New LCFC Accounts

[Happy Fox]

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

You would be naive to think that, it is the MOF regime at work again ( not trying to scaremonger)

[Guest ttfn]

Stringer is scaremongering.

Exact wording is:

"The parent company has confirmed that they will not seek repayment of these loans within 12 months of the date of signing the accounts if such payment would prejudice the ability of the company to settle it's other obligations when they fall due".

[Ric Flair]

Hahahahaaaaa as if we'll pay £28 million in a year, unless of course we get promoted but that is what the Thai's want so they can stroke their ego's with a team that's hob-nobbing with them best in the world. If we get promoted, they'll then throw god knows how much dough at it again to try and get us challenging for medals as that's what they crave.

We are fairly fooked if we don't get promoted soon though as blowing this sort of dough for more than a year or so at this level is unheard of and cannot be sustained without serious consequences.

Pearson can put together a team on a budget and I hope we don't spend much cash in the summer, i'd operate on internally raising funds for transfers, i.e. buy to sell instead of under Sven where we sold for low and paid for high.

[THEFATBASTARD]

so many high finance "experts" on here....pontificating without any "real" facts...does anybody really think that kingpower want any bad PR on their CV? The company is backed by a nation ..not a wideboy..think about it...

[Daggers]

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.

Which makes you, what?

Tim Nicebutdim?

Frank Spencer?

Timmy Mallet?

Argue a point if you fancy - but if all you can do is manage half-baked put-downs I'd get back to your wanking practice in a public toilet.

[Captain...]

Hahahahaaaaa as if we'll pay £28 million in a year, unless of course we get promoted but that is what the Thai's want so they can stroke their ego's with a team that's hob-nobbing with them best in the world. If we get promoted, they'll then throw god knows how much dough at it again to try and get us challenging for medals as that's what they crave.

We are fairly fooked if we don't get promoted soon though as blowing this sort of dough for more than a year or so at this level is unheard of and cannot be sustained without serious consequences.

Pearson can put together a team on a budget and I hope we don't spend much cash in the summer, i'd operate on internally raising funds for transfers, i.e. buy to sell instead of under Sven where we sold for low and paid for high.

I don't agree with the bit about ego's that is Abramohvich and the guy at Man City, I think that their motivation is 90% business and 10% fandom, us getting into the prem would give them a huge amount of exposure on an international scale, compared to the advertising budget of some companies 28 million is peanuts in that respect. Obviously the most extreme case but Coca -Cola's global advertising budget exceeded $1.6 billion in the late 1990s.

As for Sven's selling and buying policy, apart from Mills and maybe Beckford the transfer fees he paid out were not too excessive, but his selling policy was horrendous, Fryatt, Hobbs, Morrison all let go for less than half their value, and the amount wasted on high profile loanees was just obscene, all that outlay with nothing to show for it in return. Whether it was all Sven's fault I don't know but we will not see that kind of expenditure under Pearson and I am thankful for that.

.

[steveherbe]

Which makes you, what?

Tim Nicebutdim?

Frank Spencer?

Timmy Mallet?

Argue a point if you fancy - but if all you can do is manage half-baked put-downs I'd get back to your wanking practice in a public toilet.

Aha, the last bastion of the keyboard warrior - the bad language insult. Have a nice life. Shall I see you at the KP tomorrow, we could always meet up to continue face to face, but somehow I dont think you'd chance it.

[Tommy G]

I hate Stringer at times like this. He will make small minded people actually believe him. He has completely twisted it, just so he gets more mentions on twitter.

He's done this before, he will come out of it looking like a plank again.

This is the last thing we need with people worrying about something that doesn't need to be worried about. What a complete TOOL

If he was supposed to be a 'fan' he wouldnt do this to his own club just to steal the limelight

[nickelbyfox]

Lord, people do jump to doom and gloom scenario's. Why would Asia Football Investments give us substantial loans regardless of the interest rates to walk a way in a year, it would still be the majority of their money to be repaid! How would they get break even on their investment, the stadium? Do not think so....

It is scary to think the money they are putting in, and if they cut their losses eventually and leave we will go into admin and disappear most obviously as who would buy an investment with so much debt? But who would invest 28 million + to leave?

We see with their investments they are looking to the long term, have established a company - Asia

Football Investments or whatever it is called and will obviously need to give time frames/rates should there be any further external investment into their company, in terms of what they get back/ in comparison to future/potential shareholders.

Overall is somewhat scary but seems to reiterate their idea of investing long term into the club with the amount of money they are loaning! Pretty standard and structured in my opinion, and nice to see it in the open. Especially the fact they are spending the money across not only the squad but stadium, training ground etc.!

[martin7]

Just heard on radio leicester leicester owe the owners 28 million which has to be payed back over the next 12 months. They had also invested 25.6 million of there own money into the club. hopefully get it all sorted but i feel they have been great owners to leicester

[yorkie1999]

Aha, the last bastion of the keyboard warrior - the bad language insult. Have a nice life. Shall I see you at the KP tomorrow, we could always meet up to continue face to face, but somehow I dont think you'd chance it.

Shouldn't really be resorting to petty insults either with all those letters after his name...

[yorkie1999]

Good job its not owed to a bank then!

[Happy Fox]

Foxblogger ‏ @foxblogger

• Close
  

One final note on the accounts. The interest rate on £27.5m of the £28m owed to Asia Football Investments is 8%. #lcfc

[steveherbe]

Shouldn't really be resorting to petty insults either with all those letters after his name...

I noticed that, thought someone had rearranged his fridge magnets!! Although I think I've worked out what they stand for: B.S., M.S., M.A., Ph.D., Sc.D. BS is easy (BullShi**er), , MS must be Mardy Sod, MA is Mardy Arse, PhD must be Physically Disabled, and ScD is surely Socially Defunct. LIGHTEN UP, WE'RE ONLY HAVING A LAUGH!!

[cc_star]

Just heard on radio leicester leicester owe the owners 28 million which has to be payed back over the next 12 months. They had also invested 25.6 million of there own money into the club. hopefully get it all sorted but i feel they have been great owners to leicester

Not sure as to great owners, it certainly a huge change of direction to anything we're used to... something we've longed for since the Martin "where's the money gone" George days

They've been willing to invest, but it's also not that much of risk for them as they will get the money back, from the club even if they see the club into administration, they'll be preferential in the order money is paid back

I think they've also been foolish, really really foolish in throwing all this money at a manager who didn't provide them with good value for that money. and himself was on a £3m contract. and they've thrown good money after bad

With the appointment of Pearson, perhaps they have learned

but remember they are only loaning the money to the club & it's just been tweeted by Foxblogger that the interest rate is 8%, which leaves them to profit quite handsomely, both if we go up & they get many, many millions, or if the club just pays them back at the loan rate of a longer & longer time as it will obviously have to be deferred on an ongoing basis

[burni]

thats alot of money that svennis managed to rack up!

[martin7]

Not sure as to great owners, it certainly a huge change of direction to anything we're used to... something we've longed for since the Martin "where's the money gone" George days

They've been willing to invest, but it's also not that much of risk for them as they will get the money back, from the club even if they see the club into administration, they'll be preferential in the order money is paid back

I think they've also been foolish, really really foolish in throwing all this money at a manager who didn't provide them with good value for that money. and himself was on a £3m contract. and they've thrown good money after bad

With the appointment of Pearson, perhaps they have learned

but remember they are only loaning the money to the club & it's just been tweeted by Foxblogger that the interest rate is 8%, which leaves them to profit quite handsomely, both if we go up & they get many, many millions, or if the club just pays them back at the loan rate of a longer & longer time as it will obviously have to be deferred on an ongoing basis

yeah your right there are not businessman for no reason at all but lets hope they can get the success they deserve with leicester. premier league hopefully

[Daggers]

Foxblogger ‏ @foxblogger

• Close
  

One final note on the accounts. The interest rate on £27.5m of the £28m owed to Asia Football Investments is 8%. #lcfc

Which is two and a quarterish million pounds a year just on interest...a rate far higher than anything obtainable as a bank loan.

Yes, of course they have the best interest of the club at heart.

[cc_star]

Good job its not owed to a bank then!

We could have got a better rate on the financial markets than what AFI is charging LCFC

Deferring the debt is all well & good, but all that means is the debt will go up because the interest will be compounded

Not to mention we still require the debt adding-to as we're still not promotion candidates barring a record breaking run.

It really is Premier League (at some point) or bust, or servicing this debt will just get harder & harder

[Petchy]

I don't really understand this if I'm honest. API / KP decided to invest in us, yet now the club owes them money? What?! I didn't think there would be a deadline to pay the investment back.

[Basingstoke Fox]

Does anyone know what the situation with our stadium is?

[Daggers]

They aren't doing this because they love the club.

Good morning people, have a wiff...

[Guest ttfn]

Which is two and a quarterish million pounds a year just on interest...a rate far higher than anything obtainable as a bank loan.

Yes, of course they have the best interest of the club at heart.

Agreed; it is profiteering.

Not really comparable to a bank loan though. I'm not convinced even they'd be stupid enough to lend to a business with a gross margin of -50%...

[Daggers]

Not really comparable to a bank loan though. I'm not convinced even they'd be stupid enough to lend to a business with a gross margin of -50%...

Yep, there is that.

[Lobsterboyuk]

I'm not an accountant but -

The loan stuff is just a tax wheeze - if they give Leicester 28 million then Leicester pay tax on that - if they lend 28 million no tax is payable to HMRC - but Leicester MUST pay a commercial rate of interest

This is how I paid myself when I was a company director