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davieG

The "do they mean us?" thread pt 3

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Guest ttfn
On 01/06/2022 at 09:43, ttfn said:

90%+ of top-flight clubs will be in that position I’d have thought, certainly not just 4.

 

One thing I would say is that our accounts are a year out of date now and Deloitte may have more up-to-date information than we do, that said the only way we could be debt free is if King Power have foregone the loan we already owe them at 31 May 2021, paid off the MacQuarie loan and then foregone that too. The club does not generate enough cash to pay off £200m+ of debt in a year (especially given we sold nobody for big money last summer and spent £60m+) so it doesn’t add up from what I can see unless KP have converted debt to equity which I think is probably pretty unlikely in the middle of a pandemic. Also when they’ve done it in the past they publicised it, and that was about £100m. This is £200m+, there’s no way they would have done that and not told the press, it’s a PR open goal.
 

I would be very surprised if that “stat” was right but also very surprised if Deloitte published it if it wasn’t right - so who knows what to think!

This is a good thread but you need 10 minutes to read it. Still no idea where the £nil figure comes from for us but Swiss Ramble doesn’t attempt to answer that question.

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4 hours ago, ttfn said:

This is a good thread but you need 10 minutes to read it. Still no idea where the £nil figure comes from for us but Swiss Ramble doesn’t attempt to answer that question.

We have the second-highest short-term (payable within 12 months) debt in England, at £134M, only £1M less than MUFC. It's the 5th highest in the world.

 

Covid's impact is clear from the graph showing debt movement since the pandemic - we're the 4th highest after Real, Spurs and Barca, with a debt increase of £163M. Over half of that is accounted for by Seagrave.

 

If we are planning on buying 5-6 players this summer, we're going to have to raise money from sales to do that, or be creative in the accounting treatment of our payments, or a mix of the two... 

Edited by Steve Earle
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41 minutes ago, Steve Earle said:

We have the second-highest short-term (payable within 12 months) debt in England, at £134M, only £1M less than MUFC. It's the 5th highest in the world.

 

Covid's impact is clear from the graph showing debt movement since the pandemic - we're the 4th highest after Real, Spurs and Barca, with a debt increase of £163M. over half of that is accounted for by Seagrave.

 

If we are planning on buying 5-6 players this summer, we're going to have to raise money from sales to do that, or be creative in the accounting treatment of our payments, or a mix of the two... 

Equally the majority is owner debt rather than banking debt. Therefore zero interest and potentially may get ‘signed off’. 

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Guest Chocolate Teapot
43 minutes ago, Steve Earle said:

We have the second-highest short-term (payable within 12 months) debt in England, at £134M, only £1M less than MUFC. It's the 5th highest in the world.

 

Covid's impact is clear from the graph showing debt movement since the pandemic - we're the 4th highest after Real, Spurs and Barca, with a debt increase of £163M. over half of that is accounted for by Seagrave.

 

If we are planning on buying 5-6 players this summer, we're going to have to raise money from sales to do that, or be creative in the accounting treatment of our payments, or a mix of the two... 

Its. To. The. Owner. He'll. Just. Write. It. Off.

 

People getting their head in a flap about owner debt about 100m really need to have a look at it. It's about as much as a monthly credit card bill to top.

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57 minutes ago, Chocolate Teapot said:

Its. To. The. Owner. He'll. Just. Write. It. Off.

 

People getting their head in a flap about owner debt about 100m really need to have a look at it. It's about as much as a monthly credit card bill to top.

No-one’s flapping Teapot. 
 

But debt is a reality. Ask Chelsea. 

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Assuming all true about the debt above why would the owners write it off ?

 

They obviously care about the club and or consider it as a status investment but 

1) They have business heads too and these are hard times

2) Until what point do they allocate part of their philanthropic activities to LCFC over actual real poverty? 

 

Or can any anyone out there in Forumland propose a long term financial or social benefit in them doing so?

Edited by He aint bald
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Guest Chocolate Teapot
4 minutes ago, Steve Earle said:

No-one’s flapping Teapot. 
 

But debt is a reality. Ask Chelsea. 

Yes that's really affected their takeover hasn't it.. .

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57 minutes ago, Webbo said:

Debt to the owner or the owners company is not necessarily interest free 

It almost certainly wont be, as it is a very simple way of taking some profit back to Thailand should that be part of their planning.

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Guest Chocolate Teapot
1 minute ago, He aint bald said:

Assuming all true about the debt above why would the owners write it off ?

 

They obviously care about the club and or consider it as a status investment but 

1) They have business heads too and these are hard times

2) Until what point do they allocate part their philanthropic activities to LCFC over actual real poverty? 

 

Or can any anyone out there in Forumland propose a long term financial or social benefit in them doing so?

Because there's three specific examples in that thread of the Swiss ramble of it being written off.

 

Worry about the macquarie debt, don't worry about the top debt, he's just moving money round his businesses.

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Guest Chocolate Teapot
Just now, Jon the Hat said:

It almost certainly wont be, as it is a very simple way of taking some profit back to Thailand should that be part of their planning.

Which there's no suggestion of.

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59 minutes ago, Webbo said:

Debt to the owner or the owners company is not necessarily interest free 

 

1 minute ago, Jon the Hat said:

It almost certainly wont be, as it is a very simple way of taking some profit back to Thailand should that be part of their planning.

Financial history with King Power and LCFC tells us its very likely to be interest zero. Upon promotion to the PL, they wrote off a significant amount of debt written to them. 

 

To aside it used to be way more the case that charging interest on a loan was the way that owners would get some of the investment back (Hello, Meelan Mandaric). However, in the world of the Premier League, I think most owners know they can find a buyer pretty damn easy and make a significant profit if they'd like. 

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26 minutes ago, Steve Earle said:

No-one’s flapping Teapot. 
 

But debt is a reality. Ask Chelsea. 

The same debt that brought them two Champions Leagues and multiple league titles? If that's the price you pay for being in debt than we are slacking. 

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10 minutes ago, Chocolate Teapot said:

Because there's three specific examples in that thread of the Swiss ramble of it being written off.

 

Worry about the macquarie debt, don't worry about the top debt, he's just moving money round his businesses.

My pants are more in a twist about paying internet and buying the sugar for replenishing my homebrew wine, required to read Foxestalk, no time for Swiss rambles today

 

That said,  precedent does not always equate to future actions, no big jar of coins for the step daughters birthday this year, shes getting low alcohol wine  and a packet of soggy cigars

 

 

 

 

 

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