Where are the club financially

[whitwickfox]

I have two businesses A and B

A wants to buy out B for tax reasons, but hasn't the money, so B loans A the money and can charge what ever interest it likes with in reason. Because I owned both companies, I now set up a loan account in company A, and don't pay any tax until the loan accounts have been settled. This is the same at lcfc. Because the club had no money, king power loaned the money to them...the 8 percent is irrelevant.just makes a bigger pot for king power to write off against profits

[yorkie1999]

I have two businesses A and B

A wants to buy out B for tax reasons, but hasn't the money, so B loans A the money and can charge what ever interest it likes with in reason. Because I owned both companies, I now set up a loan account in company A, and don't pay any tax until the loan accounts have been settled. This is the same at lcfc. Because the club had no money, king power loaned the money to them...the 8 percent is irrelevant.just makes a bigger pot for king power to write off against profits

So what you are saying is the thai's bought lcfc to reduce the tax bill of king power?

[whitwickfox]

Who really buys a football club to make a profit, Im not saying that, but with all the business loop holes available, what better than to have a football club as a toy. £30million to this business ie king power and not actually the top family is just peanuts

[yorkie1999]

Don't understand why anyone would buy a football club, but then again i'm not a billionaire, but i would like to know why a family in thailand would have the slightest interest in a club like leicester, i mean its not like they grew up with posters of mark wallington on the bedroom walls, and i can see why someone with an ego would buy liverpool etc, but i just can't see the relationship with the thai owners and leicester.

[whitwickfox]

Maybe the asking price of twenty quid had something to do with it

[blueharmie]

Don't understand why anyone would buy a football club, but then again i'm not a billionaire, but i would like to know why a family in thailand would have the slightest interest in a club like leicester, i mean its not like they grew up with posters of mark wallington on the bedroom walls, and i can see why someone with an ego would buy liverpool etc, but i just can't see the relationship with the thai owners and leicester.

I also find this v strange.

[Raw Dykes]

Don't understand why anyone would buy a football club, but then again i'm not a billionaire, but i would like to know why a family in thailand would have the slightest interest in a club like leicester, i mean its not like they grew up with posters of mark wallington on the bedroom walls, and i can see why someone with an ego would buy liverpool etc, but i just can't see the relationship with the thai owners and leicester.

I'd hazard a guess that they saw it as potentially a bargain Premier League club. I guess buying a Championship club with PL facilities, and backing them for a promotion push is cheaper than buying a PL club to start with. We've already got a PL standard set up - stadium, training facilities, academy, fanbase, etc. Possibly the best value for money 2nd tier club at the time they invested. All that needs to happen for them to be owners of a PL club is one promotion. Sounds easy, doesn't it? I just hope they have enough patience to see us go up before they move on.

Edit: The fact that Leicester's such a multicultural city might have helped a bit, maybe?

[Daggers]

Can a tax expert confirm that being based in Thailand means that all talk of making a loss in the UK confers zero benefits to them?

Secondly, there are no billionaires on the board - they are millionaires who do not have this kind of cash to lob about.

Lastly, The Moodie Report confirms that King Power had a turnover last year of £355million - I could make an educated guess what this translates into as net profit but it would just be a guess...and in the ballpark of 'not enough to be continually throwing money at failure'. This especially holds true when you note that they have had continual problems with trade, a 16%ish drop from the previous year and under 50% of what was predicted in the 2004 reporting.

So, still far more questions than answers.

[Vale Blue]

Unfortunately, there are now plenty of examples of why foreign owners "buy" football clubs. In actual fact they dont "buy" them. They pay for them and then stick that amount as a loan on the clubs accounts, which ironically they charge interest against and put those payments in their pockets. Presumably, paying very little tax.

The Glaziers are the highest profile members of this business plan. If Man U ever went bust, they would lose nothing at all and would have gained millions from interest payments or dividends etc. Forest never spent 75million on players and I very much doubt they did on wages but hey ho. I'd hazard a guess that the 53million we are apparently in debt also contains the cost of buying the club. Maybe I'm wrong it's only a guess as I've said but there are quite a few examples of this type of business policy around.

MM seems to have a little black book of these characters if the Pompey debacle is anything to go by.

[Babylon]

Can a tax expert confirm that being based in Thailand means that all talk of making a loss in the UK confers zero benefits to them?

Secondly, there are no billionaires on the board - they are millionaires who do not have this kind of cash to lob about.

Lastly, The Moodie Report confirms that King Power had a turnover last year of £355million - I could make an educated guess what this translates into as net profit but it would just be a guess...and in the ballpark of 'not enough to be continually throwing money at failure'. This especially holds true when you note that they have had continual problems with trade, a 16%ish drop from the previous year and under 50% of what was predicted in the 2004 reporting.

So, still far more questions than answers.

I spent ages last year looking for info on it (the moody report is dated 2009). The latest thing I found was dated December 2011 and said that they were on course to meet projected turnover of 30 billion baht or £611m. Due to certain expansions and an improved political situation over there.

[absolutelegend]

Don't understand why anyone would buy a football club, but then again i'm not a billionaire, but i would like to know why a family in thailand would have the slightest interest in a club like leicester, i mean its not like they grew up with posters of mark wallington on the bedroom walls, and i can see why someone with an ego would buy liverpool etc, but i just can't see the relationship with the thai owners and leicester.

easy:

1) set up a shoddy holding company (aka Asian Football Investments)

2) by city for peanuts

3) get the holding company to give city interest charging loans for ~ £30million to fund player aquisition and wages

4) if city get promotion sell the club for a profit and recall the loan (or if they can't sell it recall the loan anyway)

5) if city don't get promotion then no problem! recall the loan (with interest), disolve the holding company, and watch poor old leicester city go under as they fail to service £30million quids worth of debt

basically we are fooked (allegedly)

[dave the caveman]

easy:

1) set up a shoddy holding company (aka Asian Football Investments)

2) by city for peanuts

3) get the holding company to give city interest charging loans for ~ £30million to fund player aquisition and wages

4) if city get promotion sell the club for a profit and recall the loan (or if they can't sell it recall the loan anyway)

5) if city don't get promotion then no problem! recall the loan (with interest), disolve the holding company, and watch poor old leicester city go under as they fail to service £30million quids worth of debt

basically we are fooked (allegedly)

If you are going to do this then it makes no sense at all to invest in long term club infrastructure