Parachute Payments

[supedaj]

Does anyone know what is happening with regards to the parachute payments? I was under the impression each of last seasons relegated clubs got a certain amount each year for 2 years to cushion the relegation financial blow? As one good thing Micky did was to keep the club run without high debts (i.e. shorter contracts etc), can anyone suggest where the parachute payments are going and what they are being used for? I dont believe I've seen any mention of them anywhere on sources.

[Nationwider]

Read THIS article from the Trust site. PPs are mentioned in it.

PPs aren't going to be used as a nice little windfall to line CL's transfer kitty. I imagine they are mostly paying our still considerable debts. No doubt, Foxes Trust or someone else can explain a bit more?

Facts:

04-05 wage bill - £11M

05-06 playing budget - £5M (wages and transfers)

06-07 playing budget - £3M (if we are not promoted)

[supedaj]

ah ok - cheers

[Nationwider]

Bit depressing, isn't it!?

Still, at least we're not in League One.

[supedaj]

lets hope we can say the same thing next year!

(joke!)

[Louise]

Read THIS article from the Trust site.  PPs are mentioned in it.

PPs aren't going to be used as a nice little windfall to line CL's transfer kitty. I imagine they are mostly paying our still considerable debts.  No doubt, Foxes Trust or someone else can explain a bit more?

Facts:

04-05 wage bill - £11M

05-06 playing budget - £5M (wages and transfers)

06-07 playing budget - £3M (if we are not promoted)

111434[/snapback]

Really makes you realise how much we need promotion or at least playoffs (you can get a good profit even if you don't win) next season.

[Ric Flair]

Read THIS article from the Trust site.  PPs are mentioned in it.

PPs aren't going to be used as a nice little windfall to line CL's transfer kitty. I imagine they are mostly paying our still considerable debts.  No doubt, Foxes Trust or someone else can explain a bit more?

Facts:

04-05 wage bill - £11M

05-06 playing budget - £5M (wages and transfers)

06-07 playing budget - £3M (if we are not promoted)

111434[/snapback]

I find that astounding. I wonder how other teams have survived with worse debts than ours. I would like to see what Derby or Ipswich's wage bill is, both teams who have been in the shit and been in this division for more than 2 seasons. Surely they've had a bigger wage bill than £3 million in their 3rd season. We get bigger attendances than both of them aswell! Looks like we're being over cautious which is fair enough, but we'll struggle.

[surrifox]

those 2 clubs own their grounds. we have to meet interest and capital payments to teachers on the Walkers - that will be on an original figure of £30m presumably discounted a bit after administration- the annual accounts will show the amount

[Nationwider]

LCFC company accounts. Order your copy HERE today! Only £1.

Read 'em and weep.

[TrickyTrev]

those 2 clubs own their grounds. we have to meet interest and capital payments to teachers on the Walkers - that will be on an original figure of £30m presumably discounted a bit after administration- the annual accounts will show the amount

111553[/snapback]

This is why we NEED the ground share to go through.

[Newcastle_Fox]

Order Leicester Citys Accounts!

[supedaj]

even with the groudn share - how much will it actually help the team itself? We will get revenue from ticket sales but ultimately it will help with the repayment for teh stadium loan - how much does one anticipate it cutting off the loan duration though? I doubt ground sharing will really give us any real benefit in the short term, in loan repayment or transfer kitty (which is v remote IMO)

[Newcastle_Fox]

Just brought the accounts for a quid, dont really tell much. If anyone wants to have a look at em pm me and i will email em ya they are on a pdf file. It is all profit and loss and not what we have spent and from May 20054

[step]

We dont have any depts, they where all wipped clean when we came out of admin,

[Shum]

We dont have any depts, they where all wipped clean when we came out of admin,

111866[/snapback]

I don't think they were mate.

We pay a certain amount of every £1 of debt we have.

[surrifox]

that's correct. Administration isn't a magic formula for binning debts it allows you time to reschedule debts or pay so much in the pound. The inland rev and customs were not allowed to reschedule or compromise debts to the crown at one time but the law is changed to make it possible. Previously they had one remedy -bankruptcy/liquidation proceedings which meant that everyone except secured creditors lost everything now there is a softer touch approach. You still have to pay. The thing that got up a lot of club's noses was that City got lucky with the change in the approach from inland Revenue. Previously a lot of clubs were wiped out when the taxman came knocking

[Ric Flair]

If you think this club is going to be able to reduce the wage bill to £3 million at the end of next season if we don't get promoted then you can think again! If Levein wants to re-build this club and lay the foundations, he's literally got a season to do it. If we don't get promoted then we've had it.

All of his signings he wants on 3 year deals at the minimum, which means that there aren't going to be many players out of contract next summer. So how on earth will he be able to shave another £2 million off the wage bill but still re-build the club by signing players on long term contracts? Impossible. That's either bollocks, or we're proper ****ed.

Exactly how much were/are we in debt. I was always under the impression that most of our debt was the £30 million stadium, which was surely on a mortgage type re-payment. Now that we don't own that, exactly what are our debts?

[surrifox]

If you think this club is going to be able to reduce the wage bill to £3 million at the end of next season if we don't get promoted then you can think again! If Levein wants to re-build this club and lay the foundations, he's literally got a season to do it. If we don't get promoted then we've had it.

All of his signings he wants on 3 year deals at the minimum, which means that there aren't going to be many players out of contract next summer. So how on earth will he be able to shave another £2 million off the wage bill but still re-build the club by signing players on long term contracts? Impossible. That's either bollocks, or we're proper ****ed.

Exactly how much were/are we in debt. I was always under the impression that most of our debt was the £30 million stadium, which was surely on a mortgage type re-payment. Now that we don't own that, exactly what are our debts?

112004[/snapback]

[Ric Flair]

If you think this club is going to be able to reduce the wage bill to £3 million at the end of next season if we don't get promoted then you can think again! If Levein wants to re-build this club and lay the foundations, he's literally got a season to do it. If we don't get promoted then we've had it.

All of his signings he wants on 3 year deals at the minimum, which means that there aren't going to be many players out of contract next summer. So how on earth will he be able to shave another £2 million off the wage bill but still re-build the club by signing players on long term contracts? Impossible. That's either bollocks, or we're proper ****ed.

Exactly how much were/are we in debt. I was always under the impression that most of our debt was the £30 million stadium, which was surely on a mortgage type re-payment. Now that we don't own that, exactly what are our debts?

112004[/snapback]

112020[/snapback]

???

[reynard]

a 3 million playing budget for the season after next seems very low. i am sure i read that this season Preston have a playing wage bill of 3.5 million on gates of 12000.

this would have to mean an even further reduced squad as £3m = c.20 players at an average of 3K per week or probably less if you include nat ins. contributions paid by the club. it would be hard to get decent players on those kind of wages.