New LCFC Accounts

[HEGGSY]

Already a thread mate

[THEFATBASTARD]

with all the financial experts on here we should have no problems..

[Happy Fox]

http://mercurybusine...kpot-dream.html

This is from the Merc's buisness editor

Leicester City owner's jackpot dream

As a young reporter I worked in a pub to supplement my income.

Among the images I remember, alongside sad drunks and lagered up teenagers, is the sight of normally rational people pumping dozens of pound coins into the fruit machine chasing an elusive £100 jackpot.

Not only did the sight of their demented determination put me off fruit machines for life, it taught me when to call it quits.

Now Thai businessman Vichai Raksriaksorn has certainly got a lot more cash to his name than a dozen or so pound coins, but he is still chasing a jackpot dream nonetheless.

The owner of Leicester City has pumped £53 million into the club since taking control in August 2010 in a bid to get it back into the big time.

That is a serious amount of money - a third of his total wealth by some estimates - and his commitment to getting City promoted to the Premier League cannot be doubted.

But another failed attempt to secure promotion is a strong possibility this season. So what if Mr R decided enough was enough and called it a day?

How quickly will he want his £53 million - which is structured as a loan from his company Asia Football Investments - back?

Who will come in to take over a club which could by that time have up to £80 million of debt -which, incidentally, is more debt than the club had when it went into administration in October 2002?

With Premier League football comes a jackpot of at least £90 million. But how much can one man keep putting in the slot before it pays out?

Sometimes, if I felt sorry for a fruit machine addict, I used to shout from behind the bar that someone else had put in a load of cash before them and had failed to win, so it was 'bound to pay out soon'.

But I'm sure Mr Raksriaksorn doesn't need my advice.

[FuriousFox46]

We're foxed.

[Tommy G]

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?

I dont think you can carry a loss from a UK Co against a company in a different tax state i.e Thailand. If that was the case, you would have all sorts of Foreign wideboys setting up companies in different countries (as an advertising co for example) purely on a loss making basis to then use the losses to offset again taxable profits in another country.

Plus the UK tax system doesnt benefit Companies hence they are all ****ing off abraod to regions with lower tax rates

[Callabinho]

This is very worrying indeed. The owners said promotion this season for more reasons than one. If we don't go up we will be in the shit big time! Wage bill has to be slashed! do we run the risk of keeping Beckford for another season if we stay down? I don't think we can afford too.

[Fez of Mahrez]

I'm with davieG and Daggers on this. As much as I fall under the spell of wanting us to win each game and enjoying good performances, the whole approach at the moment is completely stupid and shameful and deserves to fail.

[Happy Fox]

I'm with davieG and Daggers on this. As much as I fall under the spell of wanting us to win each game and enjoying good performances, the whole approach at the moment is completely stupid and shameful and deserves to fail.

It is a worrying concern, our club's future solely relies on promotion it needs to happen ideally this season if we don't get it next season at the very latest we are f**ked.

[ScouseFox]

Well we can't do anything about it.

Enjoy the ride, there's a chance it will bring us massive success in a few years. Or lie awake at night, sweating, worrying that we might have bad finances at the moment.

Up to you. Still won't change anything.

[butterslcfc]

Win the FA Cup and we'll be fine...

Wembley pay-day would go down nicely though, not £28m worth obviously. Still, Chelski/Brum to beat yet.

[Happy Fox]

Well we can't do anything about it.

Enjoy the ride, there's a chance it will bring us massive success in a few years. Or lie awake at night, sweating, worrying that we might have bad finances at the moment.

Up to you. Still won't change anything.

I am not really worried so much but it is absolutely imperative we get into the prem before FFP hits us hard unless we drastically cut down the wage bill, when we reach the prem only then will we see what the Thais are made of in terms of future i.e. do they want success imminently top half finishes European nights etc., or are they happy to let NP find his feet and not get cold shoulders when we aren't lighting up the division.

[Foxblogger]

Well we can't do anything about it.

I find this logic slightly bemusing. You know the score won't change depending on whether you go the game or not too, right?

[ScouseFox]

I find this logic slightly bemusing. You know the score won't change depending on whether you go the game or not too, right?

Yep. Bit different, really. I don't go to games just to find out the score. I go for enjoyment, atmosphere, etc etc.

Do the people worrying in this thread enjoy it?

[Fez of Mahrez]

Well we can't do anything about it.

Enjoy the ride, there's a chance it will bring us massive success in a few years. Or lie awake at night, sweating, worrying that we might have bad finances at the moment.

Up to you. Still won't change anything.

Yep, there's nothing I can do about it. Until I find myself shaking a bucket for money to try to help save the club. Again.

[NeilyBoy]

Will promotion make that much difference?

In the QPR programme it makes £40m difference for them (£42m opposed to £2m). I don't know what our current income is but it's surely much closer to the £2m than the £42m, so it seems to make a bigger difference than I thought.

[Cropwellfox]

Would imagine the staff costs to turnover will be over 100% for this current season. Completely unsustainable as a business model after the first 18 mad months - may well be a summer of balancing books which wouldn't be a bad thing given how much money in wages currently isn't even in the matchday squad.

[Happy Fox]

It certainly puts the club under unnecessary pressure to get promotion otherwise it is bust unless we cut down in wages and spending. We need to go up by next season at the very latest I dread to think what will happen if we are still in this division. £53.6 million we have to pay back in total is a lot of money, and this is only guaranteed by promotion. They want the 28 million pounds to be paid by next year how can we afford to pay back that loan without promotion?. We need to go up this year and that is far from guaranteed.

[NeilyBoy]

On the bright side, a lot of the debt is to the Rasriaksorns' company so I'm thinking that makes the situation look more dire than it is, as long as they hold out with the club, which I have faith that they will.

[Happy Fox]

On the bright side, a lot of the debt is to the Rasriaksorns' company so I'm thinking that makes the situation look more dire than it is, as long as they hold out with the club, which I have faith that they will.

The loan is payable to AFI investments which isn't King Power and certainly begs the questions that we have an owner who is unidentified. Top and Vichai to me are no way the people that own are football club.

[woddyuk]

Look chaps and chapesses. Context, Chelsea have blown 50 million quid on torres, and another 40 million on a manager for 9 mths. Manchester united accounts show them in debt by circs 650million quid and I dont expect them to go bust anytime soon....the Thais have good retail and marketing know how.something pompey dont have. One way or another they will make city self sufficient and successful. Failure is not an option.

[Daggers]

Yep. Bit different, really. I don't go to games just to find out the score. I go for enjoyment, atmosphere, etc etc.

Do the people worrying in this thread enjoy it?

No I don't enjoy it because there is something we can do.

I strongly disagree with the way the club is being run, I find the money being thrown away absolutely shameful. I am disgusted by the level of contracts being given to average players. I was sickened with the manner by which Pearson was got rid of.

I believe the soul if the club was ripped out by Mandaric and pissed on by the Thais. I believe we have a right to know who is funding the club, where the money is coming from, how much there is and what lien will be placed on the club when they leave.

And they will leave.

And I believe that when you feel strongly about something you don't close your eyes and hope for the best, that you don't ignore the situation, that you do something.

I returned my season ticket and have not attended a match since the third home match after Pearson's replacement exercise. I write to the club but I realise I'm pissing in the wind at the moment.

My conscience is clear that I am not encouraging my club to rush to its financial doom - and I feel that a lot more of you should consider doing the same, but I know you won't.

There'll be much wailing and gnashing when the shit hits the fan, and it will, so how will you feel then?

The fruit machine analogy was excellent. Don't encourage them to gamble, demand the truth.

[thewarmanator]

Look chaps and chapesses. Context, Chelsea have blown 50 million quid on torres, and another 40 million on a manager for 9 mths. Manchester united accounts show them in debt by circs 650million quid and I dont expect them to go bust anytime soon....the Thais have good retail and marketing know how.something pompey dont have. One way or another they will make city self sufficient and successful. Failure is not an option.

Yeah let's compare Leicester to Manchester United. The only differences being that their income will pay off the debt in a few years where as ours will keep growing inless we reach the premier league.

[Happy Fox]

No I don't enjoy it because there is something we can do.

I strongly disagree with the way the club is being run, I find the money being thrown away absolutely shameful. I am disgusted by the level of contracts being given to average players. I was sickened with the manner by which Pearson was got rid of.

I believe the soul if the club was ripped out by Mandaric and pissed on by the Thais. I believe we have a right to know who is funding the club, where the money is coming from, how much there is and what lien will be placed on the club when they leave.

And they will leave.

And I believe that when you feel strongly about something you don't close your eyes and hope for the best, that you don't ignore the situation, that you do something.

I returned my season ticket and have not attended a match since the third home match after Pearson's replacement exercise. I write to the club but I realise I'm pissing in the wind at the moment.

My conscience is clear that I am not encouraging my club to rush to its financial doom - and I feel that a lot more of you should consider doing the same, but I know you won't.

There'll be much wailing and gnashing when the shit hits the fan, and it will, so how will you feel then?

The fruit machine analogy was excellent. Don't encourage them to gamble, demand the truth.

It is all about fans perceptions in most fans eyes the Thais can do no wrong they are our "saviors" with the investment, and nobody knows for sure if they are devious like Mandy and have a hidden agenda. But these financial figures are concerning so unfortunately as time goes on we may know more about who is funding the club because in my eyes I don't think it is Vichai and Top perhaps ,Thaskin?

[Callabinho]

Look chaps and chapesses. Context, Chelsea have blown 50 million quid on torres, and another 40 million on a manager for 9 mths. Manchester united accounts show them in debt by circs 650million quid and I dont expect them to go bust anytime soon....the Thais have good retail and marketing know how.something pompey dont have. One way or another they will make city self sufficient and successful. Failure is not an option.

Correct, sometimes you have to throw a bigger bait to catch the prize, but in the end it's worth it if you win. The situation will only get worse if we continue to fail, which hopefully we won't a friend of mine has seen the King Power empire. And these boys have lots more cash than wikipedia states.

[seenitall]

No I don't enjoy it because there is something we can do.

I strongly disagree with the way the club is being run, I find the money being thrown away absolutely shameful. I am disgusted by the level of contracts being given to average players. I was sickened with the manner by which Pearson was got rid of.

I believe the soul if the club was ripped out by Mandaric and pissed on by the Thais. I believe we have a right to know who is funding the club, where the money is coming from, how much there is and what lien will be placed on the club when they leave.

And they will leave.

And I believe that when you feel strongly about something you don't close your eyes and hope for the best, that you don't ignore the situation, that you do something.

I returned my season ticket and have not attended a match since the third home match after Pearson's replacement exercise. I write to the club but I realise I'm pissing in the wind at the moment.

My conscience is clear that I am not encouraging my club to rush to its financial doom - and I feel that a lot more of you should consider doing the same, but I know you won't.

There'll be much wailing and gnashing when the shit hits the fan, and it will, so how will you feel then?

The fruit machine analogy was excellent. Don't encourage them to gamble, demand the truth.

Not been on here for a few weeks but at last another person who isn't jumping for joy because the new owners have spent the equivalent of Wayne Rooney's annual salary on our team!!

The financial implications are scary enough but the crass footballing decisions being made also have an impact - I also sense there is a judgement day coming - most on here worship them blindly though, so prepare to be shot at for dissenting in any way.