New LCFC Accounts

[Jace]

Much better than I was expecting concidering the ammount of investment we made this last year. We made a loss of £14 million in the 2008/09 Season when we were in League 1 and in comparison our squad value is far greater now with the likes of Nugent, Schmeichel and Bamba.

[Happy Fox]

FFP is going to happen it is inevitable I just hope we get ourselves sorted before that happens i.e get promoted or cut down in costs considerably.

[Guest ttfn]

So they could walk away and we would immediately have an instant debt of £28 million.

Very scary.

£54 million.

[Les-TA-Jon]

Wait, so we bought all these players over the last two seasons, improved the training facility, shop and stadium and it all cost money? How strange.

And if i'm reading correctly, we've not made a return on that expenditure yet either? How odd.

[yorkie1999]

Still don't get this FFP, surely what its all about is you're only allowed to make a certain percentage loss based on your income, gate sales sponsers etc. If our shirt sponsers, our owners, want to sponser us for 100 million a year, then surely that is classed as part of the clubs income, so we are sticking to the rules. The FFP will affect clubs that don't generate enough income, through whichever means, to cover their outgoings.

[Jimmy]

training ground redeveloped (a 1 off investment), pitch improved (to a point we won't have to relay it so often), the big screens (1 off investment) and the fact we HAD to sign so many players last summer, we barely had 11 senior pro's at the time, meant it was always going to be fairly big loss.

We now have the basis to build on from a squad point so won't need to buy as many players in future, won't have to spend massively on the pitch (other then the usual summer relaying) or training ground (unless they decided to expand further). I'd say off the field, we're pretty much set for the premier league and with some fine tuning of the playing squad we're in good shape to get there on the pitch too

[Tommy G]

just knew it would get this reaction.

Who has read the auditors report then? have the auditors stated the Co is not a going concern? As long as the owners pledge financial support in writing (why wouldn't they, how will it benefit them to walk away and make a loss) then what exactly is the problem?

Yes the FFP rules may change things and a lot is riding on getting in the prem, but for people to start sh*tting bricks over it is no need. there will be nowhere near that investment in the players/training ground/wages again this summer so it's likely next years accounts will show an improved loss regardless of prem status.

It's frightening how many Co's are run on a loss basis in the UK and abroad but that is life I'm afraid.

People will panic that we'll ''Do a Pompey'' but I'm sure there are some smart people behind this operation and the Thais wouldn't have thrown that money in if they couldnt afford it/continue to do so. It's still Hazy who exactly is providing the finance aswell.

Let the club and Pwc worry about, fact is no-one on here can change it.

[Tommy G]

Plus the fact our new squad will have improved contracts which will be classified as 'assets'' on the balance sheet, then amortised over the length of the deal, therefore this is likely to make strengthen our balance sheet as we have more players here on big contracts than the same period last season.

The investment on the training ground is capital investment aswell, not exactly expenditure in accounts terms but this will be capitalised aswell. That is just scratching the surface of what is likely to be a complicated set of accounts!

[Guest ttfn]

training ground redeveloped (a 1 off investment), pitch improved (to a point we won't have to relay it so often), the big screens (1 off investment) and the fact we HAD to sign so many players last summer, we barely had 11 senior pro's at the time, meant it was always going to be fairly big loss.

None of that stuff affected the accounts. They are made up to 31 May 2011, before this expenditure happened.

Even if it did happen before 31 May, capital expenditure (e.g. Training ground improvements, stadium re-branding, player purchases) are depreciated over the length of their useful life.

As such, assuming all these things had a useful life of 3 years - you'd only see 1/3 of the expenditure hitting the club's profit each year.

Next year's accounts will be disgusting. Assuming the wages are anything like what has been suggested, we'll be looking at a loss of £30 million plus.

[Daggers]

The only reason the club is in its current state is the willingness of the present owners to throw good money after bad, from an unknown source, for undisclosed reasons. It will continue for a finite length of time until their objective is met or they have given up on trying to achieve it and cut their loses. None of the consortium are born, supported or owe an allegiance to the club.

When this happens it will leave the club with large debts to their consortium on a preferential basis and a financial need which outstrips income. I simply do not believe this is a recipe for long-term success or stability.

History has shown that promotion is possible without investment on this scale, ignoring the fact that most of this money has been pissed away. I didn't believe the Thais offered a solution and I still don't; I believe they endanger the long term interests of the club and the longer people do nothing but turn a blind eye and pray for glory the worse the final result will be.

[steveherbe]

Good god Daggers, you're a miserable git and no mistake! Hope you're not stood next to me tomorrow - still, you'll probably be at home listening on Foxes Player ready to phone in and MOAN SOME MORE! Lighten up man, it's friday afternoon. Daggers, the Victor Meldrew of FoxesTalk.

[THEFATBASTARD]

The only reason the club is in its current state is the willingness of the present owners to throw good money after bad, from an unknown source, for undisclosed reasons. It will continue for a finite length of time until their objective is met or they have given up on trying to achieve it and cut their loses. None of the consortium are born, supported or owe an allegiance to the club.

When this happens it will leave the club with large debts to their consortium on a preferential basis and a financial need which outstrips income. I simply do not believe this is a recipe for long-term success or stability.

History has shown that promotion is possible without investment on this scale, ignoring the fact that most of this money has been pissed away. I didn't believe the Thais offered a solution and I still don't; I believe they endanger the long term interests of the club and the longer people do nothing but turn a blind eye and pray for glory the worse the final result will be.

When the war starts, stay out of my trench...

[Happy Fox]

http://www.lcfc.com/page/LatestNews/0,,10274~2631183,00.html?

"Investing For The Future"

Leicester City Football Club Ltd is pleased to announce its financial results for the year ending 31 May, 2011. The financial year was one of transition as the Club was taken over by Thai investors through Asia Football Investments PTE representing Vichai and Aiyawatt Raksriaksorn, which has provided significant new investment into the Club to finance its ambition to be a Club which can:

• achieve and sustain Premier League status;

• have a stadium in the King Power Stadium to be proud of and to have a training ground and other facilities of true Premier League standards;

• be managed in an efficient, sustainable and business-like manner;

• be proud of its heritage and fans.

The Club recorded losses in the year to 31 May, 2011 of £15.2m (2010: £7.5m) - an increase of £7.7m on the losses in the previous year. Today's announced results relate to the 2010/11 season, in which the Club was playing in the Football League Championship and narrowly failed to reach the play-offs.

Most of the increase in the loss is as a consequence of an increase in the playing salary budget, arising from the Club signing loan and owned players to supplement the playing squad in the second half of the 2010/11 season. The Club's strategy of investing in a strong squad to fight for a promotion place has led to increases in staff costs of £16.6m, compared with £14.5m in 2009/10. Towards the end of the season, several of the key members of the squad also agreed new extended contracts with the Club.

Turnover increased by over £1 million to £17.4m (2009/10 £16.2m), primarily due to increases in commercial revenue and supplemented by television income from fixtures attractive to a global audience.

Match receipts increased, as a consequence of a series of fan focused ticket initiatives, while average league attendances remained relatively stable with a slight decrease to 23,709 (2009/10: 23,943) - in line with clubs of a comparable size and league position. Season ticket sales have continued to increase year on year with sales in the current season reaching 16,102 from 15,150 in 2010/11.

Leicester City Chief Executive Officer Susan Whelan said: "These results indicate the ambition and intention of Leicester City Football Club Limited and its owners to achieve excellence in everything that we do. We continue to invest in both the playing squad and the capital assets of the Club, but we are also working hard to increase our commercial revenue. This season's signing of major sponsorship agreements, with King Power - in relation to the naming rights of the stadium - and Air Asia as the Club's Airline Partner, which followed the sponsorship agreement of 2010/11 with Singha Beer, is part of our strategy to increase income and to build our profile in the UK and the Far East.

"The goal of this Club remains to achieve promotion at the earliest possible time. We believe that we now have a robust infrastructure and management team in place to sustain the long-term future of the Club.

"The Club would like to thank all its fans and partners for their exceptional support over the last 12 months, which has been a time of major change. We believe that we can continue to be an integral part of the broader community of Leicester with their on-going help and support. The progress made around the LCFC Foxes Foundation's "One In A Million" charity initiative this season, and the establishment of the Foundation as a long-term charitable organisation itself, is a true example of team-work between the Club, its staff and the fans and is an indication of how we can all work together to achieve our goals.

"We will continue to develop and improve supporter facilities at the Club in the coming seasons, and to increase our participation in the Leicester community."

The profit and loss account for the year ended May 31, 2011 is summarised as follows:

Year ended May 31, 10

£'000 Year ended May 31, 09

£'000 Turnover 17,357 16,213 Amortisation of purchased goodwill 0 - Operating costs excluding staff costs (15,079) (9,199) Staff costs (16,577) (14,478) Operating profit/(loss) (14,299) (7,464) Profit/(loss) on disposal of players 1,815 1,425 Net interest (2,732) (1,491) Pre-tax profit/(loss) (15,216) (7,530) Tax charge/credit - Retained profit/(loss) (15,216) (7,530)

Turnover is analysed as follows:

Year ended May 31, 10

£'000 Year ended May 31, 09

£'000 Match receipts 6,022 5,676 Other football income 6,009 5,131 Retailing and merchandise 1,377 1,602 Conference, banqueting & catering 880 935 Sponsorship, executive suites, advertising & other income 3,069 2,869 Total turnover 17,357 16,213

[Jace]

Appears many have forgotten how we were financially before the Thais took over. This is the first time since I have been a Leicester City fan the Club has been finanically stable yet fans are complaining? The only year I can recall us making a profit was the season we sold Heskey for £11 million and even then we only just scraped a profit.

[cc_star]

#lcfc accounts. Owe Asia Football Investments £28m to be paid within 1 yr. PLUS further £25.6m lent May 2011-Feb 2012 unknown repayment term

Stringer's Twitter

Can see that having to be extended though, hopefully anyway.

[MONreborn]

To be paid within 1 year WTF?????

[Happy Fox]

Stringer's Twitter

Can see that having to be extended though, hopefully anyway.

, it doesn't look good imo.

[Happy Fox]

To be paid within 1 year WTF?????

I suspect the owners are hoping we go up by next season at the very latest.

[cc_star]

Appears many have forgotten how we were financially before the Thais took over. This is the first time since I have been a Leicester City fan the Club has been finanically stable yet fans are complaining? The only year I can recall us making a profit was the season we sold Heskey for £11 million and even then we only just scraped a profit.

Paper losses aren'ty always real losses, how many of those years & years of losses would we have made a profit if money wasn't being taken out of the club by a complicated accounting set-up where owners over those years do benefit?

Also, how are we financially stable, we're a mere "change of the mind" away from administration

and with the contracts that Sven signed people on, we'd be even more toxic than Portsmouth to potential savours, madness has taken over our club, but at least with NP I think the future wouldn't be so kamikaze as it has been since he left.

[Captain...]

One thing that isn't taken into account is the re-naming of the stadium, now that should be a hefty sum of money from King Power to re-name the stadium, I wouldn't be surprised if that money wiped out any loan that we have with King Power, this is probably similar to what Man City have been doing with their Sponsorship deals as a way of pumping more money into the club that falls under the FFP. I really don't want to go down the route of Man United and the Glazers with large sums of money tied up in debts.

[dannythefox]

I'm glad Pearson's back at least he wont blow stupid amounts on stupid loan/perm players. But the money we've spent has been a joke I just hope the thai's know that money sometimes doesn't always work.

[Happy Fox]

Promotion or bust next season, how on earth are we going to pay £28m I don't think renaming the stadium is going to account for that amount of money. We only have one year to repay that amount so automatic promotion is a must,

[Jimmy]

the Stringer scaremongering starts again! they'll extend the repayments, after all they are paying themselves

[Corky]

We can't go throwing large amounts of money around like we did last summer.

Cutting the wage bill and selling players will help, but the need for promotion is heightened by these figures. Hopefully we can achieve it without breaking the bank again.

[vandamman]

King power are gonna have to sell a hell of a lot of giant toblerones and Dime bars to recover those losses.