Surreal Madrid Posted 14 February 2007 Share Posted 14 February 2007 Not sure how much will actually go towards paying off debts. Didn't someone say that we weren't paying interest on the debt to Teachers (stadium) until we get into the premiership which means there is no hurry in paying that off really. Can't imagine we have other significant debts and so it's more about balancing the running costs of the club. If someone has the loss from this financial year then I guess he'll cover that again (try to cut it too) and the rest will go on transfers/wage bill. Interest is being charged on the Teacher's loan, but I think our repayments are not covering all of it while we are in the Championship, so the loan is going up. Link to comment Share on other sites More sharing options...
Fox in a Box Posted 14 February 2007 Share Posted 14 February 2007 I assumed that it meant that their shares would have taken on 'B' status if they'd gotten onto the board - and they couldn't get onto the board unless they invested 500k, which we've known for a while. thats right, they could have had a voice on the board, not just shares if the could raise 500K to trigger status 'A' Link to comment Share on other sites More sharing options...
London_Fox Posted 14 February 2007 Author Share Posted 14 February 2007 Interest is being charged on the Teacher's loan, but I think our repayments are not covering all of it while we are in the Championship, so the loan is going up. I thought it was interest free (or only equal to inflation) until we get promoted, when it was refinanced. Could be wrong if you're sure. In which case I imagine a decent amount will go to making sure at least cover interst. Link to comment Share on other sites More sharing options...
Louise Posted 14 February 2007 Share Posted 14 February 2007 Interest on the loan in this division is approx 1m per year I believe. Around a couple of weeks ago it was rumoured that we were going to be 7m in debt at the end of the season - and that we were only covered for 2.5m. No idea how much of that was scaremongering though. Link to comment Share on other sites More sharing options...
surrifox Posted 14 February 2007 Share Posted 14 February 2007 I thought it was interest free (or only equal to inflation) until we get promoted, when it was refinanced. Could be wrong if you're sure. In which case I imagine a decent amount will go to making sure at least cover interst. Presumably Teachers have the right to re-negotiate the terms of the loan in the event of a change of control at the club. This would in turn allow MM's advisers to pick over the deal. The interest on the loan by any measure cannot be less than £1 miilion a year before repayment of capital and is a real millstone to future development. It would be interesting to see how MMs business plan addresses this . Link to comment Share on other sites More sharing options...
Louise Posted 14 February 2007 Share Posted 14 February 2007 Pointed out by Babs on another forum, this part of the document: "The unaudited results of the Company for the six months ended 30 November 2006 show a loss before tax for the period of £3.6 million (6 months ended 30 November 2005:-loss £120,000;year ended 31 May 2006: profit-£1.6 million)." Link to comment Share on other sites More sharing options...
Jon the Hat Posted 14 February 2007 Share Posted 14 February 2007 Interest on the loan in this division is approx 1m per year I believe. Around a couple of weeks ago it was rumoured that we were going to be 7m in debt at the end of the season - and that we were only covered for 2.5m. No idea how much of that was scaremongering though. The detail in the link you posted suggests that the operating loss for the first half of the year was £3.6M. Asumming this repeats then the £7M figure would be about right. Assuming £4.5M is availble now, I guess that means about £1m available for loans and wages, plus any additional savings eg from fewer paid Directors. Link to comment Share on other sites More sharing options...
Fox in a Box Posted 14 February 2007 Share Posted 14 February 2007 Interest on the loan in this division is approx 1m per year I believe. Around a couple of weeks ago it was rumoured that we were going to be 7m in debt at the end of the season - and that we were only covered for 2.5m. No idea how much of that was scaremongering though. Block payment WAS 1m for the stadium... 7m was the amount missing from parachute payments, I think otherwise turnover was down but we had a profit from the year prevoiusly. Link to comment Share on other sites More sharing options...
davieG Posted 14 February 2007 Share Posted 14 February 2007 The detail in the link you posted suggests that the operating loss for the first half of the year was £3.6M. Asumming this repeats then the £7M figure would be about right. Assuming £4.5M is availble now, I guess that means about £1m available for loans and wages, plus any additional savings eg from fewer paid Directors. There were only 2 paid directors Ronald and Tim, Ron's gone and Tim's "He has negotiated a £100,000 termination payment and MM wants him to work it off." according to someone on another forum. As you say some savings there. Link to comment Share on other sites More sharing options...
Babylon Posted 14 February 2007 Share Posted 14 February 2007 Pointed out by Babs on another forum, this part of the document: "The unaudited results of the Company for the six months ended 30 November 2006 show a loss before tax for the period of £3.6 million (6 months ended 30 November 2005:-loss £120,000;year ended 31 May 2006: profit-£1.6 million)." Cheers Louise! To sum up we'll have about 2m extra a season to put into the team, if losses continue at their current rate anyway!! Not much considering our first two seasons down from the premier (with parachutes) we were spending vastly more than what it looks like we will be doing now under MM. ALTHOUGH... it does say a minimum of 9m... so fingers crossed he puts more in (can't see it). Link to comment Share on other sites More sharing options...
Ric Flair Posted 14 February 2007 Share Posted 14 February 2007 The detail in the link you posted suggests that the operating loss for the first half of the year was £3.6M. Asumming this repeats then the £7M figure would be about right. Assuming £4.5M is availble now, I guess that means about £1m available for loans and wages, plus any additional savings eg from fewer paid Directors. Not a great deal is it available? That's why it's essential we get the right manager. Link to comment Share on other sites More sharing options...
Ric Flair Posted 14 February 2007 Share Posted 14 February 2007 Cheers Louise! To sum up we'll have about 2m extra a season to put into the team, if losses continue at their current rate anyway!! Not much considering our first two seasons down from the premier (with parachutes) we were spending vastly more than what it looks like we will be doing now under MM. ALTHOUGH... it does say a minimum of 9m... so fingers crossed he puts more in (can't see it). It's all down to getting the right manager. Billy Davies has done well at Derby, but he's had about £5 million to spend. It can be done with less though. Link to comment Share on other sites More sharing options...
Louise Posted 14 February 2007 Share Posted 14 February 2007 How long before John Barber sneaks on here, finds the document link and our working outs and passes them off as his own in an exclusive... Link to comment Share on other sites More sharing options...
Babylon Posted 14 February 2007 Share Posted 14 February 2007 It's all down to getting the right manager. Billy Davies has done well at Derby, but he's had about £5 million to spend. It can be done with less though. I agree... goodbye Rob in the summer I think!!! Althought lets face it, MM's track record of appointing managers is shocking... who we got could be anyones guess. Link to comment Share on other sites More sharing options...
Fox in a Box Posted 14 February 2007 Share Posted 14 February 2007 How long before John Barber sneaks on here, finds the document link and our working outs and passes them off as his own in an exclusive... MWAH love you!..... and he will say it in a raid deep toned voice....'there has been PROBLEMS WITH THE deal' AND WE DONT KNOW IF IT WILL EVER HAPPEN!! (TWAT) Check my avatar see what i think of barber... Sheep always need shearing (barber) Link to comment Share on other sites More sharing options...
MC Prussian Posted 14 February 2007 Share Posted 14 February 2007 Of course, Milan could go the cheap way and (deliberately) miss out on the playoffs and/or promotion, as he'd have to pay lower wages. BUT the higher costs for the Mission Premiership 3+ would be compensated with the SkyTV rights and other additional benefits. It's a pretty fair and clever deal in my eyes. Link to comment Share on other sites More sharing options...
DanTheFoxBhoy Posted 15 February 2007 Share Posted 15 February 2007 Clever bid, can see why some shareholders were shirty about it though. Basically it's good for the club, but only good for the shareholders if, with premiership monies, Milan pays them back? Link to comment Share on other sites More sharing options...
Webbo Posted 15 February 2007 Share Posted 15 February 2007 perhaps all the people who called the previous board greedy and selfish would like to appologise now. P.S. i'm not holding my breath though. Link to comment Share on other sites More sharing options...
Jon the Hat Posted 16 February 2007 Share Posted 16 February 2007 perhaps all the people who called the previous board greedy and selfish would like to appologise now. P.S. i'm not holding my breath though. Good things the press has inside sources at the club.... A Leicester insider has revealed Milan Mandaric has paid only £4.5m up front to buy the club. (Daily Express) Or we wouldn't have a clue WHAT was going on... BBC Gossip Link to comment Share on other sites More sharing options...
Louise Posted 21 February 2007 Share Posted 21 February 2007 Merc get in on the act: Mandaric to inject £4.5m next month Milan Mandaric's takeover of Leicester City will see the tycoon put £4.5million into the club next month and another £4.5m before the end of May next year. That £9m cash injection, revealed in a document lodged with the Stock Exchange, will be used to strengthen the squad and provide the money the club needs to function. It also gives Mandaric a controlling share of the club even before the other shareholders sell up. This is because rather than simply buy out the existing shareholders, Mandaric is asking them to agree to issue more than 19 million new shares which he will buy for a shade over 47 pence each. As there were already more than six million shares held in the club, the new shares will give Mandaric more than 75 per cent of the enlarged number of shares in existence. And being above that 75-per-cent mark means Mandaric can control the board, appoint any directors and pass any resolutions he wants to. When the existing shareholders agree to the deal - and more than 94 per cent have given an "irrevocable undertaking" to do so at an Extraordinary General Meeting on March 9 - several things happen, including: * Mandaric puts in £4.5m next month and gets more than 75 per cent of the enlarged number of shares * He gets an option to buy the existing shareholders out, on a sliding scale depending on when he buys and how successful the club has been (see below) * The existing board stands down, save for Malcolm Stewart-Smith, who represents the stadium's financiers, and Tony Lander. Mandaric joins as executive chairman * Chief executive Tim Davies resigns from the board but is kept on as chief executive officer * Each shareholder gets two season tickets, in "mutually acceptable seats" for as long as Mandaric is the majority owner. The sliding scale of payments for the shareholders' shares means they will get at least 10 pence per share (which will cost Mandaric more than £600,000). If City are promoted by the end of the 2009/10 season, the shareholders get another 40 pence per share. If City stay up for a season, they get another 50 pence per share. In effect, if City are promoted and then avoid relegation, the shareholders will get back their original investment. If City are not promoted by the summer of 2010, the original shareholders will get 10p per share. Mandaric could exercise the option to buy at any time before August 15 2010. In theory, he could insist on buying the shares for 10 pence each on March 10 this year. Or he could wait until City are riding high in the table next season, or wait even longer. If he hasn't bought them up by August 2010, the shareholders can force him to do so. Finance expert Mark Faulknall, a principal at accountancy firm Macintyre Hudson, at Meridian Business Park, said: "The deal makes sense. At least he has a demonstrable track record of having done this once before. The way the deal is structured means the old shareholders still have an interest in the club and will share in any success, just as they shared the burden of bringing the club out of administration. It is a question of not forgetting people who have seen the club through difficult times." * The shareholders must be resigned to not seeing a winning streak this season which could lift City into the play-offs. The long and intricately worded legal document does not appear to cover the possibility of promotion this season. http://www.thebluearmy.co.uk/details.asp?b...6269754|p|536|0 Link to comment Share on other sites More sharing options...
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