Losses of £5m-£6m

[Babylon]

Leicester City will announce losses of at least £5m-£6m in the next few weeks, owner Milan Mandaric has revealed.

The club's annual financial report is due out soon and Mandaric said that the report would not make good reading for City fans.

But he assured supporters that all the losses were being personally covered by him and that the club had no serious financial concerns.

He also emphasised that, although the club still has a debt of £17.5m from a loan taken out three years ago on the stadium, City does not have any further debt.

Mandaric, who has absorbed losses of more than £20m since taking charge three years ago, said: "It doesn't look good because we have a lot of losses.

"Again I am covering those losses but it is nothing that looks as though we are in trouble or that we will be unable to pay our bills or our players because I am 100 per-cent behind the club ."

Mandaric added: "It didn't look good a few years ago and we had a lot of losses. Going down certainly didn't help and the economy hasn't helped.

"Anywhere but in the Premier League, this stadium is a liability financially because you have to service it.

"We have a £17.5m debt that has to be serviced.

"But in 10 years it could be a real asset and you could have something that is making you money and is profitable.

"There is no money in football unless you are in the Premier League, and even there you have to be careful.

"You invest in players for £5m and hope that they become worth £10m. That is investment.

"Here you have to subsidise the losses. This year it will be at least £5m-£6m.

"It is not something I didn't know about or wasn't prepared for. It is a little more than I thought it would be, due to relegation."

Mandaric added that covering the shortfall would cost him considerably more than the final figure in the report.

"Something that is really sad is I wish I was just £5m-£6m million out of pocket," he added.

"But in today's economy to bring in my money I have to resolve something and free up some of my equity. I need to resolve £10m to bring £5m-£6m here.

"It is always coming out of my pocket, out of my money in America which I work very hard to earn and pay all my taxes on, to bring here to support the club. All the money comes from me personally and we don't take out loans.

"I took out a debt on the stadium when I first arrived and it is the same one, and, when we go to the Premier, we will try to reduce that."

Shame it's taken 3 years for someone to ask that question.

[Kilworthfox]

Leicester City will announce losses of at least £5m-£6m in the next few weeks, owner Milan Mandaric has revealed.

The club's annual financial report is due out soon and Mandaric said that the report would not make good reading for City fans.

But he assured supporters that all the losses were being personally covered by him and that the club had no serious financial concerns.

He also emphasised that, although the club still has a debt of £17.5m from a loan taken out three years ago on the stadium, City does not have any further debt.

Mandaric, who has absorbed losses of more than £20m since taking charge three years ago, said: "It doesn't look good because we have a lot of losses.

"Again I am covering those losses but it is nothing that looks as though we are in trouble or that we will be unable to pay our bills or our players because I am 100 per-cent behind the club ."

Mandaric added: "It didn't look good a few years ago and we had a lot of losses. Going down certainly didn't help and the economy hasn't helped.

"Anywhere but in the Premier League, this stadium is a liability financially because you have to service it.

"We have a £17.5m debt that has to be serviced.

"But in 10 years it could be a real asset and you could have something that is making you money and is profitable.

"There is no money in football unless you are in the Premier League, and even there you have to be careful.

"You invest in players for £5m and hope that they become worth £10m. That is investment.

"Here you have to subsidise the losses. This year it will be at least £5m-£6m.

"It is not something I didn't know about or wasn't prepared for. It is a little more than I thought it would be, due to relegation."

Mandaric added that covering the shortfall would cost him considerably more than the final figure in the report.

"Something that is really sad is I wish I was just £5m-£6m million out of pocket," he added.

"But in today's economy to bring in my money I have to resolve something and free up some of my equity. I need to resolve £10m to bring £5m-£6m here.

"It is always coming out of my pocket, out of my money in America which I work very hard to earn and pay all my taxes on, to bring here to support the club. All the money comes from me personally and we don't take out loans.

"I took out a debt on the stadium when I first arrived and it is the same one, and, when we go to the Premier, we will try to reduce that."

Shame it's taken 3 years for someone to ask that question.

Well I believe the more this charachter speaks, the more obvious it becomes that he wants rid of our football club. I cross my fingers someone comes along who is much less interested in this type of spin & hype and is more interested in positive results and the Leicester fans support.

[Zingari]

sounds a fairly honest assessment really .

[Fox in a Box]

He employed Martin Allen, He sanctioned players that were trash including N' Gotty, DJ Campbell, Kaebi, and so many others to mention, yes each team has a few but we had a revolving at one point. He also has to pay off MA. Not forgetting Mr Holloway being lined up after Megson.

Milan OK you dipped into your funds but these are your mistakes not the fans...

If you dropped the prices slightly for ST holders and match tickets you would have a ground swell.

Thanks for dipping into your funds but WHEN we get promoted ....this years next year whatever you will recoup the money.

As for the Servicing of the £17.5M this is for the Stadium and is a tangable asset.

Things are looking up thou and the team is the strongest it has been in the past 5 years.

[Monk]

If we got promoted I wonder if we would pay off the stadium straight off?

People are too quick to shoot down Mandaric. If it wasnt for a wealthy backer like him, I believe that we would be insolvant.

[Fox in a Box]

If we got promoted I wonder if we would pay off the stadium straight off?

People are too quick to shoot down Mandaric. If it wasnt for a wealthy backer like him, I believe that we would be insolvant.

Correct.... but he made a huge error with MA.

[Guest Bilo]

Well I believe the more this charachter speaks, the more obvious it becomes that he wants rid of our football club. I cross my fingers someone comes along who is much less interested in this type of spin & hype and is more interested in positive results and the Leicester fans support.

I agree with you.

I've been saying for over a year that if we're promoted on May 22nd at Wembley, Milan will start looking for buyers on the 24th and recoup some cash.

[davieG]

I suspect this has as much to do with his up coming court case then any desire to be open to the fans.

Softening up his image is hardly an unknown defence tactic. We'll probably hear next that his real name is Brian.

[Fox in a Box]

I suspect this has as much to do with his up coming court case then any desire to be open to the fans.

Softening up his image is hardly an unknown defence tactic. We'll probably hear next that his real name is Brian.

Yep, he wants to be transparent to show his good side just before the case on the 11th?

Brian is a leicester fan!

[leicesterseddon]

If we got promoted I wonder if we would pay off the stadium straight off?

People are too quick to shoot down Mandaric. If it wasnt for a wealthy backer like him, I believe that we would be insolvant.

Erm...no. Mandaric will cut and run, and the next owners will do exactly as he has done (i.e. underwrite the debt on the stadium, service it but not pay it off), whilst spending as little as possible on players (a la Derby) and pocket as much of the TV money as is possible.

[DeclanMC]

To be honest guys, you can criticise him all you like, but we have spent some pretty decent money on players in the past few years, and most have been managerial signings believe it or not, so he has never failed to back up his managers with money, and most clubs can't say that now can they?

[Zingari]

To be honest guys, you can criticise him all you like, but we have spent some pretty decent money on players in the past few years, and most have been managerial signings believe it or not, so he has never failed to back up his managers with money, and most clubs can't say that now can they?

agreed , he has his faults of course , but as far as club chairmen go , i think he is in the better pile

[CosbehFox]

Well I believe the more this charachter speaks, the more obvious it becomes that he wants rid of our football club. I cross my fingers someone comes along who is much less interested in this type of spin & hype and is more interested in positive results and the Leicester fans support.

I suspect 70% are in the same boat. I just hope he is telling the true in that the club's debts are managed by his money as opposed to a loan from a bank.

[Craig]

Mandaric Video

[Trav Le Bleu]

I embedded it for you.

Weeeeeell, it's better than 15 minutes (yup 15 minutes of your precious life) of Milan.

[Flynny]

The most important thing is that our debt is at the very least constant rather than growing. Fair play.

The stadium debt was £15.9 million when he arrived, what's gone on there? There was speculation he'd have to refinance when he bought the club, perhaps we're paying it off over a longer term but paying more.

There's also wriggle room there in that he says "the money is from me personally, we don't take out loans" doesn't necessarily mean that we're not loaning the money from Milan rather than it being invested.

I'd be interested to know how much of the loss the stadium loan accounts for given that DJ, Dickov's and Clem's contracts will have cost us upwards of £2 million between them this season. We could be in a lot better shape this time next year.

[StanSP]

Mandaric Video

Like the way he says Natalie's name

If we make promotion, it's hello to Premier League .Goodbye Milan

[Guest]

The stadium debt was £15.9 million when he arrived, what's gone on there?

Interest, I guess. That or someone's been telling porkies.

[OriginalRobboFOX]

Good time to announce this on the back of an uplifting great victory... Softens the blow slightly...

[samlcfc]

Listened to a interview with him on bbc leicester whilst i was driving about. From what it sounds, he is at the moment doing a big job for us. Obviously, hes only doing it in the hope that hell start to make money in the future but at the moment considering he said he wasnt expecting it, im very grateful. Going on what I heard Id hate to be without the guy

[maddog]

Leicester City will announce losses of at least £5m-£6m in the next few weeks, owner Milan Mandaric has revealed.

The club's annual financial report is due out soon and Mandaric said that the report would not make good reading for City fans.

But he assured supporters that all the losses were being personally covered by him and that the club had no serious financial concerns.

He also emphasised that, although the club still has a debt of £17.5m from a loan taken out three years ago on the stadium, City does not have any further debt.

Mandaric, who has absorbed losses of more than £20m since taking charge three years ago, said: "It doesn't look good because we have a lot of losses.

"Again I am covering those losses but it is nothing that looks as though we are in trouble or that we will be unable to pay our bills or our players because I am 100 per-cent behind the club ."

Mandaric added: "It didn't look good a few years ago and we had a lot of losses. Going down certainly didn't help and the economy hasn't helped.

"Anywhere but in the Premier League, this stadium is a liability financially because you have to service it.

"We have a £17.5m debt that has to be serviced.

"But in 10 years it could be a real asset and you could have something that is making you money and is profitable.

"There is no money in football unless you are in the Premier League, and even there you have to be careful.

"You invest in players for £5m and hope that they become worth £10m. That is investment.

"Here you have to subsidise the losses. This year it will be at least £5m-£6m.

"It is not something I didn't know about or wasn't prepared for. It is a little more than I thought it would be, due to relegation."

Mandaric added that covering the shortfall would cost him considerably more than the final figure in the report.

"Something that is really sad is I wish I was just £5m-£6m million out of pocket," he added.

"But in today's economy to bring in my money I have to resolve something and free up some of my equity. I need to resolve £10m to bring £5m-£6m here.

"It is always coming out of my pocket, out of my money in America which I work very hard to earn and pay all my taxes on, to bring here to support the club. All the money comes from me personally and we don't take out loans.

"I took out a debt on the stadium when I first arrived and it is the same one, and, when we go to the Premier, we will try to reduce that."

Shame it's taken 3 years for someone to ask that question.

Surely he hasn't absorbed £20m worth of loses himself, i thought he was only worth about £70m and most of that is the assets he owns not cash.

I just don't see how he's absorbed £20m of loses himself with his own money when he's only worth less than 4 times that.

[Edmund]

sounds a fairly honest assessment really .

People are too quick to shoot down Mandaric. If it wasnt for a wealthy backer like him, I believe that we would be insolvant.

To be honest guys, you can criticise him all you like, but we have spent some pretty decent money on players in the past few years, and most have been managerial signings believe it or not, so he has never failed to back up his managers with money, and most clubs can't say that now can they?

I suspect this has as much to do with his up coming court case then any desire to be open to the fans.

Softening up his image is hardly an unknown defence tactic. We'll probably hear next that his real name is Brian.

Good time to announce this on the back of an uplifting great victory... Softens the blow slightly...

Have a day off lads.

Makes me laugh this anti Mandaric brigade. Any old excuse to demean the man.

[Chrysalis]

what he is saying does sound hard to believe.

given his age its not that unreasonable he spending a big portion of his wealth on us, given that he wont take it with him.

Also he did say he is resolving assets to get the cash ie, its not liquid cash.

looking at it tho it is believable, the liverpool owners were unable to get more loans and they are a massive club, result is their owners having to sell in america, seems MM is in a mirroring situation.

[dandannieldanok]

He employed Martin Allen, He sanctioned players that were trash including N' Gotty, DJ Campbell, Kaebi, and so many others to mention, yes each team has a few but we had a revolving at one point. He also has to pay off MA. Not forgetting Mr Holloway being lined up after Megson.

Milan OK you dipped into your funds but these are your mistakes not the fans...

If you dropped the prices slightly for ST holders and match tickets you would have a ground swell.

Thanks for dipping into your funds but WHEN we get promoted ....this years next year whatever you will recoup the money.

As for the Servicing of the £17.5M this is for the Stadium and is a tangable asset.

Things are looking up thou and the team is the strongest it has been in the past 5 years.

Agreed, a lot of this cash being paid out of his own pocket is to cover and rectify his own mistakes.

If we make promotion, it's hello to Premier League .Goodbye Milan

Would need to find a buyer first, easier said than done. And it wouldn't necessarily be a good thing. Mandaric selling out to Gaydamak (who never had the commitment, knowledge or funds to run a Premier league football club) started Pompey's financial woes.

[Daggers]

given his age its not that unreasonable he spending a big portion of his wealth on us, given that he wont take it with him.

You think he's like some mad old bint leaving his money to the cat home?

Ace.