Leicesterpool Posted 1 March 2013 Share Posted 1 March 2013 Great news, I wonder what plans are on the table for the ground? Link to comment Share on other sites More sharing options...
Captain... Posted 1 March 2013 Share Posted 1 March 2013 Great add that to the debts and 8% interest rate.I'm not being negative on purpose and I can see the positives, but this blue tinted outlook our fans have is a reason for concern, all it means is for those who doubt the owners intentions, IF they did decide to walk away, they now own a decent bit of land.Hope this isn't the case. We don't know the full details of the deal, and I personally don't know the full set-up of ownership and exactly who owns what, but it is clear to me that the stadium and any debts being owned by the owners of the club, is much better than having it owned by a third party with no interest in the club only in getting their money. These are businessmen, and this deal makes business sense, if they have the funds available to buy the stadium, then they might as well do that rather than losing millions on interest on debt repayments. Link to comment Share on other sites More sharing options...
Babylon Posted 1 March 2013 Share Posted 1 March 2013 @davieG - Crystal palace prolly being the most famous ..Ron Noades was it ? Brightons got sold from underneath them i think I can't imagine the land alone is worth £17m, so not sure what they would gain by paying that and selling it. A financial investment from the company of £17m and us leasing it from them for x amount a year would mean both parties win presuming the amount is less than we pay now. Link to comment Share on other sites More sharing options...
whoareyaaa Posted 1 March 2013 Share Posted 1 March 2013 Great news this, shows the owners are thinking long-term and not here for a quick cash n dash. Link to comment Share on other sites More sharing options...
Jace Posted 1 March 2013 Share Posted 1 March 2013 Great add that to the debts and 8% interest rate.I'm not being negative on purpose and I can see the positives, but this blue tinted outlook our fans have is a reason for concern, all it means is for those who doubt the owners intentions, IF they did decide to walk away, they now own a decent bit of land.Hope this isn't the case. I can't imagine the land alone is worth £17m, so not sure what they would gain by paying that and selling it. A financial investment from the company of £17m and us leasing it from them for x amount a year would mean both parties win presuming the amount is less than we pay now. King Power wouldn't really benefit from buying the ground for £17 million as an investment to fall back on if they wanted to walk away and get rid of the club, as Babylon said the land alone would not be worth £17 million try more around £3-5 million. You have only got to turn the clock back 12 years and look at the sale of Filbert Street as an example. Now that Leicester Tigers are developing Welford Road the only business who the ground is worth anything to is Leicester City Football Club Link to comment Share on other sites More sharing options...
lcfcmatt93 Posted 1 March 2013 Share Posted 1 March 2013 Does this mean we can buy some good players now the owners have bagged another £17m from buying the stadium??? Link to comment Share on other sites More sharing options...
Leicester Lass Posted 1 March 2013 Share Posted 1 March 2013 Does this mean we can buy some good players now the owners have bagged another £17m from buying the stadium??? Errrmm, you do realise them buying the stadium means they don't get any money, right? Link to comment Share on other sites More sharing options...
Manwell Pablo Posted 1 March 2013 Share Posted 1 March 2013 Errrmm, you do realise them buying the stadium means they don't get any money, right? Not to mention we can't buy anyone, the transfer window is closed. Link to comment Share on other sites More sharing options...
Bayfox Posted 1 March 2013 Share Posted 1 March 2013 We don't know the full details of the deal, and I personally don't know the full set-up of ownership and exactly who owns what, but it is clear to me that the stadium and any debts being owned by the owners of the club, is much better than having it owned by a third party with no interest in the club only in getting their money. These are businessmen, and this deal makes business sense, if they have the funds available to buy the stadium, then they might as well do that rather than losing millions on interest on debt repayments. King Power wouldn't really benefit from buying the ground for £17 million as an investment to fall back on if they wanted to walk away and get rid of the club, as Babylon said the land alone would not be worth £17 million try more around £3-5 million. You have only got to turn the clock back 12 years and look at the sale of Filbert Street as an example. Now that Leicester Tigers are developing Welford Road the only business who the ground is worth anything to is Leicester City Football Club Both these points raise a similar point, a 3rd party is unlikely to be able to force the closure of the club, unless it hadn't paid it's debts. Our owners could at any point chose to walk away doing whatever they want with the assets. Based on the value of the land being so much less than the stadium, it is unlikely that a the owners would sell, granted, however it's better than getting nothing back. As for a 3rd party again they would have been unlikely sell from under the noses of the club as they would get a much smaller return. The owners can now decide to do as they please. I'm not looking to slag our owners off, but I do worry about the blind faith placed in them. As pointed out the ground is only really worth something with tenants, yet dispite not owning it last year, it was included in the asset list at £30 million quid still. Creative accounting to say the least, It only cost around that sum 10 or so years ago, allowing for Depreciation it is not worth anywhere near that figure. Link to comment Share on other sites More sharing options...
Jace Posted 1 March 2013 Share Posted 1 March 2013 Does this mean we can buy some good players now the owners have bagged another £17m from buying the stadium??? Not sure if genuine or joking Link to comment Share on other sites More sharing options...
Dan LCFC Posted 1 March 2013 Share Posted 1 March 2013 Credit. That's the best thing they've done. Link to comment Share on other sites More sharing options...
Deucalion Posted 1 March 2013 Share Posted 1 March 2013 Does this mean we can buy some good players now the owners have bagged another £17m from buying the stadium??? Do you mean in terms of FFP? If so, I think the consensus is no, as neither the debt nor the asset is considered alongside the cost of playing staff. On the subject of our owners being land speculators. Well...the training ground is on prime housing real estate. It is near the motorway junction and surrounded by housing. That land must be worth a bit. So have they moved the training ground somewhere else and sold the land? Not at all, they have spent money on the original site. I know it is hard to believe for some but they might actually be genuine. Link to comment Share on other sites More sharing options...
Royston. Posted 1 March 2013 Share Posted 1 March 2013 just buttering us up for when they merge us with coventry Link to comment Share on other sites More sharing options...
Happy Fox Posted 1 March 2013 Share Posted 1 March 2013 Will they will charge the "club" rent just like they do with the loan and the 8% interest rate? Link to comment Share on other sites More sharing options...
Dan LCFC Posted 1 March 2013 Share Posted 1 March 2013 Sorry to bang on about them again, but one of you little experts, what do you think this will mean for ticket prices? Link to comment Share on other sites More sharing options...
Jace Posted 1 March 2013 Share Posted 1 March 2013 Will they will charge the "club" rent just like they do with the loan and the 8% interest rate? Before this deal we would of been paying ground rent on the lease, now we wouldn't have to. What you're suggesting would be the same as buying a house and charging yourself rent to live in it Link to comment Share on other sites More sharing options...
Captain... Posted 1 March 2013 Share Posted 1 March 2013 King Power wouldn't really benefit from buying the ground for £17 million as an investment to fall back on if they wanted to walk away and get rid of the club, as Babylon said the land alone would not be worth £17 million try more around £3-5 million. You have only got to turn the clock back 12 years and look at the sale of Filbert Street as an example. Now that Leicester Tigers are developing Welford Road the only business who the ground is worth anything to is Leicester City Football Club As pointed out the ground is only really worth something with tenants, yet dispite not owning it last year, it was included in the asset list at £30 million quid still. Creative accounting to say the least, It only cost around that sum 10 or so years ago, allowing for Depreciation it is not worth anywhere near that figure. Well this is another thing I'm not sure on, Leicester City had already paid a reasonable amount of the ground, so it depends if King Power bought the clubs stake in the ground when they bought the club, or if they have just bought the debt off that American company. If they have only bought the debt then LCFC PLC* still own the ground and need pay off the debt to King Power, if King Power bought our stake in the ground originally then they now fully own the stadium as part of buying the club, and if had already done so then we would have been paying rent to them anyway, if there was to ever be a rental agreement. Or the ground is now fully in the clubs name and owned by the club as part LCFC PLC, and the debt paid off by the owners. If it was included in the asset list, then it is owned by the club, so either the club has paid off the debt, or King Power has bought the debt off the American company, and the club will pay the debt back to King Power. The whole business structure does confuse me, but really we are no worse off, and potentially a lot better off. *I am using LCFC PLC to distinguish between the club as a business entity and King Power Group. Link to comment Share on other sites More sharing options...
Jace Posted 1 March 2013 Share Posted 1 March 2013 Well this is another thing I'm not sure on, Leicester City had already paid a reasonable amount of the ground, so it depends if King Power bought the clubs stake in the ground when they bought the club, or if they have just bought the debt off that American company. If they have only bought the debt then LCFC PLC* still own the ground and need pay off the debt to King Power, if King Power bought our stake in the ground originally then they now fully own the stadium as part of buying the club, and if had already done so then we would have been paying rent to them anyway, if there was to ever be a rental agreement. Or the ground is now fully in the clubs name and owned by the club as part LCFC PLC, and the debt paid off by the owners. If it was included in the asset list, then it is owned by the club, so either the club has paid off the debt, or King Power has bought the debt off the American company, and the club will pay the debt back to King Power. The whole business structure does confuse me, but really we are no worse off, and potentially a lot better off. *I am using LCFC PLC to distinguish between the club as a business entity and King Power Group. Do you know what a PLC is? Link to comment Share on other sites More sharing options...
Jon the Hat Posted 1 March 2013 Share Posted 1 March 2013 Wow, some people are easily pleased. This means nothing at all really, but I am sure it is more tax efficient for the KP group. Link to comment Share on other sites More sharing options...
Captain... Posted 1 March 2013 Share Posted 1 March 2013 Do you know what a PLC is? Yes. Can you give me the exact business structure of the club and its relationship with King Power Group, what the different legal entities are, and who owns what? If not I will stick to my naming convention, even if it is not accurate. Link to comment Share on other sites More sharing options...
Jace Posted 1 March 2013 Share Posted 1 March 2013 Yes. Can you give me the exact business structure of the club and its relationship with King Power Group, what the different legal entities are, and who owns what? If not I will stick to my naming convention, even if it is not accurate. Why are you labelling us a PLC then? Link to comment Share on other sites More sharing options...
David Hankey Posted 1 March 2013 Share Posted 1 March 2013 Well it's all in the same pot now which is no bad thing and it means greater stability for our Club. Free champagne for all fans at the next home game would do very nicely!! Link to comment Share on other sites More sharing options...
Ozwin Posted 1 March 2013 Share Posted 1 March 2013 Be nice if they improve it somewhat now. Give it some identity. Link to comment Share on other sites More sharing options...
Captain... Posted 1 March 2013 Share Posted 1 March 2013 Why are you labelling us a PLC then? If you read my post, you would see why: *I am using LCFC PLC to distinguish between the club as a business entity and King Power Group. In case you missed it. Link to comment Share on other sites More sharing options...
Libertine Dream Posted 1 March 2013 Share Posted 1 March 2013 If you read my post, you would see why: In case you missed it. Couldn't you have used Ltd as that's what it is Link to comment Share on other sites More sharing options...
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