hackneyfox Posted 12 March 2013 Share Posted 12 March 2013 So what is the negative side of equity? The equity will have to be to KP itself as the individual owners are only worth 160m, does that make any difference? Link to comment Share on other sites More sharing options...
cc_star Posted 12 March 2013 Share Posted 12 March 2013 Did you read. what do you think turning into equity means? Has it happened? Is it going to be all of it? I thought they were just exploring doing it, or doing it to some of the debt. Surely they'll only be interested in doing it for an amount that the club's assets can cover, for example a stadium bought for £17m but was valued at nearly £50m. So what is the negative side of equity? The equity will have to be to KP itself as the individual owners are only worth 160m, does that make any difference? It will basically be their/their company's money that they're throwing down a hole with future profits or sale to cover it. We won't owe it them back, on paper but the reality is they'll be getting it back. It just 'hides' the money pumped in from the new rules. Link to comment Share on other sites More sharing options...
Foxblogger Posted 12 March 2013 Share Posted 12 March 2013 article is poorly written. Its only FFP thats messed us up, as financially we sound, all debt is about to be turned into equity, and KP are funding the club with petty cash, its FFP that screwed us over. The club have said only that there are in discussions about the possibility of converting some of the debt into equity. There is no suggestion of how much, or when this will happen. This could simply be a statement of the obvious, as the owners will have little choice but to invest at least £5m in equity next season given our overspending and the FFP regulations. To put it another way - the owners may only be committing to doing the bare minimum required under FFP. There's simply no way of telling yet. Link to comment Share on other sites More sharing options...
MooseBreath Posted 12 March 2013 Share Posted 12 March 2013 Does FFP take into account all existing debt or just debt accrued over a season? I suppose it must be the latter otherwise clubs who are currently in a lot of debt will automatically fail. That does let the owners off the hook in terms of converting existing debt to equity in order to comply with FFP. I still think they will do it though, simply because they have never given me any reason to doubt them. Link to comment Share on other sites More sharing options...
Chrysalis Posted 12 March 2013 Share Posted 12 March 2013 So what is the negative side of equity? The equity will have to be to KP itself as the individual owners are only worth 160m, does that make any difference? Also that the money came from KP itself not the owners. With their turnover it could be considered petty cash to them. Another reason I said we sound. We like a subsidy of KP now. Link to comment Share on other sites More sharing options...
hackneyfox Posted 12 March 2013 Share Posted 12 March 2013 50 million is not petty cash, not even on a turnover of a billion per year. Is that turnover in pounds or dollars? Link to comment Share on other sites More sharing options...
muzzy1981 Posted 12 March 2013 Share Posted 12 March 2013 I just hope they stick with Nige and stick with the club for one more season. IMO we don't need too many more signings, clear some of the dead wood and get a couple of solid players with Championship experience in and a couple of free/cheap youngsters. I think we will have a very strong squad next season. Link to comment Share on other sites More sharing options...
MooseBreath Posted 12 March 2013 Share Posted 12 March 2013 50 million is not petty cash, not even on a turnover of a billion per year. Is that turnover in pounds or dollars? Theyre a private business so speculating on their finances is pretty pointless. Suffice to say they didn't invest in football because they thought the football itself was good business. Everyone knows it's a money drain Link to comment Share on other sites More sharing options...
Kitchandro Posted 12 March 2013 Share Posted 12 March 2013 It's sickening that we're not even better off with all these Sky games being moved. They are an absolute disgrace. I can only hope prices go down next season or freeze if we go up. It makes sense. Link to comment Share on other sites More sharing options...
Col city fan Posted 12 March 2013 Share Posted 12 March 2013 Am I just looking at this too simplistically? I'm no financial expert.. But all I can see is A. Premiership: we would be able to get back into the black, nearly anyway. B. Championship... Our debt would just simply continue to accrue and we would have to offload more players. AND be hit by FFP. In other words... Promotion, financially, is pretty much essential. Link to comment Share on other sites More sharing options...
MooseBreath Posted 12 March 2013 Share Posted 12 March 2013 Am I just looking at this too simplistically? I'm no financial expert.. But all I can see is A. Premiership: we would be able to get back into the black, nearly anyway. B. Championship... Our debt would just simply continue to accrue and we would have to offload more players. AND be hit by FFP. In other words... Promotion, financially, is pretty much essential. Depends how much the owners need to make a return directly from the football side of things. They may well consider the overall benefits to king power to be more than worth the losses the club makes. Link to comment Share on other sites More sharing options...
Webbo Posted 12 March 2013 Share Posted 12 March 2013 In other words... Promotion, financially, is pretty much essential. It's essential for a lot of clubs but we won't all get it. Whatever happens the club will continue. Link to comment Share on other sites More sharing options...
hackneyfox Posted 12 March 2013 Share Posted 12 March 2013 I just hope they stick with Nige and stick with the club for one more season. IMO we don't need too many more signings, clear some of the dead wood and get a couple of solid players with Championship experience in and a couple of free/cheap youngsters. I think we will have a very strong squad next season. As may the 3 teams coming down from the PL plus Forest/Leeds/Hull/Watford/Palace, don't see it being any easier than this season. Link to comment Share on other sites More sharing options...
Col city fan Posted 12 March 2013 Share Posted 12 March 2013 It's essential for a lot of clubs but we won't all get it. Whatever happens the club will continue. Not many other clubs with players on a reputed 30k per week is there? And in the debt we are in? Or are there.. I'm not sure Link to comment Share on other sites More sharing options...
davieG Posted 12 March 2013 Author Share Posted 12 March 2013 I presume if they convert the debt to equity then can still pay themselves the 8% via a dividend. Link to comment Share on other sites More sharing options...
Happy Fox Posted 9 April 2013 Share Posted 9 April 2013 Link to comment Share on other sites More sharing options...
davieG Posted 9 April 2013 Author Share Posted 9 April 2013 What will be interesting is to see how they compare with this years figures, it may gives us an understanding of what financial constraints, if any that Pearson in working under. Link to comment Share on other sites More sharing options...
Happy Fox Posted 9 April 2013 Share Posted 9 April 2013 What will be interesting is to see how they compare with this years figures, it may gives us an understanding of what financial constraints, if any that Pearson in working under. It highlights to me that promotion is the only viable option and it has to happen this season otherwise some of our better players who will be on a hefty wage comparable to other teams in this division I guess such as Kasper, Konchesky etc will have to go, unless the owners plan to change their strategy to do a Dierby county for example and build from the youth and progress year on year? Link to comment Share on other sites More sharing options...
davieG Posted 9 April 2013 Author Share Posted 9 April 2013 It highlights to me that promotion is the only viable option and it has to happen this season otherwise some of our better players who will be on a hefty wage comparable to other teams in this division I guess such as Kasper, Konchesky etc will have to go, unless the owners plan to change their strategy to do a Dierby county for example and build from the youth and progress year on year? Wanting them to go wont be possible unless a PL team wants them, the wages they're earning that is contributing to our deficit will also be what stops them moving on. none of the 1st team squad apart from Logan contract runs out this year so there's at least another year of carrying there presumed high wages. Link to comment Share on other sites More sharing options...
indierich06 Posted 9 April 2013 Share Posted 9 April 2013 That makes for some very, very depressing reading. Link to comment Share on other sites More sharing options...
Saxondale Posted 9 April 2013 Share Posted 9 April 2013 Excellent, insightful article. Regarding investment in players - why do so many people still seem to be fooled by the notion that big investment in transfer fees / wages equals success? So many teams have blown absolute fortunes to absolutely no avail. Conversely, look at some of the better teams in our division - Cardiff, Palace, Watford - none of them have spent particularly big. Link to comment Share on other sites More sharing options...
KFS Posted 9 April 2013 Share Posted 9 April 2013 We need to start winning games. Link to comment Share on other sites More sharing options...
linemakers Posted 9 April 2013 Share Posted 9 April 2013 Quote Regarding investment in players - why do so many people still seem to be fooled by the notion that big investment in transfer fees / wages equals success? So many teams have blown absolute fortunes to absolutely no avail. Conversely, look at some of the better teams in our division - Cardiff, Palace, Watford - none of them have spent particularly big. Cardiff have spent the most this year 2012/13, and Watford have got round the loan system by bringing in players from Italy Link to comment Share on other sites More sharing options...
Grewks Posted 9 April 2013 Share Posted 9 April 2013 And people say we should have kept Sven? Another season of his regime would have sent us bust...no doubt about it. People have questioned why NP has not bought players in on loan etc....now we see why. This summer we need to continue to rebuild, get rid of the high earners, beckford, danns, wellens, gallagher, konch, maybe even the likes of Kasper and Nuge aswell. Then we can look at the 3 clubs which have gone down for any replacements. e.g. Peterborough - Tomlin, Boyd , Gayle, Rowe, Zakuani..... Bristol City - Adomah, Davies, Cunningham All of the above would add something to the club, most are young, and relatively cheap aswell. Getting rid of Pearson would only add to our costs, reducing any investment in players we can make...we really have been left in a sticky situation due to last season, but we have to get on with it. Link to comment Share on other sites More sharing options...
funkyrobot Posted 9 April 2013 Share Posted 9 April 2013 And people say we should have kept Sven? Another season of his regime would have sent us bust...no doubt about it. People have questioned why NP has not bought players in on loan etc....now we see why. This summer we need to continue to rebuild, get rid of the high earners, beckford, danns, wellens, gallagher, konch, maybe even the likes of Kasper and Nuge aswell. Then we can look at the 3 clubs which have gone down for any replacements. e.g. Peterborough - Tomlin, Boyd , Gayle, Rowe, Zakuani..... Bristol City - Adomah, Davies, Cunningham All of the above would add something to the club, most are young, and relatively cheap aswell. Getting rid of Pearson would only add to our costs, reducing any investment in players we can make...we really have been left in a sticky situation due to last season, but we have to get on with it. Not sure it makes sense to buy a number of players from relegated sides? If they aren't good enough to keep their current teams up then how can they be good enough to get us promoted? Link to comment Share on other sites More sharing options...
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