indierich06 Posted 15 July 2013 Share Posted 15 July 2013 is this good or bad!!!!????!!!??? Makes no difference, FFP means they can only spend a set amount either way. Its not like they've just given us money in the past either, the vast majority has just been loaned to the club at 8% interest. Link to comment Share on other sites More sharing options...
LeicesterAreGoingUp Posted 15 July 2013 Share Posted 15 July 2013 Makes no difference, FFP means they can only spend a set amount either way. Its not like they've just given us money in the past either, the vast majority has just been loaned to the club at 8% interest. True, we owe 9.4% of his whole worth! (according to mike mccharty) Link to comment Share on other sites More sharing options...
Happy Fox Posted 15 July 2013 Share Posted 15 July 2013 Makes no difference, FFP means they can only spend a set amount either way. Its not like they've just given us money in the past either, the vast majority has just been loaned to the club at 8% interest. I guess it will make a difference when we finally get promotion because I imagine they would spend big wonga. Link to comment Share on other sites More sharing options...
indierich06 Posted 15 July 2013 Share Posted 15 July 2013 I guess it will make a difference when we finally get promotion because I imagine they would spend big wonga. I'm sure they'd loan us big wonga, all at a healthy rate of interest. Link to comment Share on other sites More sharing options...
hackneyfox Posted 15 July 2013 Share Posted 15 July 2013 Mate of mine was talking to the cov owners and they told him they have pots of cash. Don't know what the sky blue boys are getting all worked up about. They are owned by Sisu which is basically a hedge fund made up of hundreds of investors, there are no actual owners as such to talk to. Link to comment Share on other sites More sharing options...
Danno Posted 15 July 2013 Share Posted 15 July 2013 Cant they sponsor a seat or something?? Link to comment Share on other sites More sharing options...
whitwickfox Posted 15 July 2013 Share Posted 15 July 2013 indierich why do you suppose they are lending to us they are spending their own money and charging themselves interest just a tax dodge if it all goes tits up, then it is they who lose out Link to comment Share on other sites More sharing options...
indierich06 Posted 15 July 2013 Share Posted 15 July 2013 indierich why do you suppose they are lending to us they are spending their own money and charging themselves interest just a tax dodge if it all goes tits up, then it is they who lose out Because it's a well established fact. They've pumped millions into the club, but it's all just loaned - with 8% interest. They also own our major assets, such as the stadium now too. They're not charging themselves interest, they're loaning money to the club and sticking an interest rate of 8% on whatever they've loaned to us. I'm sure there are others on here who would back this up as well. Link to comment Share on other sites More sharing options...
Babylon Posted 15 July 2013 Share Posted 15 July 2013 Because it's a well established fact. They've pumped millions into the club, but it's all just loaned - with 8% interest. They also own our major assets, such as the stadium now too. They're not charging themselves interest, they're loaning money to the club and sticking an interest rate of 8% on whatever they've loaned to us. I'm sure there are others on here who would back this up as well. Are the club actually paying that interest currently? I don't know why but I seem to remember seeing somewhere that they CAN charge the 8%, but currently hadn't done so. I might have completely made that up mind you, so please nobody quote me on that. Link to comment Share on other sites More sharing options...
indierich06 Posted 15 July 2013 Share Posted 15 July 2013 Are the club actually paying that interest currently? I don't know why but I seem to remember seeing somewhere that they CAN charge the 8%, but currently hadn't done so. I might have completely made that up mind you, so please nobody quote me on that. I'm not sure if they're paying it off or if it's just accruing. Either way, it's bad news. Link to comment Share on other sites More sharing options...
yorkie1999 Posted 15 July 2013 Share Posted 15 July 2013 Are the owners part of the club? Link to comment Share on other sites More sharing options...
Babylon Posted 15 July 2013 Share Posted 15 July 2013 I'm not sure if they're paying it off or if it's just accruing. Either way, it's bad news. The perhaps completely made up thing I'm referring too in my head said they hadn't taken up that option. So we were doing neither. I will try download the accounts at some point, I'm sure there will be something in there. Are the owners part of the club? Yeah... they own it. Link to comment Share on other sites More sharing options...
yorkie1999 Posted 15 July 2013 Share Posted 15 July 2013 The perhaps completely made up thing I'm referring too in my head said they hadn't taken up that option. So we were doing neither. I will try download the accounts at some point, I'm sure there will be something in there. Yeah... they own it. Do they also own the debt? Link to comment Share on other sites More sharing options...
Babylon Posted 15 July 2013 Share Posted 15 July 2013 Do they also own the debt? Well yes technically, the club is in debt to them and they own the club. The club can be used as a vehicle to repay that debt though. For instance, lets say normally we'd have a budget of £21m for wages, running the club etc etc. They could take off a million each year to pay the interest for the next 500+ years if they wanted and still leave the club with £20m to run with. Thus replaying what they lent and also giving them/their family a nice little income for the rest of their lives. FFP plays into every clubs owners hands really, no more pressure from fans about why nothing is being spent... well apart from a few unable to grasp the concept. Link to comment Share on other sites More sharing options...
lgfualol Posted 15 July 2013 Share Posted 15 July 2013 Let's buy Messi Link to comment Share on other sites More sharing options...
Danno Posted 15 July 2013 Share Posted 15 July 2013 Let's buy MessiDon't think he'd want to sit on the bench Link to comment Share on other sites More sharing options...
_Fatboyslow_ Posted 15 July 2013 Share Posted 15 July 2013 Don't think he'd want to sit on the bench I don't think Wellens would be to happy about this Link to comment Share on other sites More sharing options...
MrSpaM Posted 15 July 2013 Share Posted 15 July 2013 Can we not just have 2-3 seats designated in the ground that cost £1,000,000 to sit in, and then top can just charge himself to sit in them? Link to comment Share on other sites More sharing options...
MooseBreath Posted 16 July 2013 Share Posted 16 July 2013 Well yes technically, the club is in debt to them and they own the club. The club can be used as a vehicle to repay that debt though. For instance, lets say normally we'd have a budget of £21m for wages, running the club etc etc. They could take off a million each year to pay the interest for the next 500+ years if they wanted and still leave the club with £20m to run with. Thus replaying what they lent and also giving them/their family a nice little income for the rest of their lives. FFP plays into every clubs owners hands really, no more pressure from fans about why nothing is being spent... well apart from a few unable to grasp the concept. Business owners pocketing the difference between income and outgoings is hardly a new thing. It's called profit. It's quite central to the whole idea of a business. If that's what the owners want to do, good for them. They'll need to be making a profit first of course, and for that we'll need to be a successful football club. All this scaremongering about the loans is nonsense. It's like taking your wallet from your left pocket and putting it in your right and then telling your right pocket it owes the left interest. You can say it all you like, and if it saves on tax then that's great, but at the end of the day you're still only talking to yourself. Link to comment Share on other sites More sharing options...
Babylon Posted 16 July 2013 Share Posted 16 July 2013 They'll need to be making a profit first of course, and for that we'll need to be a successful football club Well now FFP is here that's not really right, all clubs will have to spend what they earn (or less). Clubs will cut their cloth accordingly, wages in the championship will sink and most should be able to turn a profit whilst being quite average or unsuccessful. Link to comment Share on other sites More sharing options...
Foxes_Trust Posted 16 July 2013 Share Posted 16 July 2013 Are the club actually paying that interest currently? I don't know why but I seem to remember seeing somewhere that they CAN charge the 8%, but currently hadn't done so. I might have completely made that up mind you, so please nobody quote me on that. The last set of published accounts for season 2011/12 showed interest payments of £3.9m, so the 8% is being applied, although a more recent loan had a 6% interest rate it also noted. Link to comment Share on other sites More sharing options...
Foxes_Trust Posted 16 July 2013 Share Posted 16 July 2013 Well now FFP is here that's not really right, all clubs will have to spend what they earn (or less). Clubs will cut their cloth accordingly, wages in the championship will sink and most should be able to turn a profit whilst being quite average or unsuccessful. We await the 2012/13 accounts - in theory they could have converted all of the loans to equity during that period (a reference to doing so was made when the 2011/12 accounts were published, but it didn't state whether all or some of the loans). Doing so, would cut the interest off future financial accounts, however it means the owners would be no longer be certain of getting their investment back There is no advantage in doing this after June 1st this year, as the value of the conversion to equity would count as new investment under FFP, so be limited to £5m without incurring a penalty. We had this information directly from the Football League Link to comment Share on other sites More sharing options...
James. Posted 17 July 2013 Share Posted 17 July 2013 The last set of published accounts for season 2011/12 showed interest payments of £3.9m, so the 8% is being applied, although a more recent loan had a 6% interest rate it also noted. Does this therefore imply that the investment the Thais have made in the club which they are due interest is somewhere between 49m and 65m (assuming the interest rate range is 6% to 8%). Link to comment Share on other sites More sharing options...
Babylon Posted 17 July 2013 Share Posted 17 July 2013 The last set of published accounts for season 2011/12 showed interest payments of £3.9m, so the 8% is being applied, although a more recent loan had a 6% interest rate it also noted. That seems odd to me. Why pay yourself £4m in interest payments when you know you are going to have to lend the club money to pay yourself back anyway?? Link to comment Share on other sites More sharing options...
5waller5 Posted 19 July 2013 Share Posted 19 July 2013 Penny chews. What the **** do you think? What currency have forbes always ****ing quoted wealth in? I wouldn't mind being that rich in penny chews!!! Link to comment Share on other sites More sharing options...
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