davieG Posted 23 March 2011 Posted 23 March 2011 http://swissramble.b...ster-city.html? It's very long but some interesting stuff in this article.
Alexikokopops Posted 23 March 2011 Posted 23 March 2011 I came on to post this! I haven't read it yet, but Swiss Ramble writes excellent blogs on the financial side of things so should make for interesting reading
Master Fox Posted 23 March 2011 Posted 23 March 2011 Well I think this article really does confirm we are totally skint. Our debts are growing season by season. The stadium has caused all kinds of difficulties for the club. We're gambling the future of the club at the moment to get in to the premier league. If it fails basically we're fcuked. Not looking so good chaps
sphericalfox Posted 23 March 2011 Posted 23 March 2011 A good read. Objective too. Provides details to the already known facts: Our owners are taking on our debts. They are bankrolling high wages. (as no doubt recommended by Mandy) We have spent bugger all on transfers in the last 3 years. The stadium is strangling us, and whoever agreed to that deal was an idiot. Getting out of the CCC is a gamble worth making but a risky strategy if your owner decides to leave.
sphericalfox Posted 23 March 2011 Posted 23 March 2011 Well I think this article really does confirm we are totally skint. Our debts are growing season by season. The stadium has caused all kinds of difficulties for the club. We're gambling the future of the club at the moment to get in to the premier league. If it fails basically we're fcuked. Not looking so good chaps That was always the case. Even before Mandy came in when we were on our last legs.
Master Fox Posted 23 March 2011 Posted 23 March 2011 That was always the case. Even before Mandy came in when we were on our last legs. Pretty scary figures though i think you'll agree. The deal for the stadium is baffling. Which cretin was responsible for that? Is quite sad to see how he Premier league has pretty much destroyed everything
sphericalfox Posted 23 March 2011 Posted 23 March 2011 What the figures show, is going to make the summer transfer window very interesting. I suspect we may have less money to spend than we would have hoped. There'll be a fair few free transfers, and high wage players coming in. And to the annoyance of some, the loan system will be heavily utilised again.
Master Fox Posted 23 March 2011 Posted 23 March 2011 What the figures show, is going to make the summer transfer window very interesting. I suspect we may have less money to spend than we would have hoped. There'll be a fair few free transfers, and high wage players coming in. And to the annoyance of some, the loan system will be heavily utilised again. There really is no other option for us. I think most fans need to read and understand this article. Looking at the accounts makes me feel a bit wobbly
davieG Posted 23 March 2011 Author Posted 23 March 2011 ....and yet it looks like we could be spending circa £2mill on fancy scoreboards, that's almost our transfer budget for the last 7 years.
sphericalfox Posted 23 March 2011 Posted 23 March 2011 There really is no other option for us. I think most fans need to read and understand this article. Looking at the accounts makes me feel a bit wobbly This isn't news really to anyone who has been paying attention. Though I don't remember reading anywhere that our owner has complained that he has already spent much more than he thought he would. What hope I have is that the £112million that is reported to be the owners wealth is just a drop in comparison to what the 20% stake owner can bring to the fees available so we can compete, but I think that may be wishful thinking that they are being clever so they are not quoted stupid money for a player just because they have deep pockets. So it seems free transfers, out of contract players, and want away loanees will be the order of business. Whilst this is disappointing, I think it's financially prudent. Sven has been backed with wages offered to players, and the calibre available has not been top class, but good enough. I think this summer will be very interesting to see what Sven's contacts can achieve.
21st Century Fox Posted 23 March 2011 Posted 23 March 2011 In all fairness alot of that article you could just delete 'Leicester' and insert any number of Championship clubs names and it'd still make some sense. Interesting read, we all know the risks that we're taking financially and probably shouldn't get carried away if we aren't spending what we'd hoped in the summer.
21st Century Fox Posted 23 March 2011 Posted 23 March 2011 This isn't news really to anyone who has been paying attention. Though I don't remember reading anywhere that our owner has complained that he has already spent much more than he thought he would. What hope I have is that the £112million that is reported to be the owners wealth is just a drop in comparison to what the 20% stake owner can bring to the fees available so we can compete, but I think that may be wishful thinking that they are being clever so they are not quoted stupid money for a player just because they have deep pockets. So it seems free transfers, out of contract players, and want away loanees will be the order of business. Whilst this is disappointing, I think it's financially prudent. Sven has been backed with wages offered to players, and the calibre available has not been top class, but good enough. I think this summer will be very interesting to see what Sven's contacts can achieve. Yeah I remember hearing this a while ago. I don't think he 'complained' as such and some saw it as Mandy not quite giving him the whole story when he took over maybe.
davieG Posted 23 March 2011 Author Posted 23 March 2011 Yeah I remember hearing this a while ago. I don't think he 'complained' as such and some saw it as Mandy not quite giving him the whole story when he took over maybe. How dare you!
21st Century Fox Posted 23 March 2011 Posted 23 March 2011 How dare you! I don't know about Pinocchio but he certainly resembles the Child Catcher from Chitty Chitty Bang Bang with that nose.
Alexikokopops Posted 23 March 2011 Posted 23 March 2011 Obviously I suspected it was quite high, but I ne'er quite realised the extent ofthe ratio of our wages to turnover in the past few seasons!
Bilbo Posted 23 March 2011 Posted 23 March 2011 ....and yet it looks like we could be spending circa £2mill on fancy scoreboards, that's almost our transfer budget for the last 7 years. It baffles me that we are paying this much for a scoreboard and that it is a priority! What are they thinking? Advertising revenue? Very good read though, makes you appreciate how diificult running the club actually is and how loan players are a necessity not a choice a lot of the time.
Haydos Posted 23 March 2011 Posted 23 March 2011 They do write really thorough and well researched blogs. They did another interesting one on how Man City can potentially reach the UEFA finance objective in a few years. Not got time now but i'll give it a read later.
Sly Posted 23 March 2011 Posted 23 March 2011 Well worth finding 15 minutes to read and digest this. It paints a great picture of the Championship and why to a great extent it is unsustainable business model. As good as the Premiership is, it's a poisoned chalice, as failing to gain promotion has crippled many clubs, ours included. Football has become a Billionaires play game and it's only a matter of time before a big Premiership club falls on it's knees. Leeds did it chasing the other poisoned chalice that is the Champions League. Their can only be one winner and to spend more that your income is a clusterf**k waiting to happen.
Merging Cultures Posted 23 March 2011 Posted 23 March 2011 Not as bad as I thought from the comments but I do hope that we can make it back to the Premier league soon, or I fear we are going to be stuck in the Championship for a while, until the investment in the academy kicks in.
dave the caveman Posted 23 March 2011 Posted 23 March 2011 What the figures show, is going to make the summer transfer window very interesting. I suspect we may have less money to spend than we would have hoped. There'll be a fair few free transfers, and high wage players coming in. And to the annoyance of some, the loan system will be heavily utilised again. Of course without knowing how much money the owners are willing to invest your suspicion is nothing more than a stab in the dark. For all you know they may have £100m ready to give to Sven to just throw at anyone. The figures aren't at all suprising. We have owners who are investing in the club by writing off debts. Therefore our balance sheets will always show a loss. The time to worry is when the owners leave us with large outstanding debts. But while they own us any club debts belong to them. The only way they can remove the debts is by writing them off out of their own pocket or finding someone else to take them on, ie a buyer. You would expect that no buyer worth his millions would buy a club with large outstanding debts so in theory, balance sheet losses are not something we need worry about until the owners betray their unwillingness to invest further by beginning to sell assets. While we're still bringing in players at the end of the season just for the hell of it then we are financially strong.
Guest ttfn Posted 23 March 2011 Posted 23 March 2011 Honestly, that was the most interesting and well-written thing I've read about LCFC in ages. Then again, I'm an accountant so that probably says more for how sad I am than how interesting this is. I'm just impressed that they got hold of so much information.
ian_marshall Posted 23 March 2011 Posted 23 March 2011 Fantastic article which is well written if not slightly alarmist. Whilst the author does go into some detail about the financial situation at the club, certain points are less valid and it doesn't account for future commercial opportunities which are on the horizon. Firstly, if we take the example of Burnley as highlighted by the author. Although he draws the readers attention to the increased revenue that the club is pulling in from their season in the Premier League and subsequent parachute payments, claiming a large disparity in income between Leicester and Burnley, no comparison is drawn between their costs. Whilst Burnley may be bringing more money into the business it is likely that their operating costs also increased dramatically from their short spell in the Premier League due to an increased wage bill which they are probably committed to in the Championship. Hull spring to mind in this instance. They too will be receiving Premiership money but up until the Allam's came along were really struggling to manage their expenditure in particularly Jimmy Bullard. Furthermore, the point raised about large spending being a risky strategy to achieve success is hard to argue when 5 of the top 12 spending sides in the division currently occupy 5 of the top 6 places, with a further 3 of the top 12 spending sides capable of securing a playoff place. Therefore, one could argue that if you want to be contesting the top spots you need to spend money. Furthermore, the spending table only looks at the spending of current Championship sides over the past 2 years and furthermore not sides that were promoted and have remained in the Premier League. If I recall correctly, QPR spent a sigificant amount of money under Sousa when Briatore and Ecclestone acquired the club around 3 years ago and further spending has allowed them to add further quality. In addition, West Brom spent a reasonable amount last season whilst Newcastle although not spending big were able to hold onto the majority of their players by directing funds towards their wage bill. Furthermore, the article whilst pointing out the consequences of not making the Premier League fails to address the benefits of increased revenue streams that achieving Premier League status would make to the club. If this status was to be achieved the debt would be greatly reduced and would be easily manageable providing the club didn't excessively increase it's cost base. Finally, no mention is given to the real reason why foreign investors are looking to acquire English teams, that being the demise of Sky's stranglehold on Premier League Broadcasting rights. A lot of foreign investors are strategically positioning themselves awaiting the end of Sky's contract over broadcasting rights with the Premier League ready to pounce on the opportunity to embrace technological advancements and stream games over the Internet on a pay per game basis which will increase broadcast revenue exponentially on a global scale covering Europe, U.S and emerging markets such as Asia. So long as Leicester happen to be in the Premier League when this kicks in, their current debt will look like pennies by comparison.
21st Century Fox Posted 23 March 2011 Posted 23 March 2011 Fantastic article which is well written if not slightly alarmist. Whilst the author does go into some detail about the financial situation at the club, certain points are less valid and it doesn't account for future commercial opportunities which are on the horizon. Firstly, if we take the example of Burnley as highlighted by the author. Although he draws the readers attention to the increased revenue that the club is pulling in from their season in the Premier League and subsequent parachute payments, claiming a large disparity in income between Leicester and Burnley, no comparison is drawn between their costs. Whilst Burnley may be bringing more money into the business it is likely that their operating costs also increased dramatically from their short spell in the Premier League due to an increased wage bill which they are probably committed to in the Championship. Hull spring to mind in this instance. They too will be receiving Premiership money but up until the Allam's came along were really struggling to manage their expenditure in particularly Jimmy Bullard. Furthermore, the point raised about large spending being a risky strategy to achieve success is hard to argue when 5 of the top 12 spending sides in the division currently occupy 5 of the top 6 places, with a further 3 of the top 12 spending sides capable of securing a playoff place. Therefore, one could argue that if you want to be contesting the top spots you need to spend money. Furthermore, the spending table only looks at the spending of current Championship sides over the past 2 years and furthermore not sides that were promoted and have remained in the Premier League. If I recall correctly, QPR spent a sigificant amount of money under Sousa when Briatore and Ecclestone acquired the club around 3 years ago and further spending has allowed them to add further quality. In addition, West Brom spent a reasonable amount last season whilst Newcastle although not spending big were able to hold onto the majority of their players by directing funds towards their wage bill. Furthermore, the article whilst pointing out the consequences of not making the Premier League fails to address the benefits of increased revenue streams that achieving Premier League status would make to the club. If this status was to be achieved the debt would be greatly reduced and would be easily manageable providing the club didn't excessively increase it's cost base. Finally, no mention is given to the real reason why foreign investors are looking to acquire English teams, that being the demise of Sky's stranglehold on Premier League Broadcasting rights. A lot of foreign investors are strategically positioning themselves awaiting the end of Sky's contract over broadcasting rights with the Premier League ready to pounce on the opportunity to embrace technological advancements and stream games over the Internet on a pay per game basis which will increase broadcast revenue exponentially on a global scale covering Europe, U.S and emerging markets such as Asia. So long as Leicester happen to be in the Premier League when this kicks in, their current debt will look like pennies by comparison. Some good points there Any idea when Sky's broadcasting contract is up?
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