City's £5m losses will get worse

[Ric Flair]

If Mandaric has spent £11 million, I reckon our losses will be about that much. We were losing money before he took over and nothing has changed in terms of increased revenue, we still don't own our ground and from what I gather the terms of the re-payments hasn't changed either. The wage bill will be horrific, plus signing 30 players and paying numerous one's off. But Mandaric has a responsibility to get this team challenging for promotion so he'll be stumping up some way or another, probably with big risk involved to the future of this club. But that's what happens in football now.

[Tommy G]

Well look at the facts.

Say 15,000 season ticket holders at an average price of £280 = £4.2 mill

Then TV revenue on top of that will be their main earnings. Then there is a massive wage bill plus repayments for the Walkers & horrific interest on those repayments.

The only other income will come from the club shop/sponsorship/corporate events. I would imagine the club Turnover wouldn't be more than £10m a year max, with the expenses severly outweighing the income.

[Thracian]

Well I don't mean to be morbid but what happens if he dies on us and these are loans and they aren't covered, I think you will find your interest in the future well-being of LCFC might increase a little.

Make no bones about it we are spending more than we are earning and that money has to come from somewhere and one thing MM isn't is philanthropic he's hard nosed businessman looking to make a nice fat profit, which is all well good for us if things go his way if not well.....................

I'd just written similarly and only a final check of the posts stopped me submitting it. In every recent picture of Mandaric I've seen he looks worn out.

[NewquayFox]

I think we have more to worry about at the moment like our League position,Leicester City have been in debt for years and you will find that a lot of clubs are in debt also.

In MM we have a guy who is clearly loaded and loves the game so lets all calm down and let him get on with running the club,its the feckin overpaid players we should be slagging off,poncing around week in week out that have got us in this position.As someone posted earlier he has never left a football club in the shite has he. ;0)

[Tommy G]

I think we have more to worry about at the moment like our League position,Leicester City have been in debt for years and you will find that a lot of clubs are in debt also.

In MM we have a guy who is clearly loaded and loves the game so lets all calm down and let him get on with running the club,its the feckin overpaid players we should be slagging off,poncing around week in week out that have got us in this position.As someone posted earlier he has never left a football club in the shite has he. ;0)

What a silly post. He isn't ''loaded'' compared to other suga daddies in football at the minute. If he dies were also likely to be fooked.

How can we blamwe the overpaid players when it's MM who brought these overpaid players here? The buck stops with him I'm afraid.

[consty]

The firm I work for did some consultancy work for Leicester City to advise Tim Davies on the MM takeover.

The club had losses of £6m then in 6 months which is worse. MM has only actually initially invested 500K despite the other figures been banded about. He has took on the debt of the stadium and borrowed the money to invest this season from a well known bank.

Since then MM has obviously invested more but i wouldn't be deeply concerned about the 5 mill looses

Here's a question. Clearly a lot of money has gone into LCFC to keep it afloat with much of it being as you say 'borrowed money to invest.... from a well known bank' Thus my question is, if MM dies (sorry to be morbid), who is responsible for the debt? Is it the estate of MM or LCFC? I'd suspect MM's estate. If he decides to sell up and leave, then I'd guess whoever takes over has to take on liability for the loans.

[davieG]

The firm I work for did some consultancy work for Leicester City to advise Tim Davies on the MM takeover.

The club had losses of £6m then in 6 months which is worse. MM has only actually initially invested 500K despite the other figures been banded about. He has took on the debt of the stadium and borrowed the money to invest this season from a well known bank.

Since then MM has obviously invested more but i wouldn't be deeply concerned about the 5 mill looses

I don't see that he has taken on the debt of the stadium, he's taken on the interest payments which is currently an inclusive part of running LCFC. The debt will remain until someone coughs up real money to pay it off, I can't see MM ever doing that. The most he might do is renegotiate the loan because there is no reason to pay it off. I'd imagine that when he eventually sells up it will include the outstanding stadium debt, I'm just hoping that's the only debt outstanding.

I think we have more to worry about at the moment like our League position,Leicester City have been in debt for years and you will find that a lot of clubs are in debt also.

In MM we have a guy who is clearly loaded and loves the game so lets all calm down and let him get on with running the club,its the feckin overpaid players we should be slagging off,poncing around week in week out that have got us in this position.As someone posted earlier he has never left a football club in the shite has he. ;0)

I think you missed Manwell's response!

[davieG]

Here's a question. Clearly a lot of money has gone into LCFC to keep it afloat with much of it being as you say 'borrowed money to invest.... from a well known bank' Thus my question is, if MM dies (sorry to be morbid), who is responsible for the debt? Is it the estate of MM or LCFC? I'd suspect MM's estate. If he decides to sell up and leave, then I'd guess whoever takes over has to take on liability for the loans.

Have you not read the previous posts

[andyh1884]

If anyone knows someone who works for PWC then they should be able to tell you a bit about Leicesters Current financial position.

There speaks a man with no regard for client confidentiality and professional ethics. When I worked for an accountancy firm you could get binned off for disclosing your client's financial performance etc, maybe times have changed in the last 7 months

[Tommy G]

I don't think anyone would know unless you know people in the know!!

You can download a copy of the balance sheet for a quid off Companies House. That will only really tell you the creditors, debtors and fixed assets of the Business.

How much Leicester owe, how much they are owed and what fixed assets they have. As they dont fully own the stadium they are unlikley to even have many fixed assets. I'd imagine MM would have borrowed the money and secured it against his liquid assets which is his bank balance and any other capital investment he may have

[Daggers]

he may be many things , but certainly not a fool ,

Of course not, how stupid of me to suggest otherwise; that the man who employed/signed idiots should in anyway be a fool for having done so.

Not one of his obscenely wasteful managerial decisions were foolish.

[NewquayFox]

Tommy G,i should imagine that MM has more money behind him than most of the money grabbers we have had on the board over the last 40 years (thats how long i have followed City) So i think all these comments about about what if he dies are pretty pathetic,a bit like a lot of stuff said on here. So get behind the team and stop whining and grow up. ;0)

[Manwell Pablo]

I think you missed Manwell's response!

It wasn't all his fault, the league the St Louis Stom were in folded not leaving him alot of choice but to liquidate the club, still not a glowing section of his CV.

EDIT: Although if we're talking leaving a club in "the shit" as opposed to "out of business" he made a complete hash of OCG Nice, promised them the European Champions League, got them nowhere and bought a load of shit. He's remembred for bringing a NBA attitude to football to the club not success. they called him "La Président fantôme" sort of speaks for itself. He then sold the club to some dodgey Italian types who got Nice releagated and I think they finally managed to recover two years ago (about 5 years after Milan left)

[Tommy G]

There speaks a man with no regard for client confidentiality and professional ethics. When I worked for an accountancy firm you could get binned off for disclosing your client's financial performance etc, maybe times have changed in the last 7 months

I had exactly the same opinion as you until a few weeks back. After discussing with one of my partners at work you can easily look for a firm and find out which accountant acts for them? Therefore there is no big secret. The problem arises when you start spouting off whats in their accounts to make them look in an unsavoury position.

You can get hold of any companies accounts off Companies House if you wanted to look at them

[James.]

I had exactly the same opinion as you until a few weeks back. After discussing with one of my partners at work you can easily look for a firm and find out which accountant acts for them? Therefore there is no big secret. The problem arises when you start spouting off whats in their accounts to make them look in an unsavoury position.

You can get hold of any companies accounts off Companies House if you wanted to look at them

Surely that only applies to plc's? Furthermore there is much to a company's performance that will not be in the annual reports but will be known by auditors. Asking an employee of an accountancy firm for details of their client's performance would be met with a big f**k off, assuming they had any sense of professional ethics and knowledge of accounting legislation.

[andyh1884]

I had exactly the same opinion as you until a few weeks back. After discussing with one of my partners at work you can easily look for a firm and find out which accountant acts for them? Therefore there is no big secret. The problem arises when you start spouting off whats in their accounts to make them look in an unsavoury position.

You can get hold of any companies accounts off Companies House if you wanted to look at them

I wasn't talking about finding out who acts for a company, I was talking about you saying you could speak to any person from 'x' firm about Leicester's current financial position. Revealing information of that kind would be breaking client confidentiality, this is information that has not been published and is not in the public domain, such as accounts at Companies House.

[Babylon]

So i think all these comments about about what if he dies are pretty pathetic

It's a bit pathetic to disregard the current and future safety of our club... you're obviously someone who doesn't believe in planning ahead. Look at Gretna, their owner became seriously ill. They had to into administration because he wasn't around to sign the cheques!

MM is supposed to be worth around £60/80m.. If he is going to pump in £11m of that this season alone, without any guarantees for a return, then fair play. But I very much doubt he will do.

[davieG]

Tommy G,i should imagine that MM has more money behind him than most of the money grabbers we have had on the board over the last 40 years (thats how long i have followed City) So i think all these comments about about what if he dies are pretty pathetic,a bit like a lot of stuff said on here. So get behind the team and stop whining and grow up. ;0)

Well I've followed them for over 40 years as well but that doesn't make me lose my objectivity, I fail to see what is pathetic about looking to the future and anticipating what problems might occur.

In fact I sincerely hope that MM has done just that otherwise we could be in a mess that you seem quite happy to just 'hope' never happens whilst some of us have a genuine concern and fear. You only have to look at other clubs to see how many have succumbed to so called rich businessmen and then deeply regretted it.

As I sad earlier MM is business man not a philanthropist and the future well being of LCFC lies in his hands and we will sink or swim on the back of his success or failure and so far he's made a pretty crap job of it.

[Tommy G]

Surely that only applies to plc's? Furthermore there is much to a company's performance that will not be in the annual reports but will be known by auditors. Asking an employee of an accountancy firm for details of their client's performance would be met with a big f**k off, assuming they had any sense of professional ethics and knowledge of accounting legislation.

But thats down to the individual isn't it. If they tell you things about a company then yeah that is breaking the law. I just suggested you could ask whoever acts for them, whether they told you is upto them and whether they wanted to get in trouble or not

[Tommy G]

I wasn't talking about finding out who acts for a company, I was talking about you saying you could speak to any person from 'x' firm about Leicester's current financial position. Revealing information of that kind would be breaking client confidentiality, this is information that has not been published and is not in the public domain, such as accounts at Companies House.

If im honest the firm in question was just a guess. They are the biggest in the country therefore naturally have all the big clients.

[hairy]

Dont know what you are all worrying about anyway. Its taken a year to run up that debt and my wife could do it in under a week!

[James.]

If im honest the firm in question was just a guess. They are the biggest in the country therefore naturally have all the big clients.

Why would they have Leicester City then? We are miniscule in business terms!

[Tommy G]

Why would they have Leicester City then? We are miniscule in business terms!

I agree, fotball clubs would like a big 4 to act for them presumably. Looks good if a big 4 audits you when it comes to selling up etc

[Daggers]

Dont know what you are all worrying about anyway. Its taken a year to run up that debt and my wife could do it in under a week!

(This text is only here to prevent this from being just a post with a smilie in it.)

[Uncle Monty]

Just read the article in the merc, i thought that MM bought the players??? isn't that why we have forgiven him for being a lunatic. Is he doing a ridsdale?