Milan Mandaric has targeted leicester!

[fosseman]

The colour of seats should not be an issue. Revenue from Tigers is far more important. It will give City some financial stability. Come on you blue white green reds!

[drew]

How about you point out where i have guessed your opinion on the MM bid? I have not said anything about whether you are for or against MM buying LCFC.

All I have done is pick out some rather pertinent points from your posts; which are based around opinion rather than facts.

Sorry to cause you such anguish but its rather early to dip out of the debate.

[Chandler]

i think a lot of what you say is guess work, how ever i think your probably on the right lines.

For the benefit of the financially semi literate (aka 'drews') here's the central way that MM hopes his little earner (LCFC) works for him:

1) Acquires 100% of LCFC ordinary shares for £3.2 million (MM puts up £750,000 of own capital)

2) LCFC spend £2m in winter window (MM puts up £250,000 of own capital)

3) LCFC spend £5m in summer window (MM puts up £1m of own capital against TV income)

Total capital outlay £2m

Assuming two successful consecutive seasons of Premiership football, acceptance of groundshare proposal LCFC shares would be conservatively valued at £25m. So

1)) MM sells 49% of LCFC holding to 'American Global Inc.' for £12.5m

2) MM receives 2 years salary, player loan repayments & dividends - £1.5m

Total received £14m

Milan then repays

1) 40% of commercial loan to purchase shares c. £1m

2) offers 48ers initial 50% of back half of shares £1.6m

Total repayments (over two years) £2.6m

Total capital outlay and repayments £4.6m

Net profit £9.4m

Assuming Premiership football this would be a very conservative estimate given other 'invisble' opportunities(under the table payments and whacking up the overdraft).

[Fox in a Box]

For the benefit of the financially semi literate (aka 'drews') here's the central way that MM hopes his little earner (LCFC) works for him:

1) Acquires 100% of LCFC ordinary shares for £3.2 million (MM puts up £750,000 of own capital)

2) LCFC spend £2m in winter window (MM puts up £250,000 of own capital)

3) LCFC spend £5m in summer window (MM puts up £1m of own capital against TV income)

Total capital outlay £2m

Assuming two successful consecutive seasons of Premiership football, acceptance of groundshare proposal LCFC shares would be conservatively valued at £25m. So

1)) MM sells 49% of LCFC holding to 'American Global Inc.' for £12.5m

2) MM receives 2 years salary, player loan repayments & dividends - £1.5m

Total received £14m

Milan then repays

1) 40% of commercial loan to purchase shares c. £1m

2) offers 48ers initial 50% of back half of shares £1.6m

Total repayments (over two years) £2.6m

Total capital outlay and repayments £4.6m

Net profit £9.4m

Assuming Premiership football this would be a very conservative estimate given other 'invisble' opportunities(under the table payments and whacking up the overdraft).

I fear that LCFC would NOT be using loans instead of capital investment as this nearly made us go under.

http://www.clubsincrisis.com/clublist.asp?Key=50

GO and speak to deloitte and touche ask for Nick Dargan

and ask his opinion on your MATH.

[Kilworthfox]

Still think rumours from that website should be ignored completely (and hence, not posted).

Oh dearLooking bad

Hope it's not true they seem sure tho!

[drew]

Is this based on opinion or fact? Its an interesting point, but i must add that if it is as easy as that surely the board would be well advised to take this approach.

The current board are unfortunately conservative in their actions. It would seem they are happy with mediocrity and stability in the championship than really attempting to get promoted.

However this could all be in vain, it appears that the skids may be under the MM bid.

[davieG]

does it really matter what colour the seats are?

all the off field events that happen at welford rd would happen here.

any ground development would be in their interest too.

Err no they wouldn't, as you would be losing all the 'funtion rooms located at Welford Rd so the rooms at the Walkers will be split 50/50 between the two clubs therefore LCFC wiil lose 50% of their off-field revenue streams derived from the hiring out of those functionrooms.

Again not necessarily, it's a long shot I know but what if MM manages to get us into the Premier and we sustain some real stability there sayover the next 10 years we may want to increase the capacity, the Tigers may not and could therefore block that, all conjecture but then so are the perceived savings some people go on about.

[Chandler]

I fear that LCFC would NOT be using loans instead of capital investment as this nearly made us go under.

http://www.clubsincrisis.com/clublist.asp?Key=50

GO and speak to deloitte and touche ask for Nick Dargan

and ask his opinion on your MATH.

However MM chooses to purchase his shares is principally a matter for him and not for the shareholders. They just want their money.

And when MM has acquired 100% of LCFC shares he is to all intents and purposes LCFC and can choose any funding mechanism he likes (or none) to improve his asset.

LCFC is a commercial case and is nothing more than the sum total of its owners (the shareholders).

[Jon the Hat]

Err no they wouldn't, as you would be losing all the 'funtion rooms located at Welford Rd so the rooms at the Walkers will be split 50/50 between the two clubs therefore LCFC wiil lose 50% of their off-field revenue streams derived from the hiring out of those functionrooms.

Again not necessarily, it's a long shot I know but what if MM manages to get us into the Premier and we sustain some real stability there sayover the next 10 years we may want to increase the capacity, the Tigers may not and could therefore block that, all conjecture but then so are the perceived savings some people go on about.

We would almost certainly get more than half of the exsiting revenue from the function rooms. You're assuming none of the Welford road business transfers to the Walkers??

Believe me there would absolutely 100% certainly be considerable savings. Obviously this also means job losses. Areas you could save on would certainly include:

Reduced interest payments

Ground staff - might have just as many workers to maintain pitch but fewer managers

Ticket office - they must do bugger all half the time anyway

Catering - you could lose a few heads in the staff restaurant

Stadium maintenance - lose half

Corporate Function sales - lose half

Training ground - why not share that as well

Shared service centre - outsource or merge all admin AP / AR / data processing etc.

IS could merge if all offices at the Walkers - lose half

Reduced shop staff & overhead

If they can't cut 15% from the shared overhead costs from that lot their finance teams should be shot.

[Jon the Hat]

However MM chooses to purchase his shares is principally a matter for him and not for the shareholders. They just want their money.

And when MM has acquired 100% of LCFC shares he is to all intents and purposes LCFC and can choose any funding mechanism he likes (or none) to improve his asset.

LCFC is a commercial case and is nothing more than the sum total of its owners (the shareholders).

I suspect he would have to underwrite any commercial loans to the club until we reach the promised land. Any loans he makes will be at his own risk.

[Steven]

It is all off if we trust royofwigston. <_<

[Chandler]

It is all off if we trust royofwigston. <_<

I wouldn't trust a man who spells obstacles 'obsticles.' The story is pap as the ball is in MM's court. He'll only pull out now if the pencil necks find a black hole in the accounts that leads to a parallel financial universe -

CFCL

[MalcAndJanet]

I wouldn't trust a man who spells obstacles 'obsticles.' The story is pap as the ball is in MM's court. He'll only pull out now if the pencil necks find a black hole in the accounts that leads to a parallel financial universe -

CFCL

I do hope that you are right. I fear for the worst though. Lot's of rumours have been flying around for some weeks regarding certain shareholders being unwilling to accept the bid. I've heard them from at least one person that I trust very, very much.

Who will blink first?

[Brummie-FOX]

I just don't understand why a shareholder would do this. If he loved the club so much, he would welcome Milan Mandaric with open arms, or at least I thought they would. Most fans want him. Most of the shareholders seem to want him. So why halt the deal?

Im probably missing something but thats my twisted thought.

[Steven]

I just don't understand why a shareholder would do this. If he loved the club so much, he would welcome Milan Mandaric with open arms, or at least I thought they would. Most fans want him. Most of the shareholders seem to want him. So why halt the deal?

Im probably missing something but thats my twisted thought.

Look at it this way. They will say that they are doing it in the "best interests" of the Club. Let us accept that premise. That can only mean one of two things. Firstly the current situation is better than the current MM bid, something that is obviously not true as we are heading for slow decline. It could mean that they have something better in mind. If that is the case why is there no counterbid on the table?

The truth of the matter is persons at the Club are acting out of a self interest which precludes the ordinary fan. <_<

[Webbo]

Look at it this way. They will say that they are doing it in the "best interests" of the Club. Let us accept that premise. That can only mean one of two things. Firstly the current situation is better than the current MM bid, something that is obviously not true as we are heading for slow decline. It could mean that they have something better in mind. If that is the case why is there no counterbid on the table?

The truth of the matter is persons at the Club are acting out of a self interest which precludes the ordinary fan. <_<

i can't believe that the shareholders are holding out for more money. they obviously don't trust MM. as i've said before, none of us know whats going on behind closed doors, so who are we to judge.

[Steven]

i can't believe that the shareholders are holding out for more money. they obviously don't trust MM. as i've said before, none of us know whats going on behind closed doors, so who are we to judge.

... because actions, or lack of them in this case, speak louder than words.

[Brummie-FOX]

I just dont see why they cant trust Milan. I assume they haven't heard about Portsmouth the past few years. Ok, when they got to the Premiership, they struggled. Luckily a wealthy man took over and put forward a budget for the manager to use. They may look at Portsmouth's position when Milan left (after the 1-0 home defeat against Bolton) thinking, if Gaydemak hadn't got involved at all they'll still be struggling.

Another twisted though

[Daggers]

I wouldn't trust a man who spells obstacles 'obsticles.' The story is pap as the ball is in MM's court.

Absofrickenlutely.

Roy of Wigston wasn't part of any meeting today ~ and until the club or MM state otherwise, it is still on. I'll be having no truck with idiot rumour in the meantime.

[Webbo]

I just dont see why they cant trust Milan. I assume they haven't heard about Portsmouth the past few years. Ok, when they got to the Premiership, they struggled. Luckily a wealthy man took over and put forward a budget for the manager to use. They may look at Portsmouth's position when Milan left (after the 1-0 home defeat against Bolton) thinking, if Gaydemak hadn't got involved at all they'll still be struggling.

Another twisted though

i don't know why either, but i , same as you, haven't been at any of the board meetings.

i know 'chandler' is a bit self important, but i suspect there's something in what he says.

[Bert]

Why is everyone getting worried over nothing?

Why don't you all wait until an official statement is released?

I could be clutching at straws here, but whose to say the bid has been made, and it will be anounced before the game tomorrow, and we'll see Mandy on the pitch?

[lookwhaticando]

Why is everyone getting worried over nothing?

Why don't you all wait until an official statement is released?

I could be clutching at straws here, but whose to say the bid has been made, and it will be anounced before the game tomorrow, and we'll see Mandy on the pitch?

I'm with dirty berty on this one.

Too many of us are getting a little excitable here.

[RowlattsFox]

keep the faith

[davieG]

We would almost certainly get more than half of the exsiting revenue from the function rooms. You're assuming none of the Welford road business transfers to the Walkers??

Why would we get more than half, surely we would be equal partners -so I don't agree

Believe me there would absolutely 100% certainly be considerable savings. Obviously this also means job losses. Areas you could save on would certainly include:

Yes 100% certain there will be savings as for it being considerable I'm not convinced

Reduced interest payments -Yes

Ground staff - might have just as many workers to maintain pitch but fewer managers - Well one fewer manager, but hte maintenance requirements will undoubtedly require evening working, under lights saturday games followed by sunday games so probably more expensive.

Ticket office - they must do bugger all half the time anyway - Maybe but they are often overworked, ask TPH, and again it will be more intensive e.g both playing at the weekends, it will also need to be bigger.

Catering - you could lose a few heads in the staff restaurant - can see a groundshare affecting that except you lose what the Tigers earn from their restaurant

Stadium maintenance - lose half - Don't agree again wear and tear will be greater, so some savings but not a lot. Will also need to employ people to rebrand the stadium between games

Corporate Function sales - lose half - Agree

Training ground - why not share that as well - Not big enough

Shared service centre - outsource or merge all admin AP / AR / data processing etc.- minimal saving as they will still both have the same level of work.

IS could merge if all offices at the Walkers - lose half - What's IS, have they got that much office room, I can't see it besides they will need to maximise the the function rooms not reduce them to fill them with office staff?

Reduced shop staff & overhead- Will need two seperately branded shops, can't see any reduction in sales staff.

If they can't cut 15% from the shared overhead costs from that lot their finance teams should be shot.

So I still can't see significant savings on running costs. They will still be two seperate businesses share one facility.

The only signifacant saving is in the interest on the stadium, assuming it's not paid off, the price to be paid is that we will never own it.

[Swedging]

I could be clutching at straws here, but whose to say the bid has been made, and it will be anounced before the game tomorrow, and we'll see Mandy on the pitch?

Yep, you're clutching at straws - but mebbeh the wrong ones. Almost certainly the bid hasn't been made - but the question is whether a bid will be made....