Our system detected that your browser is blocking advertisements on our site. Please help support FoxesTalk by disabling any kind of ad blocker while browsing this site. Thank you.
Jump to content
Leicester Lass

Owner wipes out debt.

By Leicester Lass, in Leicester City Forum

Recommended Posts

cityfanlee23

cityfanlee23

Posted
Posted

Fantastic news if true.

The owners not only seem to be learning from their mistakes but actually now seem to be going out if their way to rectify them.

Hopefully Mr Pearsons contract will be next.

I agree but we keep on mentioning these "mistakes" they made,

Nobody warned them at the time that Sven would ruin us,

Nobody looked at our first game when we had all those "top quality" players and said "nah they are shit , we're going to lose hundreds of millions and fail to get promotion"

If I back a racehorse and it gets beat, it was not a mistake, it was a gamble that didn't pay off, and I took that gamble with the best intentions, I know what you're saying Matt,

But it wasn't a mistake from them, it was a gamble that they have been prepared to rectify :)

Babylon

Babylon

Posted
Posted

We can now spend up to £5m this season so some handy additions in January and we are good to get automatic promotion Up the City!

Deluded much!
sylofox

sylofox

Posted
Posted

Even before this, any potential new owner would have known about the debt, and would have only bought the club if they could afford the repayments (and of course the cost of the club would have been substantially lower due to the debt anyway), unless the potential new owners were complete chumps, which may well have happened, but you could have hardly blamed the current owners for the incompetence of future owners.

As for pumping new money in now etc. It isn't going to happen. We're still bound by FFP regs so this conversion of debt to equity does nothing to improve our current spending power (on the playing squad ar least).

Really like I said the pompei model sold 3 times twice to owners that could not afford it.

And before you start they had made millions in business so were not so stupid.

 

But the debts were tied up so not to be seen.

And yes we can spend debts wiped out so we did not make a loss.

also not making a loss to this point in time.

Monk

Monk

Posted
Posted

This is fantastic news and reduces the risk associated with the finances of the club massively - though make no mistake this is a sound business decision for the Thais. As owners of the club they will of course be able to take dividends from LCFC if and when they make a profit - and with no debt to service they are likely to profit much sooner.

 

This means that if the club is promoted, they will be able to claw back at least some of their investment via dividends, and of course the debt free club is then worth more on the open market than a debt ridden one.

 

So - my two cents, it doesn't necessarily mean that they are in it for the long run, and it's not some kind of gesture out of their back pocket. They will make more money out of this than they would have leaving the money as debt - but overall it works out better for both the club and the owners. 

 

:pearson:

Monk

Monk

Posted
Posted

 

 

Could it be that our owners have found a sneaky way round the FFP rules?

 

Yes, looks like it.

Dan

Dan

Posted
Posted

They're doing everything they can to defy the clueless foreign owner stereotype. In a month where the likes of Allam and Tan are being made to look serious twats - ours have gone and done this. Excellent stuff from them. Well played Top/Vichai.

Deucalion

Deucalion

Posted
Posted

Is the implication for FFP more money freed up due to debt repayments (whether currently being paid or not) no longer appearing on our balance sheet?

Dan

Dan

Posted
Posted

Would like to see it from an official source, but I wouldn't be surprised if this was true. They did afterall tell everybody this was what they were going to do a few months back.

The owners have come in for some completely unwarranted stick about their financial dealings here in the past, and some slightly more warranted stick for taking Mandaric's advice on Sousa and Sven.

But while some people have taken every and any scrap of an opportunity to take a pot shot at them (usually based on pure ignorance), they've done nothing but quietly strive towards achieving honest success at this club, going about their business with impeccable class and dignity. They are superb owners, and it's about time they got some recognition.

 

Hold my hands up here.

Grewks

Grewks

Posted
Posted

The main reason people have doubted the owners is because their lack of voice.

 

 

Even within this situation, it would have been nice to see an article with the owners declaring it themselves, and actually taking credit for it.

 

 

But i for one am glad that theyre not interfering as much as they used to. e.g. the signing of Yuki Abe.

The Doctor

The Doctor

Posted
Posted

Deluded much!

 

Not really - it's unlikely we'll actually spend but he is right in that there is 5m we could now spend without it appearing as a loss on FFP sheets with that cushion.

katieakita

katieakita

Posted
Posted

 

The number 9 is said to bring prosperity in Thailand. So, on Boxing Day, we should applaud the Srivaddhanaprabha family in the 9th... (1/2)

 

...minute of the game to show our gratitude for the clearance of our club's debts. RT to spread the idea. (2/2) #LCFC

 

 

Great idea, we are lucky to have them.

Johnny Cash

Johnny Cash

Posted
Posted

Personally, I have never slated the owners, they have been great for us.

 

In hindsight the spending under Sven was excessive but at the the it was fun, admit it, we were riding a wave and had a good time. The spending stopped but with the help of Pearson we still have a highly competitive squad. We had fun, it cost us a season or two in this league but we're on the up.

 

The owners will have done this with their business heads on but it has benefited us too, win/win scenario.

 

I hope it is no coincidence that they have done this just before January, we don't need to spend 'big'; we just need one or two additions.

 

Those speculating what amounts we have to spend and what this means are as clueless as the next poster so stop.

marbelladave

marbelladave

Posted
Posted

This is interesting.

 

With the loans transferred to equity it means, in effect, that the owners own 100% of the club and paid in the region of £150m for the privilege, which is a hell of a lot of money for a club that is still losing money.......

 

I would suggest that, even debt free, this is two, maybe three times what the club is worth at the current time.

 

That is one hell of a business plan........ :whistle:

Deucalion

Deucalion

Posted
Posted

This is interesting.

 

With the loans transferred to equity it means, in effect, that the owners own 100% of the club and paid in the region of £150m for the privilege, which is a hell of a lot of money for a club that is still losing money.......

 

I would suggest that, even debt free, this is two, maybe three times what the club is worth at the current time.

 

That is one hell of a business plan........ :whistle:

 

Either they intend selling the club when it has grown to be genuinely worth more than £150 million, which means unprecedented success for LCFC, or they are less concerned with the potential selling price and think the outlay is worth it in terms of increasing sales of their main product in the Far East and advertising.

 

Both things rely on Premier League football.

cityfanlee23

cityfanlee23

Posted
Posted

Either they intend selling the club when it has grown to be genuinely worth more than £150 million, which means unprecedented success for LCFC, or they are less concerned with the potential selling price and think the outlay is worth it in terms of increasing sales of their main product in the Far East and advertising.

Both things rely on Premier League football.

Promotion would give them their money back....

90m promotion prize...

140m tv revenues

If they wanted to take the profits they could

Strokes

Strokes

Posted
Posted

Promotion would give them their money back....

90m promotion prize...

140m tv revenues

If they wanted to take the profits they could

You don't get a £90 prize, come on. They say its worth £90m because of the tv revenue.
MooseBreath

MooseBreath

Posted
Posted

Either they intend selling the club when it has grown to be genuinely worth more than £150 million, which means unprecedented success for LCFC, or they are less concerned with the potential selling price and think the outlay is worth it in terms of increasing sales of their main product in the Far East and advertising.

Both things rely on Premier League football.

Yes, it's difficult to see a realistic scenario in which the owners would make a direct profit from here. To do it quickly we'd need to get to the premier league and stay there for probably at least a couple of years without having spent much money on new players. A big ask. Or else we could become an established premier league outfit over several years having spent a moderate amount of money on players. Also a big ask.

It seems much more likely to me that the owners see the main value in this investment as indirect through marketing, increased status and what have you. It's impossible to quantify how much value it adds, only the owners themselves know how much they think it is worth.

The third possibility is that the club is just a toy, and they've set aside a certain amount of money which they're prepared to lose. I guess it's the kind of thing that passes for fun if you're a billionaire.

Archived

This topic is now archived and is closed to further replies.

Go to topic listing

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...