Club Statement on Ownership

[Basildon Fox]

Is this a good thing? We are now owned by a company rather than a family...but that family owns that company. Bit confusing but hey ho.

The company is worth shit loads more than the personal wealth of our owners. I have no idea though if this is a good, bad or indifferent thing though. If it goes back to AFI next year then we can safely assume it is for tax reasons.

[davieG]

It's rarely ever been clear who and what the status of the 'owners' of LCFC has been except perhaps during the some of the MON / Pierrepoint era when we had 'ordinary' fans that were shareholders and the books were a bit more open not that it did those fans any good as the lost all their money.

Which ever way we go financially, managing our finances carefully or going for broke it's pretty much down to luck in getting a manager who brings success and there's no magic formula for selecting the right manager, money, previous achievements, experience, bubbly or dour character whichever you choose whichever combination you have doesn't guarantee you success.

[cc_star]

It's rarely ever been clear who and what the status of the 'owners' of LCFC has been except perhaps during the some of the MON / Pierrepoint era when we had 'ordinary' fans that were shareholders and the books were a bit more open not that it did those fans any good as the lost all their money.

Which ever way we go financially, managing our finances carefully or going for broke it's pretty much down to luck in getting a manager who brings success and there's no magic formula for selecting the right manager, money, previous achievements, experience, bubbly or dour character whichever you choose whichever combination you have doesn't guarantee you success.

Yep, nothing guarantees success. There is one guarantee of complete & total failure though and that's spending far beyond your means on transfers & importantly wages, for the level you're at.

[Zingari]

I have no idea what this means. Hope this helps everyone.

I thought I was alone , so it's helped me enormously , thanks

[THEFATBASTARD]

Great news.. all we need now is Harry Redknapp and his tax accountant and we are "quids" in...together they can play the calculator like Liberace....I understand Redknapps autobiography is to be called ..A life offshore...

[Deucalion]

The turnover of King Power is £4 billion.

So under Financial Fair Play, does that mean we can spend £4 billion and 3 million next year? That'll keep Harry happy.

Without knowing any more facts than anybody else, I cannot see how making LCFC part of King Power International makes the owners more likely to sell. It looks like what they say it is, which is strengthening the link between the club and their company.

Surely it makes administration less likely too, as it would be an administration from within the ranks of KPI rather than a company held by them at arms length?

I panic about anything but I'm not panicking about this.

[Captain...]

Surely anyone who looked at last years accounts would have some concern?

Over the accounts, if you have a reason to be concerned then be concerned, but don't invent concern and panic over something that is most likely completely irrelevant to the club, and most likely in our best interest.

If the outcome will have a direct impact on you, then surely you have every right to be concerned about something, even if you don't actually know anything or there's nothing you can do about it. It's only natural to worry about these things to some extent.

I am not saying you are wrong to be concerned over something that is a genuine cause for concern when it comes to our club, but this change to owners is not something to be concerned about, unless you know any different, in which case please enlighten us all and we will share your concern.

[cc_star]

The turnover of King Power is £4 billion.

So under Financial Fair Play, does that mean we can spend £4 billion and 3 million next year? That'll keep Harry happy.

Without knowing any more facts than anybody else, I cannot see how making LCFC part of King Power International makes the owners more likely to sell. It looks like what they say it is, which is strengthening the link between the club and their company.

Surely it makes administration less likely too, as it would be an administration from within the ranks of KPI rather than a company held by them at arms length?

I panic about anything but I'm not panicking about this.

I'd say it makes them less likely to sell, IMO

Football clubs lose money

They make money & presumably have to pay tax on their profits

Therefore our losses will hinder their profits a bit and reduce their tax

Bringing it all under their roof will benefit them, which I suppose is good news for a our security, but I don't know if it has other FFP advantages

[DorsetFox9]

Btw, King Power the company is worth over £2b.

[cc_star]

Over the accounts, if you have a reason to be concerned then be concerned, but don't invent concern and panic over something that is most likely completely irrelevant to the club, and most likely in our best interest.

Re: the accounts... the club was over £50m in debt to the Thai's in our last accounts, presumably from end of May this year... as football clubs are generally ran as loss making businesses that £50m+ will obviously have increased further, probably in excess of £60m towards £70m by the end of the tax year in April '13. If you think that's not cause for concern you live in cloud cuckoo land, not that we can do anything about it and in appointing NP and running a conservative transfer policy as well as clearing the decks of deadwood & high earners they appear to want to get things under control to prevent that debt rocketing uncontrollably

This latest transfer of ownership is nothing to be scared of concerned about IMO though, bringing it under their roof rather than keeping it at arms length means they're more attached to us than ever and of they want to see their £60m+ back then they need to be here for the long haul.

[Happy Fox]

What happens to NP's contract as this was made during AFI is it now null?

[marty78]

What happens to NP's contract as this was made during AFI is it now null?

Of course not.

[Guest MattP]

Over the accounts, if you have a reason to be concerned then be concerned, but don't invent concern and panic over something that is most likely completely irrelevant to the club, and most likely in our best interest.

I went through the accounts pretty thoroughly as I was helping a friend who was doing his ACCA 2nd year project at the time and he used as the case study.

I agree we shouldn't cause panic over nothing but we also shouldn't pretend things like today are in our best interests as any sort of change like this usually comes from something that hasn't quite gone to plan behind the scenes, if this was the plan in the first they wouldn't have waited two years to implement it.

[Jace]

Although I can see why some are concerned the club has always made losses on this scale long before the current owners turned up. This why we failed badly as a PLC even Milan made huge losses in league 1. None of us want the club to operate on a big loss but the only way it is going to be sustainable is with an weathly backer which we are lucky enough to have and this is as financially stable as we are going to see here

[Guest MattP]

Although I can see why some are concerned the club has always made losses on this scale long before the current owners turned up. This why we failed badly as a PLC even Milan made huge losses in league 1. None of us want the club to operate on a big loss but the only way it is going to be sustainable is with an weathly backer which we are lucky enough to have and this is as financially stable as we are going to see here

Never in our history have we made anywhere near like the losses we currently are!

This is not financially stability, please do not refer to it as anything like it, it's as far detached from a stable financial business model as a lower division football club can get.

[Foxfromburbage]

£1m Net Spend so far this year shows that the purse strings are tight and the realisation they didn't have a clue appointing Sven who wasted a massive amount of cash.

Best option at the moment is that NIgel will pull us around and then - In Nigel they will trust and give him a few quid for a final push at the end of the season.

Promotion looms !

[Harry - LCFC]

Won't FFP just force us into financial stability eventually? As long as we don't roll over and die as a club in the next few years we'll be fine.

I'm really not worried about our finances as clubs won't be allowed to kill themselves off with reckless spending in future.

[Deucalion]

The statement on the OS states that there are no changes in personnel.

[Jace]

Never in our history have we made anywhere near like the losses we currently are!

This is not financially stability, please do not refer to it as anything like it, it's as far detached from a stable financial business model as a lower division football club can get.

I thought around 2001/02 we were operating at a loss of around £60 million before the Stadium was sold and the club wrote off approx £30 million in adminstration?

[Guest MattP]

I thought around 2001/02 we were operating at a loss of around £60 million before the Stadium was sold and the club wrote off approx £30 million in adminstration?

I don't think the operating loss was ever reported, I dont remember if it was, we had debts of 30million though.

http://news.bbc.co.u...ess/2349397.stm

We have an official debt of £57million now (and that's with accounts filed before the Beckford and Mills deals and interest at 8%) and what that figure will be on the next set of accounts I have no idea.

[Jace]

I don't think the operating loss was ever reported, I dont remember if it was, we had debts of 30million though.

http://news.bbc.co.u...ess/2349397.stm

We have an official debt of £57million now (and that's with accounts filed before the Beckford and Mills deals and interest at 8%) and what that figure will be on the next set of accounts I have no idea.

Well hopefully now the loans and debt will be settled within King Power, I have to admit the club has always been an awful business model, if I ever won the Euro Millions I would keep well away from any investment

[jonthefox]

So are we loaded or not?.

[MPH]

Not

[absolutelegend]

This still doesn't change the fact that some businessmen with no apparant connection or concern for Leicester City have ran up debts of £50m+ in the last two seasons, which will increase year on year if something doesn't change.

Until somebody (i.e. the owners) tells me extactly what they want with out club then I will continue to be concerned.

Additionally, until somebody tells me exactly how they plan on a) servicing this debt and b) clearing this debt then I shall remain VERY concerned.

All we have to go on is the word of the owners that quite frankly, none of us on this message board know anything about.

[Frost]

Its been concerning from day one. Can't do anything, just gotta go with it.