davieG Posted 4 March 2013 Share Posted 4 March 2013 Merc By Ian Griffin The owners of Leicester City have pumped a further £14.6 million into the club since the start of this season, it is revealed today. The cash injection comes on top of the £61.6 million which had already been injected by King Power International since they took control in 2010. ​ OWNERS: Vichai Srivaddhanaprabha and his son, Aiyawatt The club said it had been assured further funding would be made available from the Thai business as City enter a crucial period in their push for promotion to the Premier League. On Saturday, the club revealed it had made a loss of £29.7 million in the year to May 31, 2012 – believed to be the highest deficit ever racked up by a Championship club. A statement from the directors issued alongside the club's latest accounts said: "King Power International has confirmed that finance will be available to fund future trading and support the football strategy to achieve promotion back to the Premier League. "Since June 1, 2012, £14.6 million of new funding has been provided and the directors are confident further funding will be provided as required." The club said the money was used on players and improving the facilities at King Power Stadium. On Friday, King Power revealed they had bought the stadium from American pension fund manager Teachers Insurance in a £17 million deal. A statement in the accounts said the club had continued to incur trading losses in the five months to November 30, 2012. Susan Whelan, City's chief executive, said on Saturday she was unable to provide further details on the club's financial performance so far this season. The club's accounts do not say whether the £14.6 million of new funding is a loan. Other cash provided by King Power, a duty-free retailer, has come in the form of loans. The accounts show the majority of the £60 million plus which had been loaned to the club by King Power up until May 31, 2012, is subject to interest charges of 8 per cent. City's £29.7 million loss last season has been blamed on a soaring wage bill built up during Sven-Goran Eriksson's reign as manager. Salaries rocketed to £27.7 million from £16.6 million the previous season. Eriksson was sacked by the club in October 2011, after serving just over a year as manager. In a story in the Mercury on Saturday, the club chairman, Vichai Srivaddhanaprabha, said: "My vision is for Leicester City to take its place as a highly respected and successful Premier League club." Read more: http://www.thisisleicestershire.co.uk/pound-14-6m-pumped-Leicester-City-far-season-King/story-18314005-detail/story.html#ixzz2MYuLS54h Follow us: @thisisleics on Twitter | thisisleicestershire on Facebook Link to comment Share on other sites More sharing options...
cc_star Posted 4 March 2013 Share Posted 4 March 2013 Link to comment Share on other sites More sharing options...
flowwolf Posted 4 March 2013 Share Posted 4 March 2013 Bloody hell even I can't moan at that ! sorry I meant constructive critism. Link to comment Share on other sites More sharing options...
Electricity Sports 1960 Posted 4 March 2013 Share Posted 4 March 2013 Can someone explain how the losses and the "loans" to the club by the owners fit in with the Financial Fair Play objectives of UEFA? Link to comment Share on other sites More sharing options...
peterborofox Posted 4 March 2013 Share Posted 4 March 2013 All Sven's fault........ Link to comment Share on other sites More sharing options...
cc_star Posted 4 March 2013 Share Posted 4 March 2013 All Sven's fault........ It'll hang over us whilst those wages are here, both new signings & improved contracts. Owners do say they'll be able to stick to FFP in 2013/14 though regardless of division we're in. Link to comment Share on other sites More sharing options...
MooseBreath Posted 4 March 2013 Share Posted 4 March 2013 Can someone explain how the losses and the "loans" to the club by the owners fit in with the Financial Fair Play objectives of UEFA? They don't, hence this will be one of the last times we ever hear about someone investing in the club. Link to comment Share on other sites More sharing options...
Zingari Posted 4 March 2013 Share Posted 4 March 2013 daddy doesn't look too happy about it Link to comment Share on other sites More sharing options...
Foxes_Trust Posted 4 March 2013 Share Posted 4 March 2013 Can someone explain how the losses and the "loans" to the club by the owners fit in with the Financial Fair Play objectives of UEFA? Allowed level of investment to adhere to FFP rules season 2012/3 = £6 million If still in the Championship next season allowed investment level is £5 million, which is the season where the financial results would trigger a transfer embargo if the FFP rules are not met, it would be interesting to see the plan that achieves meeting the criteria if not promoted Link to comment Share on other sites More sharing options...
Electricity Sports 1960 Posted 4 March 2013 Share Posted 4 March 2013 I still don't get it. The owners had to support the club to the tune of £30m last year and £14m so far this year., A vast proportion of that must go on player's wages. If not promoted, they will only be able to loan £6m. That leaves a sum of about £24m which will not be available to pay the players. So do the players take a pay cut? I only got an "O" level in maths at school so maybe my sums are wrong? Link to comment Share on other sites More sharing options...
Vale Blue Posted 4 March 2013 Share Posted 4 March 2013 http://www.bbc.co.uk/sport/0/football/17841566 Here's a link to the FFP regs. I'm starting to get baffled here. Our owners are just riding rough shod over the FFP rules they are taking UEFA head on. Given our history of financial irregularities, we are going to get pasted. Link to comment Share on other sites More sharing options...
Greatness_Since_1884 Posted 4 March 2013 Share Posted 4 March 2013 Allowed level of investment to adhere to FFP rules season 2012/3 = £6 million If still in the Championship next season allowed investment level is £5 million, which is the season where the financial results would trigger a transfer embargo if the FFP rules are not met, it would be interesting to see the plan that achieves meeting the criteria if not promoted The way I see it then is that we're almost certain to break the restrictions and the owners are banking on a promotion in either this season or 2013-14. If that is the case we'll have to pay the FFP tax which would be offset by the increased revenue. If we're not promoted this season or next, we'll have a transfer embargo for the 2014-15 season. Is that correct? Link to comment Share on other sites More sharing options...
MooseBreath Posted 4 March 2013 Share Posted 4 March 2013 http://www.bbc.co.uk/sport/0/football/17841566 Here's a link to the FFP regs. I'm starting to get baffled here. Our owners are just riding rough shod over the FFP rules they are taking UEFA head on. Given our history of financial irregularities, we are going to get pasted. FFP doesn't come into play properly until next year. We won't be receiving any more investment from the owners after this season. Link to comment Share on other sites More sharing options...
Guest MattP Posted 4 March 2013 Share Posted 4 March 2013 Let's just hope we go up. Not worth thinking about what happens if we are still down here in two seasons. Link to comment Share on other sites More sharing options...
Deucalion Posted 4 March 2013 Share Posted 4 March 2013 Didn't they say they were in the process of turning debt into assets? In which case, we wouldn't owe them anything as such and would start debt free? Link to comment Share on other sites More sharing options...
leicesterseddon Posted 4 March 2013 Share Posted 4 March 2013 'The accounts show the majority of the £60 million plus which had been loaned to the club by King Power up until May 31, 2012, is subject to interest charges of 8 per cent' Am I the only one that thinks we'll look back on articles like this in ten or twenty years' time and say to ourselves 'it was obvious really, we should have seen it coming...'? Link to comment Share on other sites More sharing options...
ruisliptiger Posted 4 March 2013 Share Posted 4 March 2013 'The accounts show the majority of the £60 million plus which had been loaned to the club by King Power up until May 31, 2012, is subject to interest charges of 8 per cent' Am I the only one that thinks we'll look back on articles like this in ten or twenty years' time and say to ourselves 'it was obvious really, we should have seen it coming...'? I was just about to comment on this myself. I never realised the investments were in the form of loans. Now I do know I'm very surprised they are charging interest on it. In the long run they are effectively taking money out of your club. They're gambling on recouping the money if you gain promotion and will settle for recouping it slowly via the loans if it doesn't pan out. Meanwhile Aiyawatt has a rich boys toy to play with. I'd be uncomfortable with this if it was my club. Link to comment Share on other sites More sharing options...
MooseBreath Posted 4 March 2013 Share Posted 4 March 2013 I was just about to comment on this myself. I never realised the investments were in the form of loans. Now I do know I'm very surprised they are charging interest on it. In the long run they are effectively taking money out of your club. They're gambling on recouping the money if you gain promotion and will settle for recouping it slowly via the loans if it doesn't pan out. Meanwhile Aiyawatt has a rich boys toy to play with. I'd be uncomfortable with this if it was my club. If it were your club you'd probably know that they've said they are going to convert the loans to equity. Link to comment Share on other sites More sharing options...
spittingfeathers Posted 4 March 2013 Share Posted 4 March 2013 Speculate to accumulate Link to comment Share on other sites More sharing options...
shiv Posted 4 March 2013 Share Posted 4 March 2013 Why is everyone so surprised it's a loan? Who would put £60M into a football club and not ask for it back? Link to comment Share on other sites More sharing options...
Ely fox Posted 4 March 2013 Share Posted 4 March 2013 Bet the owners wished they had bought into another club now Link to comment Share on other sites More sharing options...
Guest MattP Posted 4 March 2013 Share Posted 4 March 2013 Why is everyone so surprised it's a loan? Who would put £60M into a football club and not ask for it back? Mansoor, Ambramovic, Lerner, Gatzidis, Peter Coates, Theo Papitis? Could name 50. I'd be all for a Chairman who was actually intending to spend their money on the football club for success rather than to end up with a profit, the latter is rarely successful. Link to comment Share on other sites More sharing options...
Jace Posted 4 March 2013 Share Posted 4 March 2013 I was just about to comment on this myself. I never realised the investments were in the form of loans. Now I do know I'm very surprised they are charging interest on it. In the long run they are effectively taking money out of your club. They're gambling on recouping the money if you gain promotion and will settle for recouping it slowly via the loans if it doesn't pan out. Meanwhile Aiyawatt has a rich boys toy to play with. I'd be uncomfortable with this if it was my club. The outstanding debt and loans are about to be cleared through investment in shares, so no need to feel uncomfortable anymore Link to comment Share on other sites More sharing options...
Guest MattP Posted 4 March 2013 Share Posted 4 March 2013 The outstanding debt and loans are about to be cleared through investment in shares, so no need to feel uncomfortable anymore We did that under Smeaton I think, didn't realise we were allowed to become a PLC again. I don't think anyone realises what's going on, no doubt the Thais didn't plan for this when they purchased the club though. Might be trying the same thing as what the Glazers have done but on a smaller scale. Link to comment Share on other sites More sharing options...
unreachable Posted 4 March 2013 Share Posted 4 March 2013 Is it really that helpful to have discussions on Radio Leicester by people who are not qualified accountants? Seems like bad journalism to me. Link to comment Share on other sites More sharing options...
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