luckyalex13 Posted 11 February 2011 Posted 11 February 2011 Hi, Im new to this so apologies for any mistakes or if this is a repeated thread but i was just wondering where the money to sign the Yak etc has come from, our Thai owners are rich but only has a personal wealth of 113million. Anyone have the answer? Thanks
surrifox Posted 11 February 2011 Posted 11 February 2011 probably not but does it really matter? You appear in danger of confusing football with real life and trying to understand or even establish a link between football finance and economic reality- that way madness lies. LCFC goes from boom to bust on a cyclical basis so enjoy the ride - the only thing real is the bemused supporter Oh welcome by the way- not everyone on here is as cynical as me
LanguedocFox Posted 11 February 2011 Posted 11 February 2011 We've not actually spent that much money buying players. The main additional cost on what we shelled out last season will be on salaries, and I would guess that they are operating on the basis of getting big payback when we reach the exalted heights of the Premier League. Mandaric had the same idea, but had the chance to get out with some wedge, and move on to piss off another bunch of supporters. On the other hand, Surrifox is entirely correct: most clubs operate in a kind of Alice in Wonderland state, where the Mad Hatter's rules are what clubs live by.
Nick Posted 11 February 2011 Posted 11 February 2011 Some wages are reportedly being paid from 'Personal Wealth' ie not from the company wealth of the Thai owners........ that's the closest I would imagine we are going to get to any hard answers.
thybluefox Posted 11 February 2011 Posted 11 February 2011 An outlay of about £4million (going off that other thread) is nothing when you think that the return for getting promoted (which is looking increasingly likely) is £90million.
Edmund Posted 11 February 2011 Posted 11 February 2011 Where has all the money we have to spend actually come from? A bank
Houdini Logic Posted 11 February 2011 Posted 11 February 2011 A bank Exactly. Would hate people to be under the impression that this is coming out of the new owner's pockets. You don't make money in business by doing silly things like that.
cc_star Posted 11 February 2011 Posted 11 February 2011 I assume they've set up a new business which purchased us, the new business would have received some capital from them, some capital from the other investor and they would have borrowed money... They would then have a lending agreement with company they set-up to own us and effectively the club would owe them everything (their capital & what they've borrowed, presumably at a higher interest rate than they themselves have borrowed it at to allow their company to make money) This money comes from future earnings of the club, tickets sales, merchandising, transfers & of course TV money which if we get into the Prem is large enough to pay for everything, of course the problems start if you don't get in or stay in the Prem because its likely you don't have sufficient revenues to pay off everything you owe. At the moment there's an excellent chance (I would even go as far as saying highly likely) chance of us making it into the play-offs, but what happens when we get in to them is a complete lottery. Basically the lending structures used in football clubs are very complicated, its probable that we'll never know, but promotion, no promotion or even bust you can be certain the people with money will make money, the saving grace for the us fans is that for the money-men to make the most money they need to challenge in the Prem & occasionally win stuff, so thankfully our & their aims are aligned, we all want the same thing. This isn't meant to sound disparaging of our owners, who seem to want to relate more closely with the fans than any owners I can remember and obviously have been good for the club up to now & presumably will be in the future, its just generally how things work at a base level now matter how much they love the fans
Itsthejoeker Posted 11 February 2011 Posted 11 February 2011 I thought I heard there were more Thai Investors involved?
luckyalex13 Posted 11 February 2011 Author Posted 11 February 2011 thats what i heard @itsthejoeker???
Dan Posted 11 February 2011 Posted 11 February 2011 Pretty sure that third bloke, Iman something? Sure he's got a lot of money behind it.
Itsthejoeker Posted 11 February 2011 Posted 11 February 2011 thats what i heard @itsthejoeker??? Yeah, can't remember where, but they said we are 80% owned by Thai Investors an 20% by some other company. And that Tops is just being the frontman
cc_star Posted 11 February 2011 Posted 11 February 2011 The club is owned by Asian Football Investments which is a consortium owned with 80:20 split between the Raksriaksorn's (Thai) and (Indonesian) Iman Arif's company called Cronus Sports Management, this is an investment fund which Indonesian's can invest in and obviously get a share of (20% of) the profits
MrSpaM Posted 11 February 2011 Posted 11 February 2011 King Power are probably financing our entire squad from there perfume department in their shopping center in bangkok alone, the complex is HUGE
Tommy G Posted 11 February 2011 Posted 11 February 2011 I assume they've set up a new business which purchased us, the new business would have received some capital from them, some capital from the other investor and they would have borrowed money... They would then have a lending agreement with company they set-up to own us and effectively the club would owe them everything (their capital & what they've borrowed, presumably at a higher interest rate than they themselves have borrowed it at to allow their company to make money) This money comes from future earnings of the club, tickets sales, merchandising, transfers & of course TV money which if we get into the Prem is large enough to pay for everything, of course the problems start if you don't get in or stay in the Prem because its likely you don't have sufficient revenues to pay off everything you owe. At the moment there's an excellent chance (I would even go as far as saying highly likely) chance of us making it into the play-offs, but what happens when we get in to them is a complete lottery. Basically the lending structures used in football clubs are very complicated, its probable that we'll never know, but promotion, no promotion or even bust you can be certain the people with money will make money, the saving grace for the us fans is that for the money-men to make the most money they need to challenge in the Prem & occasionally win stuff, so thankfully our & their aims are aligned, we all want the same thing. This isn't meant to sound disparaging of our owners, who seem to want to relate more closely with the fans than any owners I can remember and obviously have been good for the club up to now & presumably will be in the future, its just generally how things work at a base level now matter how much they love the fans Whatever money they have put in they will want back at the end of the day. I'm guessing we will all be able to pull the accounts off companies house in about a years time and we can all have a nose. Whatever they put in (apart from shareholdings) will presumably be set up as a directors loan account therefore the more money they inject, the bigger the creditor will get. Eventually when they have achieved promotion they will want to extract the money they have put in (and more assuming we are profit making) to reduce their DLA back to zero. That will be years to come I'm sure. How many prem teams are profit making these days? Not many. Arsenal have a fantastic balance sheet but thats mainly due to the flats they built on the old highbury grounds when they knocked it down, and also a sensible wage structure!! It will be interesting to see if it is part of a group of companies or has an ultimate parent or any sub holdings. Deloitte specialise in sports clubs so I guess they will be their advisors.
1991FOX Posted 11 February 2011 Posted 11 February 2011 You've got it wrong, their so called 'wealth' is greater than £113m. Everything they own including businesses and property are classified as wealth, that figure of £113m is their net worth ie how much money is in the bank. The rest of their money is sifting through the businesses so i suspect their wealth is x10 that figure or it could be more!
Mack Posted 11 February 2011 Posted 11 February 2011 Best point brought up here in ages, and something I have asked myself many times. Lets' hope it's not all financed/borrowed and all comes on top 18 months down the line.
m00nie Posted 11 February 2011 Posted 11 February 2011 our Thai owners are rich but only has a personal wealth of 113million. Thanks only.. ..
Lineker's Left Foot Posted 11 February 2011 Posted 11 February 2011 I have 'googled' Iman Arif and this guy is runs Bumi Industries - apparently one of the biggest companies in the Far East - but the owners are the Bakrie's, who I believe are worth about £3-4billion - seriously !! It says in one of the articles, that the Bakrie's are investing heavily into City.
Zingari Posted 11 February 2011 Posted 11 February 2011 ...........yes , and pimping , lots of it comes from that too
Houdini Logic Posted 11 February 2011 Posted 11 February 2011 Dont forget the hos Zingari....The hos.... Now that really is a fine Ho
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