is worth. Other creditors also face the unfortunate outcome of not getting everything they are owed and whilst we are not completely privy to our massive credit facilities with Macquarie, that relationship and cycle we are in is why I struggle to see how we can be prosperous again any time soon.

 

The vast sales we have made and still need to make is highly likely to be our last summer of having the requisite players to be able to command such fees to keep the club going and again that further questions the true value of this club beyond a nice shiny training ground that costs obscene wedge to run and a run of the mill stadium. We are relying on a healthy number of bright academy prospects performing at a lower league next season and getting us promoted or building a reputation big enough for us to command similar fees to what the likes of Monga has gone for this sunmer and Kasey the year before.

 

At some point when we get even more vulnerable, clubs are going to take such players for far less and then it really is game over.

 

I hope i'm wrong, but I remain convinced we will be perilously close to going bust in the next 18 months.