Foxes Post Financial Results

[Fox in a Box]

Posted on: Mon 26 Jan 2009

Leicester City Football Club have today announced their financial results for the year ending May 31 2008.

The club have posted a £14.2m loss for the period concerned - which coincided with the club's relegation to the third tier of English football for the first time in their history.

Leicester currently sit at the top of the League One table and are well positioned to make an instant return to the Championship at the first attempt.

Chief Executive Lee Hoos said: "As the club announced in March last year, these losses were expected for the 2007-08 season. This is as a result of significant spending in the playing squad during a period in which our income levels remained fairly stable.

"Since our relegation to League One the club has significantly reduced its cost base in line with the associated reductions in income.

"Our aim for this season was to gain promotion back to the Championship and we are currently in an excellent position to achieve that goal."

[JoeyB]

2.1 Mil on DJ

1M On Clem

grrrr waste of space

But we sold Stears, Hume and McAuley for 4M between them so imagine what it would of been like if we hadn't of sold them.

At least were going up and not down.

[Fox in a Box]

I would like to see the breakdown of the results here, Well we did get rid of 3 managers!!! at a cost, Plus relegation (gate reduction) and improved wages for the later signings (oakley/howard) etc, but I wonder if this takes into consideration the players out fees?

Still NOT GOOD!

[davieG]

2.1 Mil on DJ

1M On Clem

grrrr waste of space

But we sold Stears, Hume and McAuley for 4M between them so imagine what it would of been like if we hadn't of sold them.

At least were going up and not down.

Wont that income be in this years budget?

Let's not forget the money he wasted on Managers, how much did Allen and Holloway cost in compensation to their respective clubs and the 3 year salary costs.

[Ultra]

That's a massive hit.

Credit to Mandaric for digging deep into his pocket and not trying to cut and run like other chairmen might have done.

But he'll try to recoup these losses sooner rather than later, which means he'll expect promotion not only this season, but also next.

We are now more dependent on him than ever. In the long term, this is not helpful to us.

[demon_dog]

I would like to see the breakdown of the results here, Well we did get rid of 3 managers!!! at a cost, Plus relegation (gate reduction) and improved wages for the later signings (oakley/howard) etc, but I wonder if this takes into consideration the players out fees?

Still NOT GOOD!

Not to mention Agents fees!

Lack of TV revenue must also have cost us.

This is probably one of the reasons we do not have a shirt sponsor next season, lack of TV coverage.

In the current economic climate I don't expect next years results to be any better.

Now we know why MM hasn't got his cheque book out just recently.

[Fox in a Box]

Wont that income be in this years budget?

Let's not forget the money he wasted on Managers, how much did Allen and Holloway cost in compensation to their respective clubs and the 3 year salary costs.

exactly what I was thinking..

Also take into the equation that MM get the club cheaper 10p in the pound if I remember right based on relegation/promotion issues. This was in the takeover plan.

Im sure the FOXESTRUST could enlighten us.

found this from when he was taking over.

http://www.thebluearmy.co.uk/details.asp?b...6269754|p|536|0

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.

[JoeyB]

I say we create our own balance sheet

Wont that income be in this years budget?

Let's not forget the money he wasted on Managers, how much did Allen and Holloway cost in compensation to their respective clubs and the 3 year salary costs.

good call forgot about that

[Fox in a Box]

http://www.thebluearmy.co.uk/details.asp?b...6269754|p|536|0

Leicester City made a record £14.2 million loss last season, it was revealed today.

The club blamed the huge deficit on "significant" spending on players as their bid to gain promotion to the Premiership turned into relegation from the Championship.

The Foxes splashed out on a series of signings last season, including strikers DJ Campbell, who cost £2.1 million, and Steve Howard, bought for £1.5 million.

It is thought the figures - which cover the 12 months to May 31 - also include money paid to former managers Martin Allen and Ian Holloway.

Allen left the club after a brief spell in September 2007 and Holloway last May after they were relegated to League One.

Chief executive Lee Hoos said: "There will be a loss again this season, but it should be less.

"We have done quite a lot in terms of rationalising on the costs front - everything from players' salaries to agency fees."

Mr Hoos said losses had soared because they had poured money into bolstering the squad, while the amount of cash coming in had dropped.

City are able to cope with the losses because of multi-millionaire owner Milan Mandaric, who is committed to getting the club into the Premiership.

Mr Hoos would not say when he hoped the club would be profitable again.

Cliff Ginnetta, chairman of Leicester City Supporters' Club, said although the losses were high, fans were confident Mr Mandaric would turn around City's fortunes.

"The fans realise the club is running at a loss," he said.

"I think they will be surprised the figure is as high as that. Fans realise what a great job Milan is doing and are confident he won't let the club go to the wall."

Match receipts for last season were £5.7 million, up from £5.3 million in 2006/07, after average attendance rose to 23,500 from 23,250.

The losses reported today are almost treble the £5.43 million loss City racked up in the 2006-07 season.

The previous record deficit was made during the 1998/99 campaign when the club lost £6.2 million.

Turnover also fell to £14.1 million from £14.7 million the previous year.

Income from sponsorship, executive suites and advertising increased to £3.2 million, compared to £3.1 million previously.

The club would not disclose the income from retailing, conference and banqueting.

It also would not say how much their wage bill was last season. Both figures are expected to be included in accounts due to be submitted to Companies' House shortly.

In 2006/07, City spent £10.7 million on staff wages and took £3.18 million from retailing and conference and banqueting.

Mr Hoos said when compared like-for-like to last season the club had actually made an £11 million loss. This is because £3.2 million of losses were the result of a one-off adjustment in the accounts to reflect a more realistic value for the assets of the club.

The club's debt - mostly owed for the Walkers Stadium - grew to £21.7 million, from £14.3 million.

City are strong favourites to bounce back into the Championship next season.

They are leading League One by nine points and have a 12-point cushion over the third-place team.

[surrifox]

I thought we paid £1.6million for DJC with 500k conditional upon other factors. I'm guessing that these factors did not include a) relegation to the third div. and b) that no goals are scored. There may be a link to the no. of offsides though.

Whatever , this is still a shedload of dosh to lose.

[MC Prussian]

Whoopla, 14 million pounds - a massive amount of money wasted.

Ever since the near-Administration days, this club's made nothing but mistakes financially.

You may blame some of it on bad luck, but the big part of it beggars belief.

Man, we gotta get out of this league. A bigger crowd per average, more TV money.

And hopefully better and more conscious decisions on whom to buy and whom to get on loan.

It's a vicious circle, isn't it? The money spent on players and managers in football these days is tremendous(ly ridiculous).

It's time for a change.

[Ashley]

Ouch.

[Ultra]

Not to mention Agents fees!

Lack of TV revenue must also have cost us.

This is probably one of the reasons we do not have a shirt sponsor next season, lack of TV coverage.

In the current economic climate I don't expect next years results to be any better.

Now we know why MM hasn't got his cheque book out just recently.

It also explains quite a number of other things, like the high admission prices and the deal to host Tigers games..

Mandaric won't be able to sustain these losses indefinitely. Promotion next season will be a necessity. Let's hope Pearson and the players can deliver.

[JakeShingler]

Ooya bleeder.

[Fox in a Box]

It also explains quite a number of other things, like the high admission prices and the deal to host Tigers games..

Mandaric won't be able to sustain these losses indefinitely. Promotion next season will be a necessity. Let's hope Pearson and the players can deliver.

This is a 100% requirement. No pressure then...

Good job were X points clear....lets do it in style eh

[Daggers]

That's a massive hit.

Credit to Mandaric for digging deep into his pocket and not trying to cut and run like other chairmen might have done.

But he'll try to recoup these losses sooner rather than later, which means he'll expect promotion not only this season, but also next.

We are now more dependent on him than ever. In the long term, this is not helpful to us.

Don't believe for a second he wouldn't have sold up had anyone been mad enough to put in an offer - rumour last season was that he was touting the club around if you remember but impending relegation put off all bar one group who then pulled out after Stoke. It could have been a pile of nonsense, but I for one believe the story had legs.

[coale39]

I thought we paid £1.6million for DJ with 500k conditional upon other factors. I'm guessing that these factors did not include a) relegation to the third div. and b) that no goals are scored. There may be a link to the no. of offsides though.

Whatever , this is still a shedload of dosh to lose.

YES! Im sick of seeing the 2.1m figure! I think im gonna put it in my sig because I cant believe its on the blue army site.

[Ultra]

YES! Im sick of seeing the 2.1m figure! I think im gonna put it in my sig because I cant believe its on the blue army site.

That figure came from a very high source within the club and was confirmed at the Foxes Trust AGM last season.

A lot of it was related to payments to agents, who apparently acted for both Campbell and Martin Allen.

[coale39]

That figure came from a very high source within the club and was confirmed at the Foxes Trust AGM last season.

A lot of it was related to payments to agents, who apparently acted for both Campbell and Martin Allen.

500k for agents? wow. So, it would have been £2.6m total if we had got promoted?

[Fox in a Box]

Happy bunch today then!

[Miquel The Work Geordie]

Where's the money gone!?!

Sack The Board!

[Fox in a Box]

Where's the money gone!?!

Sack The Board!

You cant he owns it!

[sbfox]

Dunno if this has been posted, but WACCOE are jizzing all over each other at this....

[Alexikokopops]

Dunno if this has been posted, but WACCOE are jizzing all over each other at this....

They seem to care an awful lot for a team that doesn't care about us. First the shirt voting, now this...

[Shrenchel]

Dunno if this has been posted, but WACCOE are jizzing all over each other at this....

A Leeds mate just phoned me up to gloat about this bollocks.

He said someone on that website who is in the know about financial stuff claims Fryatt is getting 50 thousand a month including bonuses. Surely more than we can afford if it is true??