Leicester City's owners did not invest £53m for FA Cup days at Chelsea

[Happy Fox]

A piece in the Guardian an interesting read, however I disagree with the journalist's notion that an FA Cup success isn't a bad thing surely the owners want success on the pitch and this is merited by doing well in the cup competitions.

http://www.guardian....a?newsfeed=true

Vichai Raksriaksorn wants a place in the Premier League and shares Roman Abramovich's dislike of failure

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  • Jamie Jackson
    
  • guardian.co.uk, Friday 16 March 2012 22.30 GMT
    
  • Article history
    

Leicester City's manager, Nigel Pearson, knows success in the Championship, not the Cup against Chelsea, is the owner's priority. Photograph: Ross Kinnaird/Getty Images

Leicester City will hope for FA Cup glory against Chelsea on Sunday just as the real tale emerges of the extraordinary investment by their Thai owner, Vichai Raksriaksorn. He has spent £53m in a quest to achieve Premier League football, which again appears distant this season.

Like a lower-league Roman Abramovich, Raksriaksorn has showered money on his project since buying the club in the summer of 2010. Sven-Goran Eriksson was hired in October of that year, then fired 12 months later for failing to achieve promotion, while £11m has been spent on the salaries of a band of players that includes Darius Vassell, Jermaine Beckfordand Kasper Schmeichel, not all of whom have impressed.

The Foxes are 11th in the Championship, 16 points from the automatic promotion places. Nigel Pearson, who succeeded Eriksson as manager, speaks of attaining a place in the play-offs – currently two wins away – in guarded tones. "Its still mathematically a possibility," he says. "We're not a million miles away but of course our inconsistencies this season have made it very difficult for us to make any inroads into the league. There'll be twists and turns between now and the end of the season, there's no doubt about that."

The latest £26m of the £53m injected by Raksriaksorn, who owns Leicester through the holding company Asian Football Investments, is a loan at 8% and not interest-free as, say, Abramovich has done with Chelsea. Asked about this dependence, Pearson says: "We are fortunate that we have very wealthy benefactors who have invested an awful lot of money not only in the squad but in the infrastructure of the club. I think that's important to recognise.

"But certainly [as] financial fair play is looming, its something I'm sure the club will address. But in terms of the stability of our club we're fortunate to have owners who have made a long-term commitment.

"There are an awful lot of football clubs in the country whose finances are not probably what they would like. But I think we have the stability here in terms of the business infrastructure to be able to deal with those sorts of figures. And it's not just a case of writing them off, it's managing it and I think the club will have a very sensible business plan moving forward."

Clubs who rely on benefactors can be precarious. The model relies on an Abramovich or a Raksriaksorn not walking away and demanding their equity back instantly. And Chelsea's Russian and Leicester's Thai have proved heavy investment's price is impatience. The latest accounts, published at the start of the month, state of Eriksson: "The club fell frustratingly short of the play-offs and an inconsistent start to the season has led to Sven leaving the club," when the Foxes were only two points from a play-off place, four better off than now.

For Raksriaksorn, £53m should have bought instant promotion and after Eriksson left by "mutual consent" Pearson may not be too confident of what the summer could bring.

He is calm, though, about how failure to achieve promotion this season may affect the club's approach. Pearson says: "Well financial fair play is not implemented this year but I think with any club there's got to be different strategies moving forward. So it's important to plan for the future with an eye on different scenarios and that's something that the club has done."

Regarding Leicester's financial ethos following a record £15.2m loss last season, the chief executive, Susan Whelan, says: "The club's strategy of investing in a strong squad to fight for a promotion place has led to increases in staff costs. 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."

Rangers, Portsmouth, and Port Vale all offer the latest lesson in what financial infirmity can do to proud clubs. So far £53m has achieved only Sunday's FA Cup quarter-final with Chelsea – which Leicester are favourites to lose – and not much else apart from a loan they will have to repay one day.

As Schmeichel, who was at Notts County when the club was threatened with being wound up, says: "It's not just about the money, consistency is what we need here. The gaffer's got his ideas and I think with a full pre-season he's going to get what he wants out of us. It's still a work in progress for him.

"I'm not going to get too involved in that type of conversation [on finances]. I'm not really qualified to, but obviously you've seen a lot of things going on with debt in football at the moment, with Rangers and Portsmouth, so things like that are a worry. I don't know the ins and outs of everything but I'm confident that the club know what they're doing."

[Salieri]

Bit of a non-story really.

[Happy Fox]

Our club is under the spotlight is it really that of a non story?, yes it talks about the financial situation and we all know the owners ultimately want promotion I thought it was generally a good read.

[onecapwonder]

As a Guardian reader its nice to see Jamie Jackson actually making some sense. The vast majority of his articles, especially his "5 things we learned" are complete rubbish. No one invests £50mil + in a Championship club to win the FA cup, they do it to get into the PL thats pretty obvious. Still at least he has worked out who actually plays for us and who doesn't the last Guardian teamsheet (http://www.guardian....-leicester-city) I saw for the match vs Chelsea had Abe and Fernades as potential subs....

[Edit]

Also he is right to highlight the financial issues at Leicester. I've no idea how wealthy the Raksriaksorns are but £50mil expendiutre on the club already with little chance of redress (i.e PL football next year) is a massive outlay for anyone outside of Mr. Putin's close friends. LCFC isn't a profit making busniess, unlike Arsenal or MUFC, yet we've have had a huge investement in the club (how many PL chairmen have put in £50+ mil to their clubs in one year?). I really worry about the future if our current backers get bored, there is no incentive to keep the club beyond potential revenue (i.e 30K fans a match in the PL) and if we don't get up this year then we have both financial fair play in the Football League and larger parachute payments of relegated teams to deal with. If the Thai's leave how will we pay back the £25mil loan we've taken out? I can't see us being in any better position to get promoted next season as we were at the start of this season, what happens if the Thais recall all the loans and give up?

[Dan]

He knows his stuff but ultimately, I learned nothing.

[FuriousFox46]

We spent money. We didn't go up. We're in debt.

Nothing new there.

[Happy Fox]

He knows his stuff but ultimately, I learned nothing.

1)The latest £26m of the £53m injected by Raksriaksorn, who owns Leicester through the holding company Asian Football Investments, is a loan at 8% and not interest-free

2) NP says "But I think we have the stability here in terms of the business infrastructure to be able to deal with those sorts of figures. And it's not just a case of writing them off, it's managing it and I think the club will have a very sensible business plan moving forward."

3)Pearson says: "Well financial fair play is not implemented this year but I think with any club there's got to be different strategies moving forward. So it's important to plan for the future with an eye on different scenarios and that's something that the club has done."

[class 1]

8% , thats about wonga.coms rate

[Jace]

1)The latest £26m of the £53m injected by Raksriaksorn, who owns Leicester through the holding company Asian Football Investments, is a loan at 8% and not interest-free

2) NP says "But I think we have the stability here in terms of the business infrastructure to be able to deal with those sorts of figures. And it's not just a case of writing them off, it's managing it and I think the club will have a very sensible business plan moving forward."

3)Pearson says: "Well financial fair play is not implemented this year but I think with any club there's got to be different strategies moving forward. So it's important to plan for the future with an eye on different scenarios and that's something that the club has done."

The Raksriaksorns own the Club and the parent company Asia Football Investments its their own debt just a legitimate way of moving capital if the club was making money and paying corporation tax I would be very concerned!

[Tielemans63]

8% , thats about wonga.coms rate

That's per day on Wonga.com - how those parasites are allowed to operate I have no idea.

Back on thread - I'm sure the owners were thinking promotion but if we're not going to get that then surely a cup run, with the exposure and TV money that comes with it, must be a consolation of sorts for Top & his pops?

[unreachable]

Disappointing article which contains two errors:

1. The consortiun is called "Asia Football Investments" not "Asian Football Investments".

2. The Guardian does not know whether the Raksriaksorns are the only individuals financing LCFC via the King Power Group or what other individuals form part of the consortium funding the club.

[class 1]

i think tbh when they came in to lcfc they were a bit naive about football , throwing cash at the old charmer , i cant see 3-4m signings this summer & i dont think we need em , but a lot of the money spent has gone on stadium improvement , belvior drive & the academy , oh & matt mills wages

[Dan]

1)The latest £26m of the £53m injected by Raksriaksorn, who owns Leicester through the holding company Asian Football Investments, is a loan at 8% and not interest-free

2) NP says "But I think we have the stability here in terms of the business infrastructure to be able to deal with those sorts of figures. And it's not just a case of writing them off, it's managing it and I think the club will have a very sensible business plan moving forward."

3)Pearson says: "Well financial fair play is not implemented this year but I think with any club there's got to be different strategies moving forward. So it's important to plan for the future with an eye on different scenarios and that's something that the club has done."

I still learned nothing new.

[Happy Fox]

I still learned nothing new.

Basically the club are making plans for FFP, and this has been implemented or will be implemented with cost cutting exercises big earners i.e Mills to be shown the door, if we fail to make the prem.

[21st Century Fox]

[Out Foxed]

more shite.

[NeilyBoy]

Also - and I don't mean to sound churlish or naive here but I might do - £53m isn't that much in the grand scheme of things; especially if he wants to draw the Chelsea comparison,

[21st Century Fox]

Also - and I don't mean to sound churlish or naive here but I might do - £53m isn't that much in the grand scheme of things; especially if he wants to draw the Chelsea comparison,

Yeah that equated to one Fernando Torres and an extra ear or something.

[onecapwonder]

Disappointing article which contains two errors:

1. The consortiun is called "Asia Football Investments" not "Asian Football Investments".

2. The Guardian does not know whether the Raksriaksorns are the only individuals financing LCFC via the King Power Group or what other individuals form part of the consortium funding the club.

1. I doubt they care too much

.

2. This is a puff piece on an interesting fact about the team Chelsea are playing on Sunday. If you consider the the Guardian has the 6 Nations, Gold Cup and FA Cup matches between PL teams to cover their interest in LCFC is likely to be limited at best. Having a go at an article that should really bring home some truthes to LCFC fans is rather bit chrulish. We will probably lose on Sunday and we aren't going to get into the play-offs. AFI and Top don't really give a "monkey's" outside of LCFC being in the PL so articles questioning what will happen to us in the near future should be taken serioursly, at least this issue is being written about before it goes all tits up as oppose to after.

What happens if AFI pull out and demand the repayment of all the money we owe them, will we survive? I don't want my club to go the way out Portsmouth so I'm more than happy to have articles in national newspapers, as oppose to the pathetic mouthpiece the Mercury is, discussing our future if everything doesn't come up smelling or roses. Anyone following LCFC can see the way we are going is completely unsustainable, lets at least discusss it now as oppose to when the shit hits the fan(s).

[stourbridgefox]

A lot of the investment in playing staff still has the potential to pay off. As time has gone on, Sven's signings who actually get onto the pitch have looked pretty good. We've been saying this for a while now, but give the manager a Summer to sort it and get them playing and we should see a big difference.

The good list is this:

Kasper Schmeichel

Paul Konchesky

SSL

Sol Bamba

Lee Peltier

Matt Mills (let's wait and see if he can come back from his spat with NP)

David Nugent

Jermaine Beckford (he has his doubters but I like watching him and the best is yet to come)

My point is, the money spent last Summer is not total loss, the players have every chance of being very important in a promotion chase next season. Maybe 3-4 additions in obvious areas in the Summer and we should be very strong.

Money has undoubtedly been wasted, mainly on ineffective loanees, but a major outlay in the Summer is not necessary because we have potential and quality in the squad.

[Out Foxed]

1. I doubt they care too much

.

2. This is a puff piece on an interesting fact about the team Chelsea are playing on Sunday. If you consider the the Guardian has the 6 Nations, Gold Cup and FA Cup matches between PL teams to cover their interest in LCFC is likely to be limited at best. Having a go at an article that should really bring home some truthes to LCFC fans is rather bit chrulish. We will probably lose on Sunday and we aren't going to get into the play-offs. AFI and Top don't really give a "monkey's" outside of LCFC being in the PL so articles questioning what will happen to us in the near future should be taken serioursly, at least this issue is being written about before it goes all tits up as oppose to after.

What happens if AFI pull out and demand the repayment of all the money we owe them, will we survive? I don't want my club to go the way out Portsmouth so I'm more than happy to have articles in national newspapers, as oppose to the pathetic mouthpiece the Mercury is, discussing our future if everything doesn't come up smelling or roses. Anyone following LCFC can see the way we are going is completely unsustainable, lets at least discusss it now as oppose to when the shit hits the fan(s).

[onecapwonder]

If only I could express my opinions in such an erudite manner.

[21st Century Fox]

1. I doubt they care too much

.

2. This is a puff piece on an interesting fact about the team Chelsea are playing on Sunday. If you consider the the Guardian has the 6 Nations, Gold Cup and FA Cup matches between PL teams to cover their interest in LCFC is likely to be limited at best. Having a go at an article that should really bring home some truthes to LCFC fans is rather bit chrulish. We will probably lose on Sunday and we aren't going to get into the play-offs. AFI and Top don't really give a "monkey's" outside of LCFC being in the PL so articles questioning what will happen to us in the near future should be taken serioursly, at least this issue is being written about before it goes all tits up as oppose to after.

What happens if AFI pull out and demand the repayment of all the money we owe them, will we survive? I don't want my club to go the way out Portsmouth so I'm more than happy to have articles in national newspapers, as oppose to the pathetic mouthpiece the Mercury is, discussing our future if everything doesn't come up smelling or roses. Anyone following LCFC can see the way we are going is completely unsustainable, lets at least discusss it now as oppose to when the shit hits the fan(s).

They would have a public relations nightmare on their hands and for their company they've made us the face of. It would be the exact opposite of why they bought us in the first place. Crippling a well known and historic football club isn't the sort of international recognition they want for their company. So far all the clubs that have got into trouble don't have the kind of owners whose reputations are so entwined with the clubs themselves, like ourselves and Tony Fernandes at QPR.

[katieakita]

What would the world be without speculation, Have never met Top or his Dad, never met many Thais for that matter but i have always been under the impression that they are a proud, honourable type. IMHO i think they must be pretty good business men King Power seems to be doing ok and exposure on Thai TV has got to be good for business. No doubt the PL is the aim but a big FA cup tie will help and the championship season isn't quite over for us just yet.

[woddyuk]

Totally a. Non story written by somone residing south of watford whom was struggling to fill the column inches, and whom like a lot of media, desipte the royal visit, couldn'tn't even find Leicester on a map. As theonly poor little championship side left I guess we are an annoyance to them. They'll probably mix dyer and danns up without a team sheet. Also might need wonga for cup final tickets ;-)