Babylon Posted 2 March 2012 Posted 2 March 2012 From Fox Blogger on Twitter... Leicester City accounts to 31/05/11 reveal a loss of £15.2m for the year (2010 loss £7.5m). The club accounts confirm lcfc spent over £10m in transfer fees alone during the 2011 summer transfer window. lcfc accounts also note that from 01/06/11 to 20/02/12 a total of £25.6m in additional funding has come from its parent company. The accounts say this £25.6m "was used to invest substantially in the playing squad" £4m has been spent on the training ground, new club shop, the pitch, new IT systems and the two big screens at the KP stadium. Leicester City's staff costs to turnover ratio is 95.5%. Financial fair play rules for 2012/13 not yet finalised, but this isn't good. Key quote. Owners have pledged "continued financial support for the foreseeable future."
Dan Posted 2 March 2012 Posted 2 March 2012 That's atrocious, credit on how committed the owners seem with it though, but what little reward they've reaped so far. That's got to be up there with a record loss at this level.
cc_star Posted 2 March 2012 Posted 2 March 2012 The year before, I think we were the highest spenders on agents fees too, so I wonder how much they were adding to the transfer fees, then there's the signing fees And all that's without mentioning wages £25.6m... That's quite a failed experiment, especially when they end up with the manager who was here before they perhaps assisted in him being removed add all that to the upto £40m to buy the club, plus their overspend in 10/11 season and wow, what a flop. Still, we're on the right path now, shame we had to go around the houses spunking money up the wall to get here
dave the caveman Posted 2 March 2012 Posted 2 March 2012 Would be interesting to know the terms of that £25m investment
Dan Posted 2 March 2012 Posted 2 March 2012 £25mil invested on the playing squad You seriously wouldn't believe our team has had that spent on it watching us. As someone rightly says, we're finally on the way up and we're signing the right kind of player again, but jesus christ some of the fvcking money we've blown, it's criminal.
cc_star Posted 2 March 2012 Posted 2 March 2012 Would be interesting to know the terms of that £25m investment That's investment Wonder if that's excluding sponsorship of the stadium & shirts etc, whch wouldn't really be investment but an actual business expense by King Power, not the clubs parent company
Babylon Posted 2 March 2012 Author Posted 2 March 2012 To put into context: In 2009-10, 21 of the 24 made a loss, six of them more than £10m. Bristol City lost £12m and on Tuesday announced losses for 2010-11 of £11m. Last year Ipswich lost £15m, Nottingham Forest £12m and Sheffield United, now in League One, £19m. Current FFP Proposals require clubs to reduce their losses next season to £12m a year, and by 2017 reduce the permitted loss to £5m a year. Of that, £3m would have to be covered by a capital injection from an owner or investor, leaving £2m as the loss clubs are allowed to make.
Dan Posted 2 March 2012 Posted 2 March 2012 That's investment Wonder if that's excluding sponsorship of the stadium & shirts etc, whch wouldn't really be investment but an actual business expense by King Power, not the clubs parent company In the playing squad it says, that will include wages/bonuses as well as transfer fees.
cc_star Posted 2 March 2012 Posted 2 March 2012 To put into context: In 2009-10, 21 of the 24 made a loss, six of them more than £10m. Bristol City lost £12m and on Tuesday announced losses for 2010-11 of £11m. Last year Ipswich lost £15m, Nottingham Forest £12m and Sheffield United, now in League One, £19m. Current FFP Proposals require clubs to reduce their losses next season to £12m a year, and by 2017 reduce the permitted loss to £5m a year. Of that, £3m would have to be covered by a capital injection from an owner or investor, leaving £2m as the loss clubs are allowed to make. Sheffield United obviously didn't manage the transition from Premier League to Championship finances as well as (for example) Pearson helped Hull to do I was going to say promotion is a MUST else there's no benefit to having rich owners, but seeing as most clubs have rich owners, Southampton & Bristol city for example... I suppose it's our owners willingness to invest which is the difference & this 'advantage' will be eroded in future, although it's not really proved to be an advantage since they joined In the playing squad it says, that will include wages/bonuses as well as transfer fees. I know I just wonder if King Power's sponsorships is extra to the 'investment' buy the parent club
Babylon Posted 2 March 2012 Author Posted 2 March 2012 Another bit in the accounts: "Accounts state the club owes approx £28m to its parent company, Asia Football Investments."
cc_star Posted 2 March 2012 Posted 2 March 2012 Another bit in the accounts: "Accounts state the club owes approx £28m to its parent company, Asia Football Investments."
Happy Fox Posted 2 March 2012 Posted 2 March 2012 It further emphasizes the need to get promotion asap.
Guest ttfn Posted 2 March 2012 Posted 2 March 2012 Another bit in the accounts: "Accounts state the club owes approx £28m to its parent company, Asia Football Investments." Certainly not surprising. However, it should be noted that in order for the auditors to have signed off the accounts as a going concern, they will have required a binding commitment from the owners that they will continue to fund the club's liabilities for at least 12 months from the date of signing. Basically, we're fine until this time next year unless Bangkok airport goes tits up. I'd also suggest that the fact that the accounts have been signed off within the 9 month statutory filing period is promising. I'm pretty sure we've been late in some previous years and clubs/companies in real financial danger are routinely late as they wrestle with their auditors to get the accounts signed.
Guest Col city fan Posted 2 March 2012 Posted 2 March 2012 £25mil invested on the playing squad You seriously wouldn't believe our team has had that spent on it watching us. As someone rightly says, we're finally on the way up and we're signing the right kind of player again, but jesus christ some of the fvcking money we've blown, it's criminal. This...... Financial prudence IS important in any walk of life including football... The squad finally looks like 'gelling' but fooks sake it's taken long enough! I have every trust in Pearson to get it right and the words of Berner, a man I have real respect for, only strengthen that feeling.
THEFATBASTARD Posted 2 March 2012 Posted 2 March 2012 Am I the only one who think the figures are not too bad considering? its not the amount the debt is , its the ability to service and manage the debt that counts..when you consider the prize at the end of it , this amount of speculation is understandable...other clubs in this league are living hand to mouth and losing considerable sums without prospects of promotion..Im relaxed about these figures...peel me a grape.
Happy Fox Posted 2 March 2012 Posted 2 March 2012 http://www.insidermedia.com/insider/midlands/67005-foxes-double-losses#.T1C7o6FjAyw.twitter Annual losses have more than doubled at Leicester City FC despite a rise in turnover, Insider can reveal. But since the year end owner Asia Football Investments has injected a further £25.6m into the club as part of a promotion push. The Foxes used the cash to invest "substantially" in the playing squad, with more than £10m spent in the summer on players including Kasper Schmeichel, Jermaine Beckford, Paul Konchesky and captain Matt Mills. More than £4m was also invested in the training ground, new club shop, new playing pitch, IT system and two LED screens, according to the latest accounts for the year to 31 May 2011. This investment was supported by "large", new sponsorship agreements with Air Asia and Amazing Thailand, as well as a three-year rights deal to rename the ground King Power Stadium. "The primary aim of the club will be to challenge for a top-six position in the Championship in the current season with the ultimate objective of promotion to the Premier League," the directors' said in the accounts. The 2010/11 season was a time of transition for the club, which started "disappointingly" under the management of Paulo Sousa. The former Portuguese international was sacked after just nine league games in charge, after the team sank to the bottom of the league. Former England manager Sven Goran Eriksson was brought in, with the club finishing the season in seventh, having flirted with the play-off spots. Turnover at Leicester City increased to £17.4m for the year, compared with £16.2m in 2010. A total of £1m came from the club's cup runs, including ties against Manchester City FC. Its 2011 revenue was a "strong performance" considering the team didn't reach the play-offs as it had done in 2009/10 missing out on a £800,000 windfall, the club added. Pre-tax losses widened for the period to £15.2m, compared with £7.5m in the previous 12 months, as operating and staff cost increased. Operating costs, excluding staff pay, rose by £6.3m to £15.5m. Leicester also invested in the playing squad during the season causing the staff costs to rise by £2.1m to £16.6m. Player trading achieved profits of £1.8m. In August 2010, UK Football Investments sold the club to Asia Football Investment. The new owner, Aiyawatt Raksriaksorn, injected £15.1m of new working capital into the business by way of parent company loans. Cash balance at the year end has dropped to £244,000, down from £1.2m in 2010. Average attendances during the season were 23,709, slightly down from 23,943 in 2009/10, which were the fourth highest in the league. "Finally at the end of the season the club fell frustratingly short of making the play-offs and an inconsistent start to the current season has led to Sven leaving the club," the accounts added. Former manager Nigel Pearson was appointed as new manager on 15 November 2011, following Eriksson's departure in October. In June 2011 Susan Whelan was appointed as chief executive to replace Lee Hoos, and Simon Capper took over from Mark Johnson as finance director and company secretary.
The Padster Posted 2 March 2012 Posted 2 March 2012 Meh, we've had a lot of changes over the past 12/18/24 months. I would expect things to start calming down a little from now on, no more spunking money on transfers, no more backroom/boardroom changes, just get our heads down and get on with it.
clare Posted 2 March 2012 Posted 2 March 2012 Meh, we've had a lot of changes over the past 12/18/24 months. I would expect things to start calming down a little from now on, no more spunking money on transfers, no more backroom/boardroom changes, just get our heads down and get on with it. This - next year's accounts will make more interesting reading I suspect!
Happy Fox Posted 2 March 2012 Posted 2 March 2012 Our squad of players is good enough to get promotion, it remains to be seen whether we can get into the playoffs this season, but the financial figures really impose on us that automatic promotion is a necessity next season. Put it this way I don't think we can afford to stay in this division for no longer than 2 seasons we have to get up.
kingfox Posted 2 March 2012 Posted 2 March 2012 All these teams, in money troubles, we owe £25.6 million of invested money to King Power, that's just about ridiculous. We will be going to the dogs soon, like many other clubs, football this week has become a laughing stock.
THEFATBASTARD Posted 2 March 2012 Posted 2 March 2012 I disagree with all the panic on here..portsmouth are in excess of £100m in debt..with no assets...we are miles away from anything like that.
Babylon Posted 2 March 2012 Author Posted 2 March 2012 I imagine we will receive a press hammering fairly soon when all the numbers get out.
Mack Posted 2 March 2012 Posted 2 March 2012 So they could walk away and we would immediately have an instant debt of £28 million. Very scary.
yorkie1999 Posted 2 March 2012 Posted 2 March 2012 drop in the ocean in the grand scheme of things, last year ferrari spent 500 million on 2 cars and didn't win anything!
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