New LCFC Accounts

[Haydos]

Partly, they /built/designed the stadium, seats, etc, (which covers the fees for using these, which this firm is continuously waiting for the fee cost to of using their stadium).

However, the local council own the site where the stadium is based upon. (So, the fees of using that location are will therefore are (or will eventually be paid anyway) paid to them, until we possibly in the future buy the ground site.)

Are you coming to post in gen chat again? <3

[The Year Of The Fox]

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

Very scary.

I have a feeling this will end in tears

[Electricity Sports 1960]

The owner has 'loaned' the club £53 million, with an interest rate of 8%. He will need to loan us a great deal more to finance the current year. In the Premiership we'll need Premiership class players, who cost a lot. Where will the money come from to pay him back? In a year's time we'll owe more than we did when we went into administration.

[Mack]

The owner has 'loaned' the club £53 million, with an interest rate of 8%. He will need to loan us a great deal more to finance the current year. In the Premiership we'll need Premiership class players, who cost a lot. Where will the money come from to pay him back? In a year's time we'll owe more than we did when we went into administration.

IF we get up the revenue streams will increase significantly.

£40 million quid before we've even kicked a ball.

[Lobsterboyuk]

Is there an additional tax benefit to the Thai investors in their home country because they have made a "loss-making" investment - so can write the amount off against their local tax liability? Any tax experts on this forum?

[Electricity Sports 1960]

IF we get up the revenue streams will increase significantly.

£40 million quid before we've even kicked a ball.

If we get up is crucial. Also don't forget that the results published this week are for a year ago. What will the currect year's be? Worse? They will certainly add to the loans / debt.

[Mack]

If we get up is crucial. Also don't forget that the results published this week are for a year ago. What will the currect year's be? Worse? They will certainly add to the loans / debt.

It's probably doubled at least mate, it just shows how important it is that we get up if not this term then next.

I dont want to think about what might happen if we cant get promoted by the end of next season.

[yorkie1999]

They'll be even worse off when i take my shirt back because the transfer has fell off!

[Libertine Dream]

Asia Football Investments is mentioned again yet so far as I'm aware no one knows who constitute the consortium, what its legal status is and in what tax haven or otherwise it lodges its accounts. Is it the Virgin Islands, Bahamas, Delaware USA (where Mandaric based some element of his interest in LCFC)? What individuals having beneficial interests in AFI decide who call in any of the debts?

Perennial questions that never get answered.

Idle questions since despite the many posts from accountants etc no one apart from the private inner sanctum of the club has the faintest idea what's going on.

I'm guessing AFI was set up in Singapore as its got pte ltd at the end. You could look at their details on ACRA (singapore companies house) but Id imagine it would cost 3.45 to find out that AFI is owned by K Power sports investment so unless it gives substantial details on that company its pointless as we already know that.

[Captain...]

To all those panic merchants, where did you think the money was coming from? Do you think that Top and co were dipping into their bank accounts and just donating money to the club? That is not how it works (except for the Abrahmoviches of this world) and will soon be illegal under FFP.

They paid an initial amount to the buy the club, the rest needs to come from revenue streams, such as sponsorship, ticket sales, TV rights, merchandising etc.

Anything else needs to come from loans, it is better for loans to be controlled by the owners of LCFC than banks or other financial organisations.

Now people stop scaremongering, nobody was worried when Sven was pissing all this money up the wall, we had a premiership back 4, it is clear from Jan's transfer activity that we are not going to be spunking money in the same way, the first 12 months under the thai owners was a costly experiment in putting all of their eggs in one basket. We all knew that at the time, and now we are seeing the cost of it. Relax and enjoy your Saturday.

[The People's Hero]

Is there an additional tax benefit to the Thai investors in their home country because they have made a "loss-making" investment - so can write the amount off against their local tax liability? Any tax experts on this forum?

Probably. Ultimately it depends how its been accounted for and where 'exactly' the money has come from.

Pay decent accountants enough money and most of these things seem to be achievable.

[davieG]

To all those panic merchants, where did you think the money was coming from? Do you think that Top and co were dipping into their bank accounts and just donating money to the club? That is not how it works (except for the Abrahmoviches of this world) and will soon be illegal under FFP.

They paid an initial amount to the buy the club, the rest needs to come from revenue streams, such as sponsorship, ticket sales, TV rights, merchandising etc.

Anything else needs to come from loans, it is better for loans to be controlled by the owners of LCFC than banks or other financial organisations.

Now people stop scaremongering, nobody was worried when Sven was pissing all this money up the wall, we had a premiership back 4, it is clear from Jan's transfer activity that we are not going to be spunking money in the same way, the first 12 months under the thai owners was a costly experiment in putting all of their eggs in one basket. We all knew that at the time, and now we are seeing the cost of it. Relax and enjoy your Saturday.

I'm not panicking I've never been happy with either Mandaric or the Thai's ownership especially when money has been literally thrown at the club to try to achieve success even more so with the Thai's than Mandaric.

I don't like this approach in principle, I don't like the uncertainty of it, I don't like how it puts the club at risk. I don't like how it makes many of the fans greedy and arrogant and I'd be quite happy for the club to grow and develop organically and find it's own natural level.

I don't even see how getting into the PL solves any problems sure the income increases but so do the costs of trying to survive in there and that what it will all be about, survival will equal some sort of perverse success.

But I'm just one fan, there's little that we can do whilst those running football at the highest levels are as greedy and self serving as many of those running the clubs. All I can do is choose to go or not and as football is like a drug it's not easy to stop using even though I might think it would benefit the club and football in the longer term if a lot of us could. Perhaps I'm just week or too old to put the effort in.

PS have you seen our fans in the Portsmouth and loan drooling like vultures over the potential fall out of Portsmouth, that's what this type of ownership does to some fans.

[Daggers]

I'm not panicking I've never been happy with either Mandaric or the Thai's ownership especially when money has been literally thrown at the club to try to achieve success even more so with the Thai's than Mandaric.

I don't like this approach in principle, I don't like the uncertainty of it, I don't like how it puts the club at risk. I don't like how it makes many of the fans greedy and arrogant and I'd be quite happy for the club to grow and develop organically and find it's own natural level.

I don't even see how getting into the PL solves any problems sure the income increases but so do the costs of trying to survive in there and that what it will all be about, survival will equal some sort of perverse success.

But I'm just one fan, there's little that we can do whilst those running football at the highest levels are as greedy and self serving as many of those running the clubs. All I can do is choose to go or not and as football is like a drug it's not easy to stop using even though I might think it would benefit the club and football in the longer term if a lot of us could. Perhaps I'm just week or too old to put the effort in.

PS have you seen our fans in the Portsmouth and loan drooling like vultures over the potential fall out of Portsmouth, that's what this type of ownership does to some fans.

Absolutely, all of it.

[davieG]

Absolutely, all of it.

Well maybe not the typos

[Jace]

To all those panic merchants, where did you think the money was coming from? Do you think that Top and co were dipping into their bank accounts and just donating money to the club? That is not how it works (except for the Abrahmoviches of this world) and will soon be illegal under FFP.

They paid an initial amount to the buy the club, the rest needs to come from revenue streams, such as sponsorship, ticket sales, TV rights, merchandising etc.

Anything else needs to come from loans, it is better for loans to be controlled by the owners of LCFC than banks or other financial organisations.

Now people stop scaremongering, nobody was worried when Sven was pissing all this money up the wall, we had a premiership back 4, it is clear from Jan's transfer activity that we are not going to be spunking money in the same way, the first 12 months under the thai owners was a costly experiment in putting all of their eggs in one basket. We all knew that at the time, and now we are seeing the cost of it. Relax and enjoy your Saturday.

Good post not quite sure what the crying is about from some people what were they expecting from the accounts? We were never going to break even from Thai fans buying Richie Wellens Leicester Shirts and Filbert Fox masks.

[Happy Fox]

The guardian have picked on this up

http://www.guardian.co.uk/football/2012/mar/03/said-and-done-leicester-fifa?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+theguardian%2Ffootball%2Frss+%28Football%29

How football works

2002: Leicester clear a £50m debt by going into administration, avoiding £6m in tax and £4,415 owed to St John Ambulance.

2012: Leicester declare a debt of £46m for 2011, built on a record £15.2m loss, up from 2010's £7.5m loss; a staff costs to turnover ratio of 95.5%; and £28m owed to parent company Asia Football Investments – on whom the club "relies and continues to rely" to remain a "going concern".

(£25.6m: Additional loan provided by AFI in the new financial year.)

[NeilyBoy]

The guardian have picked on this up

http://www.guardian....+%28Football%29

How football works

2002: Leicester clear a £50m debt by going into administration, avoiding £6m in tax and £4,415 owed to St John Ambulance.

2012: Leicester declare a debt of £46m for 2011, built on a record £15.2m loss, up from 2010's £7.5m loss; a staff costs to turnover ratio of 95.5%; and £28m owed to parent company Asia Football Investments – on whom the club "relies and continues to rely" to remain a "going concern".

(£25.6m: Additional loan provided by AFI in the new financial year.)

Those are worrying figures. If we only have 4.5% turnover left after paying players et al, how do we have enough money to continue running as a club let alone pay off our debts? I'm not saying administration beckons but... actually yes I am. And I hope I'm wrong.

[Happy Fox]

Those are worrying figures. If we only have 4.5% turnover left after paying players et al, how do we have enough money to continue running as a club let alone pay off our debts? I'm not saying administration beckons but... actually yes I am. And I hope I'm wrong.

95.5% turnover is a staggering figure and is a big concern to me it highlights very much the fact that wages need to be brought down or the club to get promotion this season or at the very least by next season.

[davieG]

95.5% turnover is a staggering figure and is a big concern to me it highlights very much the fact that wages need to be brought down or the club to get promotion this season or at the very least by next season.

Will promotion make that much difference?

[NeilyBoy]

Will promotion make that much difference?

It will help presuming we stay fiscally responsible. But we clearly haven't been so far...

[Happy Fox]

Will promotion make that much difference?

I think so, I can imagine the Far East potential will be utilized to its full amount, sponsorship from Air Asia, Singha Beer will be more in money, of course the SKY tv revenue for prem clubs is much more than in the championship, the stadium will be fullish capacity every home game.

[davieG]

I think so, I can imagine the Far East potential will be utilized to its full amount, sponsorship from Air Asia, Singha Beer will be more in money, of course the SKY tv revenue for prem clubs is much more than in the championship, the stadium will be fullish capacity every home game.

What about the outgoings, the new players we'll inevitably need to feed all those sponsors and the Far East potential with?

[Happy Fox]

What about the outgoings, the new players we'll inevitably need to feed all those sponsors and the Far East potential with?

I am not sure on that but the marquee signing's the Thais owners would like to make will happen I presume because of prem football and whether NP can deliver in bringing those players in that I am not so sure but it is a striking resemblance to QPR were they sacked Warnock and bought Hughes in, and splashed the cash on big players Cisse, Zamora etc.

[NeilyBoy]

What about the outgoings, the new players we'll inevitably need to feed all those sponsors and the Far East potential with?

That's where fiscal responsibility comes in. We'd be getting a lot of extra cash but, as you hint, we'd need to keep any extra expense within the level of extra income to be benefiting from that fact. Please don't let us be Portsmouth mark II.

[jock2612]

Did anyone see today's Observer?

2002 - £50 million in debt - go into administration to avoid £6 million in tax.

2012 - 'Leicester declare a debt of £46 million for 2011, built on a £15.2 million loss up from 2010's £7.5 million; staff cost to turnover ratio of 95.5% and £28 million owed to parent company (Asia Football Investments)- on whom the club "relies and continues to rely to remain a going concern." The accounts also stated that there is a further £25.6 million of additional borrowing from AFI in the new financial year.'

There is no way that the club can meet the new fair play rules or in the long term sustain this level of debt which by the end of this year with no further borrowing would be over £75 million. If the club fail to make the Premiership next year I fear we may be in the same position as Portsmouth,

Thoughts?