WhatsHisName Posted 3 June 2014 Posted 3 June 2014 . ''City's owners are estimated to have spent more than £150million since taking over the club from Milan Mandaric in 2010,''http://www.leicestermercury.co.uk/Leicester-City-owners-know-money-does-guarantee/story-21179371-detail/story.html That is a huge sum of money.
Finn Claw II Posted 3 June 2014 Posted 3 June 2014 Given Fulham and Villa sold or are about to be sold for c. £200m they have probably broke even at this point. Establish us as a mid-table team without going crazy and they might even make money!
leicesterseddon Posted 3 June 2014 Posted 3 June 2014 . ''City's owners are estimated to have spent more than £150million since taking over the club from Milan Mandaric in 2010,''http://www.leicestermercury.co.uk/Leicester-City-owners-know-money-does-guarantee/story-21179371-detail/story.html That is a huge sum of money. Indeed. But what do we actually mean when we say they've 'spent' that amount of money? The article seems to imply that this is money they've forked out and are never going to see again, which is ludicrous. No businessman would ever do that. Most of that sum is accounted for by the equity they have acquired in the club, an asset which they now almost completely own and could sell at some stage to recoup their investment. They have also helped themselves to millions of pounds' worth in advertising space with the stadium name, shirt sponsorship and on billboards inside and outside the ground. It's probable that so far they have lost out on what they have put in, but this will change next season. No one should be under the impression that they have just given us a load of their own money because they love us so much - it just isn't true.
surrifox Posted 3 June 2014 Posted 3 June 2014 Exactly- they are not fools and the appetite for investment in English prem clubs shows no signs of diminishing. when they took over I recall a report stating that part of their vision/ business plan was the development of player value. this is an area that has not really come to fruition - NP used to speak often about increasing the value of the playing squad (getting rid of Svens rubbish and acquiring some players that might have some resale value) but we have never really got close to the sort of riches that Southampton have earned with their players
Freeman's Wharfer Posted 3 June 2014 Posted 3 June 2014 Indeed. But what do we actually mean when we say they've 'spent' that amount of money? The article seems to imply that this is money they've forked out and are never going to see again, which is ludicrous. No businessman would ever do that. Most of that sum is accounted for by the equity they have acquired in the club, an asset which they now almost completely own and could sell at some stage to recoup their investment. They have also helped themselves to millions of pounds' worth in advertising space with the stadium name, shirt sponsorship and on billboards inside and outside the ground. It's probable that so far they have lost out on what they have put in, but this will change next season. No one should be under the impression that they have just given us a load of their own money because they love us so much - it just isn't true. B-b-b-b.... but... the first game Top ever went to was the Middlesbrough League Cup Final? And they say that they have fallen in love with the club?! Whilst they have been great owners for us so far, figures like this mean nothing. It's all an investment, one that up until Pearson got us promoted was actually a pretty bad one, but which has now turned good. Even without the promotion, which means they could instantly re-coup what they've paid, £150million for promoting your business across the whole of the UK, raising your profile to open doors with powerful and influential people in a market you're looking to expand your business into and having somewhere to get your money out of Thailand too whilst still having a bit of a hobby, isn't too bad. As previously said though, that £150million doesn't take into account the money that's come into the club since they arrived through various avenues. One of these seems to have been very quickly forgotten: the fact that originally their ownership was part of a consortium putting money into the club. After the first year that (and who may have been involved) was all forgotten about very quickly when it was announced that Top and Vichai had bought out their partners. I personally wonder if now that we're back in The Premiership we might see more investors coming aboard to help Top and Vichai (particularly if they really want to push on to top-five sort of level)....
_Fatboyslow_ Posted 3 June 2014 Posted 3 June 2014 You can be such a bunch of %#$€ at times, I guess they only do the polo for profit and the use of terms like ripping the club of for advertising ! Really. I am sure the TOPPS Tiles deal was a monster!!!! All in all we in a good place and I for one would have no issue with the owners taking some cash out if they want to. And let's face it they have been selling players for fun NOT. Learn to enjoy things and maybe, just maybe it's just a toy to them and there in it for the crack win lose or draw
Guest MattP Posted 3 June 2014 Posted 3 June 2014 Worth every penny for them now when you look at the what the advertising costs would be for a Premiership shirt and stadium.
Jon the Hat Posted 3 June 2014 Posted 3 June 2014 I expect right now they are feeling pretty good about it all. They own the club, the stadium and the premier league revenue stream. Probably about breakeven so far.
MooseBreath Posted 3 June 2014 Posted 3 June 2014 Doubt the club would fetch £150m if they wanted to sell now. Maybe half that. I think we'll end up spending all of the increased revenue so no profit there. The value of the club may well creep up of we become established, but not by a massive amount. Villa are talking about £200m with a substantially larger fan base. They could take some profits if we keep costs down while still staying up, but not many clubs manage that. It's quite difficult to see where they're ever going to make a profit worthy of the amount of risk they've undertaken, so I think to say it was an investment seeking direct profit is probably wrong. There are many much safer investments they could have made.
Freeman's Wharfer Posted 3 June 2014 Posted 3 June 2014 You can be such a bunch of %#$€ at times, I guess they only do the polo for profit and the use of terms like ripping the club of for advertising ! Really. I am sure the TOPPS Tiles deal was a monster!!!! All in all we in a good place and I for one would have no issue with the owners taking some cash out if they want to. And let's face it they have been selling players for fun NOT. Learn to enjoy things and maybe, just maybe it's just a toy to them and there in it for the crack win lose or draw I'm not entirely sure that I understand exactly what you're trying to say but all I'm saying is that I'm happy to maintain a level of realism throughout this period. The owners have been great for Leicester City, they've improved the club and have done it in a respectful way. What I will always maintain is that this relationship is mutually beneficial in the sense that there is a return on investment for them so tag lines like "the owners have spent £150million since they arrived" are not going to 'wow' me or have the effect of endless gratitude towards them from me. Football fans in the UK seem to have this strange obsession with/fantasy of a sugar daddy superfan who pours his endless fortune into the club that he loves. As such, when owners like ours come along they pigeon-hole them into that bracket. They're custodians of the club, so far good ones at that. But that's all they are, here to put some money in, get out what they want and eventually leave. It's the people who can't see that who start singing "we love you Thailand we do" and proposing Thai flags on the kit. Sure £150million being spent is interesting. Look a little deeper before instantly being impressed by that however.
leicesterseddon Posted 3 June 2014 Posted 3 June 2014 You can be such a bunch of %#$€ at times, I guess they only do the polo for profit and the use of terms like ripping the club of for advertising ! Really. I am sure the TOPPS Tiles deal was a monster!!!! All in all we in a good place and I for one would have no issue with the owners taking some cash out if they want to. And let's face it they have been selling players for fun NOT. Learn to enjoy things and maybe, just maybe it's just a toy to them and there in it for the crack win lose or draw I wasn't actually seeking to make a point about whether I think the owners have been 'good' or 'bad' for the club. As it happens, I think their impact has been a good one - but that is beside the point. All I was trying to say was that it is naive to think of this as some sort of expensive hobby for them, in which they will 'spend' money for the sake of it. It's not 'just a toy' to them, as you claim. Their interest in us is purely financial and/or promotional. Not that this is per se a bad thing - at the end of the day, what they want is for the club to make money, which means doing well on the pitch, which is the same thing we want as fans. All I'm calling for is for us to recognise this fact, and not fall into the trap of thinking they are like some kind of fairy godfathers that want to help us all out because they are mega-nice.
leicesterseddon Posted 3 June 2014 Posted 3 June 2014 Doubt the club would fetch £150m if they wanted to sell now. Maybe half that. I think we'll end up spending all of the increased revenue so no profit there. The value of the club may well creep up of we become established, but not by a massive amount. Villa are talking about £200m with a substantially larger fan base. They could take some profits if we keep costs down while still staying up, but not many clubs manage that. It's quite difficult to see where they're ever going to make a profit worthy of the amount of risk they've undertaken, so I think to say it was an investment seeking direct profit is probably wrong. There are many much safer investments they could have made. No it isn't. You're completely forgetting one very important thing - the 'profit' they can acquire as owners of the club doesn't just depend on whether they can sell Leicester City itself for a profit. You have to remember that they are also owners of King Power. The increased publicity and business interest that KP will acquire as a result of us being in the Premier League is also a kind of 'profit' for them, in that their company will do better (presumably) and in time make greater profits for them. That's how they can make money out of us. That's why they bought the club.
Freeman's Wharfer Posted 3 June 2014 Posted 3 June 2014 I wasn't actually seeking to make a point about whether I think the owners have been 'good' or 'bad' for the club. As it happens, I think their impact has been a good one - but that is beside the point. All I was trying to say was that it is naive to think of this as some sort of expensive hobby for them, in which they will 'spend' money for the sake of it. It's not 'just a toy' to them, as you claim. Their interest in us is purely financial and/or promotional. Not that this is per se a bad thing - at the end of the day, what they want is for the club to make money, which means doing well on the pitch, which is the same thing we want as fans. All I'm calling for is for us to recognise this fact, and not fall into the trap of thinking they are like some kind of fairy godfathers that want to help us all out because they are mega-nice. This guy gets it
Happy Fox Posted 3 June 2014 Posted 3 June 2014 A successful Leicester City correlates with a successful King Power investment of players is key, I doubt the King and the Thai people will be enamoured if Leicester City will be in the lower echelons of the prem therefore I suspect that is why they aspire to finish in the Top 6, in the next couple of seasons, exciting times!
PaulW Posted 3 June 2014 Posted 3 June 2014 What a miserable, cynical bunch we get on here! Of course the owner's are running the club as a business, with the hope of a return (at some time) in the future. Get real! I didn't get the impression that Top was bragging, or seeking praise for the investment made in the Club, but merely stating a self evident fact. To anyone unhappy with the current stewardship of the Club, I offer the following words: Cardiff City. Hull City. Leeds United. Aston Villa. Birmingham City. West Brom. Newcastle.....and probably many others that I haven't thought of. I'll settle for what we've got, thanks. One final comment, one of the oldest cliches in football goes, "The only way to come out of owning a football club with a small fortune, is to start with a large fortune."
leicesterseddon Posted 3 June 2014 Posted 3 June 2014 What a miserable, cynical bunch we get on here! Of course the owner's are running the club as a business, with the hope of a return (at some time) in the future. Get real! I didn't get the impression that Top was bragging, or seeking praise for the investment made in the Club, but merely stating a self evident fact. To anyone unhappy with the current stewardship of the Club, I offer the following words: Cardiff City. Hull City. Leeds United. Aston Villa. Birmingham City. West Brom. Newcastle.....and probably many others that I haven't thought of. I'll settle for what we've got, thanks. One final comment, one of the oldest cliches in football goes, "The only way to come out of owning a football club with a small fortune, is to start with a large fortune." Yes, but that cliché may be out of date. That's what people used to think in the 1970s and 1980s, before mass television coverage and expanding markets for the game in Asia. The old models of football ownership have changed quite a bit over the last decade or so, we're only really entering a new era of ownership (of which our owners are examples).
MooseBreath Posted 3 June 2014 Posted 3 June 2014 No it isn't. You're completely forgetting one very important thing - the 'profit' they can acquire as owners of the club doesn't just depend on whether they can sell Leicester City itself for a profit. You have to remember that they are also owners of King Power. The increased publicity and business interest that KP will acquire as a result of us being in the Premier League is also a kind of 'profit' for them, in that their company will do better (presumably) and in time make greater profits for them. That's how they can make money out of us. That's why they bought the club. Yeah I know that. That's why I said "direct profit". Additional profit derived from marketing is indirect. I agree that marketing and probably more importantly increased status in the business community are key drivers. I also think there is an element of 'fun' to it as well. Either way I don't care. As long as their measures of success are aligned with ours then we're good to go.
Freeman's Wharfer Posted 3 June 2014 Posted 3 June 2014 What a miserable, cynical bunch we get on here! Of course the owner's are running the club as a business, with the hope of a return (at some time) in the future. Get real! I didn't get the impression that Top was bragging, or seeking praise for the investment made in the Club, but merely stating a self evident fact. To anyone unhappy with the current stewardship of the Club, I offer the following words: Cardiff City. Hull City. Leeds United. Aston Villa. Birmingham City. West Brom. Newcastle.....and probably many others that I haven't thought of. I'll settle for what we've got, thanks. One final comment, one of the oldest cliches in football goes, "The only way to come out of owning a football club with a small fortune, is to start with a large fortune." You're missing the point. NOBODY is UNHAPPY with the stewardship of the club... That is not what people are saying and you'd be hard pushed to find a Leicester City fan that isn't happy with what the Thai owners have done. What you will find is people that are content but also mindful that there is something in it for the Thai owners. These are the people who won't be shocked/dismayed/appalled/disappointed when the Thais inevitably walk away having achieved whatever it is they set out to achieve here or if they do ever do something that we as a supporter base don't like. They are the people who recognise that the owners are not here for the love of the club and are not here to pump £150million in purely for the love of Leicester City as we might do had we their fortune. To them, £150million spent is nothing to get excited about because it's just business.
WhatsHisName Posted 3 June 2014 Author Posted 3 June 2014 You can be such a bunch of %#$€ at times, I guess they only do the polo for profit and the use of terms like ripping the club of for advertising ! Really. I am sure the TOPPS Tiles deal was a monster!!!! All in all we in a good place and I for one would have no issue with the owners taking some cash out if they want to. And let's face it they have been selling players for fun NOT. Learn to enjoy things and maybe, just maybe it's just a toy to them and there in it for the crack win lose or draw I'm with you there
Corky Posted 3 June 2014 Posted 3 June 2014 What a miserable, cynical bunch we get on here! Of course the owner's are running the club as a business, with the hope of a return (at some time) in the future. Get real! I didn't get the impression that Top was bragging, or seeking praise for the investment made in the Club, but merely stating a self evident fact. To anyone unhappy with the current stewardship of the Club, I offer the following words: Cardiff City. Hull City. Leeds United. Aston Villa. Birmingham City. West Brom. Newcastle.....and probably many others that I haven't thought of. I'll settle for what we've got, thanks. One final comment, one of the oldest cliches in football goes, "The only way to come out of owning a football club with a small fortune, is to start with a large fortune." Hull had the name change fiasco, but the chairman has backed the manager, who has delivered promotion, survival, a cup final and European football. He doesn't seem to really intervere with the football side of things. No idea why West Brom are in that list, they are now an established Premier League club for five seasons after years of yo-yoing and have hardly broken the bank to do so.
Carl the Llama Posted 3 June 2014 Posted 3 June 2014 I don't know why a select few are so worried. Even if you weren't convinced that the Thais are in it for the long term by their investment in infrastructure as well as players, then surely reading that article should tell you how down to earth they are about what it takes to succeed in football, and the important of patience and stability. It's been said before: They've clearly learned the same lesson we all learned from the Sven Era. To top it all off they don't sound like they intend on clowning around like some other owners have in any way whatsoever. Chill out.
foxes_rule1978 Posted 3 June 2014 Posted 3 June 2014 Trust me getting into the prem, pretty much gets a lot of that back, become established and they would be making money...
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