Why always loans????

[Jock's Hill]

Despite our desperation to move on a good number of squad players, all we seem to hear is loan, loan, season long loan. 

Now I know we are probably paying these players far too much in wages and have them on long contracts.

But, the deals talked about are Souttar - loan, McAteer - loan, Cannon - loan, Iverson - loan. Kristensen, Soumare and Thomas haven't been talked about so much lately but any deals would be a real bonus to get a fee.

Anyone shed any light on this strategy? Is it just wages?? Iversen could go to Derby for £1.5M, a pittance by today's standards but already it's too much for Derby!!!! 

[Dahnsouff]

We pay too much in wages so people won’t match them

[Finnegan]

There's several reasons but mostly it boils down to fact we over paid for players and gave them too large wages meaning not only can buying clubs not afford to pay the player enough to convince them to leave but it's also sometimes damaging to sell them. 

 

With amortisation, we don't pay the full value of a player up front when we buy him. We spread it out across his contract. 

 

So if we buy someone for 25m on a 5 year contract he actually costs us just 5m every season in the loss column. 

 

However, when we sell him we have to take a hit on his remaining value that same season. So if we sell him after one season, there'll be 20m still left to pay off. Meaning, if we only sell him for 10m because it turns out he's shit, we actually lose 10m this season instead of the 5 we would have. 

 

Plus, loaning clubs tend to cover a lot and sometimes all of their wages and often a fee so it's a way of clawing back a little bit of the value. 

 

We'd obviously much rather sell players for profit, that's the idea, but in cases like Soumaré and Praet where we have these guys for years just loaning them out every season, it's basically cos we pay them so much in wages they don't want to go and we paid too much in transfer fee so we can't make any profit. 

 

[Stadt]

It's a bit of problem with higher wages in England generally but we're bad negotiators. We pay players too much relative to their standing and then they have long contracts meaning the player won't get a better (or even comparable) elsewhere. Then, even if they buying club is incredibly keen, they typically can't afford the wages or the fee because the contract is so expensive and long.

 

Take the Kristiansen signing, we signed him on the 20th of January when we were desperate for a left back (we'd only signed Faes & Smithies in the summer), he was 19 and had only played c. 70 professional games, we paid £17m a new record sale from the Superliga.

 

We get relegated, he goes on loan to Bologna who couldn't afford to buy him, they've only made a handful of £10m+ singings in their history. So they can only afford a loan, probably with us paying a decent % of the wage. 

 

Basically the loans are a better deal for the loaning club in most cases.

 

 

 

Edit: Finngean basically just said that

Edited 29 July by Stadt

[Jock's Hill]

It's sad that some players have no ambition to feel part of a club and just stick around for the money warming the bench.

It's something clubs would do well to address in future.

[DezFox]

The most successful period in our history leads to higher wages. This was then followed by around 3 years of extremely poor recruitment. 

Edited 29 July by DezFox

[StriderHiryu]

9 minutes ago, Dahnsouff said:

We pay too much in wages so people won’t match them

This is why we ended up breaching PSR - wages were 117% (lmao) of actual turnover!

 

I think for our very best players, this is acceptable. But the wages handed out to players that haven't performed yet is too much. E.g. if Ricardo was one of our top earners, fair enough because inuries aside he has shown his quality. Whereas say for Daka / Soumare, though I could understand why we'd give them high wages, it's a risk as they were unknown quantities in the Premier League.

 

Some wages are also just plain stupid. Danny Ward, Ryan Bertrand come to mind. Even now Connor Coady is on ridiculous wedge for hardly any appearances.

[coolhandfox]

Not just a Leicester problem.

 

PL wages are high across the board. 

[Groby_Blue]

27 minutes ago, Jock's Hill said:

It's sad that some players have no ambition to feel part of a club and just stick around for the money warming the bench.

It's something clubs would do well to address in future.

Take Danny Ward. Only really had one crack as a first team regular and it was an utter disaster. 

 

He's reportedly on £50k a week to be third choice keeper and just participate in training. He's never going to get interest from a PL side or any half decent Championship side, so his options are limited to lower Champo sides or the lower leagues. 

 

If anyone down there took a punt on him, he'd be on what, £10k a week at the very maximum, and he might turn out to be just as bad in League One or Two as he was for us, so he ends up back on the bench for £40k a week less. 

 

Would you move?

[Dan LCFC]

4 hours ago, Stadt said:

It's a bit of problem with higher wages in England generally but we're bad negotiators. We pay players too much relative to their standing and then they have long contracts meaning the player won't get a better (or even comparable) elsewhere. Then, even if they buying club is incredibly keen, they typically can't afford the wages or the fee because the contract is so expensive and long.

 

Take the Kristiansen signing, we signed him on the 20th of January when we were desperate for a left back (we'd only signed Faes & Smithies in the summer), he was 19 and had only played c. 70 professional games, we paid £17m a new record sale from the Superliga.

 

We get relegated, he goes on loan to Bologna who couldn't afford to buy him, they've only made a handful of £10m+ singings in their history. So they can only afford a loan, probably with us paying a decent % of the wage. 

 

Basically the loans are a better deal for the loaning club in most cases.

 

 

 

Edit: Finngean basically just said that

I don't want to be too down on Okoli as he's a new signing and a youngish player who may turn out very good, but I think if we were in Atalanta's boat selling the equivalent in that position, we'd be looking at about a third of the fee maximum and that's in the rare instance we actually got a permanent move rather than a loan.

 

Correctly pointed out by you and Finnegan. It's both a Premier League tax, the flip side of having the most resources of any league in the world but within that prism we're bad at negotiating and we've seen it over and over again now.

[Sly]

This isn’t an issue isolated to Leicester. 
 

Look across other fan forums and they’re all bemoaning this. 

[Wink84]

4 hours ago, Finnegan said:

There's several reasons but mostly it boils down to fact we over paid for players and gave them too large wages meaning not only can buying clubs not afford to pay the player enough to convince them to leave but it's also sometimes damaging to sell them. 

 

With amortisation, we don't pay the full value of a player up front when we buy him. We spread it out across his contract. 

 

So if we buy someone for 25m on a 5 year contract he actually costs us just 5m every season in the loss column. 

 

However, when we sell him we have to take a hit on his remaining value that same season. So if we sell him after one season, there'll be 20m still left to pay off. Meaning, if we only sell him for 10m because it turns out he's shit, we actually lose 10m this season instead of the 5 we would have. 

 

Plus, loaning clubs tend to cover a lot and sometimes all of their wages and often a fee so it's a way of clawing back a little bit of the value. 

 

We'd obviously much rather sell players for profit, that's the idea, but in cases like Soumaré and Praet where we have these guys for years just loaning them out every season, it's basically cos we pay them so much in wages they don't want to go and we paid too much in transfer fee so we can't make any profit. 

 

Great explanation 

[roblcfc84]

Thought this thread might be about a new Mario Balotelli t-shirt 

[FoxFossil]

Bench sounds hard with splinters, actually they sit all match in comfy arm chairs  do nothing for their 50k. Bring back the bench!

[st albans fox]

Maffs innit …….

[honeybradger]

4 hours ago, coolhandfox said:

Not just a Leicester problem.

 

PL wages are high across the board. 

We have the highest wages to turnover ratio though.

 

Edit: or we did the last few seasons in the PL at least.

Edited 29 July by honeybradger

[coolhandfox]

4 minutes ago, honeybradger said:

We have the highest wages to turnover ratio though.

 

Edit: or we did the last few seasons in the PL at least.

The point still stands that the issue isn't limited to us.

 

PL clubs pay the best wages, and few clubs outside of Europe elite can match them. 

[lcfc sheff]

Basically we need to stop waving our cock around and be sensible from now on 

[Wasyls Pec Deck]

3 minutes ago, lcfc sheff said:

Basically we need to stop waving our cock around and be sensible from now on 

Maybe we should employ someone who is experienced in financial discipline and budgeting - like that Robert Chode (former IFS and OBR economist).

[em9999]

47 minutes ago, lcfc sheff said:

Basically we need to stop waving our cock around and be sensible from now on 

I'm surprised anyone was strong enough to wave Rudkin in the air 

[sylofox]

The OP answers his own question. Paying to much to average at best players.

 

We should be offering smaller wages with higher bonuses. 

 

Make the fvckers earn it.

[CrispinLA in Texas]

Most of the players who come from the European clubs were getting only around 8k a week and when they come here their pay is hiked up to 70k a week average 

[Samilktray]

19 minutes ago, CrispinLA in Texas said:

Most of the players who come from the European clubs were getting only around 8k a week and when they come here their pay is hiked up to 70k a week average 

Where have you pulled the 8k figure from? 

[ronnup]

Because they're all muck that nobody is daft enough to throw a contract at

[CrispinLA in Texas]

1 hour ago, Samilktray said:

Where have you pulled the 8k figure from? 

Sorry 8k was far to high ....Ndidi was only on around equivalent UK pounds 400 aweek in 2016 at Genk around 20k a year

Edited 29 July by CrispinLA in Texas