Leicester have borrowed from MacQuarie again secured on future TV and KDH money

[BKLFox]

11 hours ago, Clever Fox said:

It seems like we're prepared to build and secure infrastructure financial Assets in the short term,  at the expence of improving the quality of the squad. 

Speculate to accumulate, we need to up our long term revenues and the KP campus plan will do that.

I guess could argue let’s secure a run of seasons back in the premier by strong squad investment, no guarantee mind, but how long do we kick that can down the road,  it’s like the saying “when’s a good time to have a baby”?

At some point we need to start bringing in more to allow growth otherwise we are stuck in a spiral of stick or twists season on season.

 

Then if all goes wrong again in the future at least we will have assets to juggle amongst Leicester City FC and KP although by then the ‘big 6’ would have done that a few times each and just as the rest of us try it the PL/FA will shut the door to it 🙄 

[jonthefox]

1 hour ago, sylofox said:

How much have we actually borrowed?

The balance of the KDH money i think. So £20 million

[Webbo]

The gate receipts in 2022 were 21 million. A 25% increase in capacity will assuming we sell out every week will see roughly a 25% increase in matchday revenue.  Let's say 6 or 7 million pounds. A lot of that money will be needed to service the loan. This isn't going to be the game changer people imagine.

[sulfoxide]

Need to sell club

[KingsX]

FFS.  The Club name an Official Loan Shark, and then just go back to the same old bank.

 

The friendly folks at Lite Finance must be planning an unscheduled "friendly visit" to Seagrave as we speak.

[Clever Fox]

2 hours ago, Gravel said:

Why bother when not selling out games in the current stadium. 

I know a few others have answered your question also.

Because it's the right thing to do I believe, If you have the seats you will draw more people to come. 

But also if there are a lot of empty Seats then the Club are clearly doing something wrong.

 

One of the big problems is the Clubs wait to close to match day to announce general sale tickets. Which means a lot of Fans who live further away or overseas Fans who would like to attend a few games a season cant go because Flights etc are too high at sort notice. They should sell General sale tickets at least in pairs,  as a lot of Fans would like to bring there wife, partner or Children.

 

Really though the ground should never be empty. The Club should be going around schools and colleges giving out cheap or free tickets to encourage them to become future Fans.

It would take a little planning but could be done successfully. 

 

[sylofox]

3 hours ago, jonthefox said:

The balance of the KDH money i think. So £20 million

So it's an operating loan. Nothing to do with transfers or the expansion. We've done this the last 4 or 5 seasons. So say's  to me we are still living beyond our means.

 

We've not bought down wages and owed fee's by enough.

 

If we really want to give money away (intrest) operate within our means and make tickets cheaper. Our owners really need to sell up and fvck off.

[sylofox]

3 hours ago, Webbo said:

The gate receipts in 2022 were 21 million. A 25% increase in capacity will assuming we sell out every week will see roughly a 25% increase in matchday revenue.  Let's say 6 or 7 million pounds. A lot of that money will be needed to service the loan. This isn't going to be the game changer people imagine.

It's not just about match day. It's corporate use 24/7 that the east stand does not have atm. Just as the arena won't be just sports n music if it ever happens.

Edited 9 hours ago by sylofox

[Muzzy_no7]

Club needs selling ASAP

[Pita]

with any luck it’s to get rid of Cooper

[Webbo]

2 hours ago, sylofox said:

It's not just about match day. It's corporate use 24/7 that the east stand does not have atm. Just as the arena won't be just sports n music if it ever happens.

Corporate can use it 24/7 now. 

This isn't the silver bullet that makes us a top team.

[sylofox]

3 minutes ago, Webbo said:

Corporate can use it 24/7 now. 

This isn't the silver bullet that makes us a top team.

Really? What conference rooms are in the east stand? What catering facilities are in the east stand?

 

Care to explain what's in the east stand that I've missed. Do we have stuff in the north n south I've missed.

 

The whole ground/ site needs to be 24/7 7 days a week. Right now only the west stand is.

 

Plymouth have had 3 gigs at Holme park this summer plus other events. What has the KP had? Am guessing fvck all.

 

We have a great venue but do fvck all with it and to promote it.

 

Our clubs run by muppets that don't deserve our support (only the team does).

 

Top fvck off n get real people in to run it and make money from it. Stop borrowing money n paying interest on it. Sell what you have n work savvy.

[Webbo]

1 minute ago, sylofox said:

Really? What conference rooms are in the east stand? What catering facilities are in the east stand?

 

Care to explain what's in the east stand that I've missed. Do we have stuff in the north n south I've missed.

 

The whole ground/ site needs to be 24/7 7 days a week. Right now only the west stand is.

 

Plymouth have had 3 gigs at Holme park this summer plus other events. What has the KP had? Am guessing fvck all.

 

We have a great venue but do fvck all with it and to promote it.

 

Our clubs run by muppets that don't deserve our support (only the team does).

 

Top fvck off n get real people in to run it and make money from it. Stop borrowing money n paying interest on it. Sell what you have n work savvy.

Sorry, I didn't realise business men would only hold meetings if the windows were facing in a certain direction. 

[Globalfox]

This is standard if you look Wolves do the same with the same bank Man Utd do the same with Bank of America. You know why rich people stay rich is the never use their money until they have to. Interest is deductible as a business expense so can be useful to reduce tax. Each business should finance itself once established and that is all that is being done here. At a smaller level it’s called invoice factoring. The way Premier League payments are made hinders cash flow as TV money comes in lumps at the end of a season. These charges give you cash now to pay wages etc. It’s just like your agreed secured overdraft. It’s good business sense. Chill folks.

[sylofox]

25 minutes ago, Webbo said:

Sorry, I didn't realise business men would only hold meetings if the windows were facing in a certain direction. 

I think you've missed my point. The new east stand (if it happens ) incorporates  corporate use. The current east stand offers nothing other than match day use.

 

What conference rooms does it have or catering facilities other than the concourse. I would not feed my cats or a dog from the concourse.

[Webbo]

1 minute ago, sylofox said:

I think you've missed my point. The new east stand (if it happens ) incorporates  corporate use. The current east stand offers nothing other than match day use.

 

What conference rooms does it have or catering facilities other than the concourse. I would not feed my cats or a dog from the concourse.

Let's just say you're right, how much money is this corporate use going to raise?

[sylofox]

34 minutes ago, Webbo said:

Let's just say you're right, how much money is this corporate use going to raise?

I don’t know never hired something like that. But sure beats paying interest on money you borrowed just to pay wages and bills. Piss poor run and will never get out this hole with these idiots.

[Webbo]

1 minute ago, sylofox said:

I don’t know never hired something like that. But sure beats paying interest on money you borrowed just to pay wages and bills. Piss poor run and will never get out this hole with these idiots.

We're going to have to borrow money to build this. Anyway surely that business would go to the hotel they're planning?

 

We were going to be punished for losing 30 million more than we were allowed to. I don't see this extension raising anything like that kind of money. 

[st albans fox]

1 hour ago, Globalfox said:

This is standard if you look Wolves do the same with the same bank Man Utd do the same with Bank of America. You know why rich people stay rich is the never use their money until they have to. Interest is deductible as a business expense so can be useful to reduce tax. Each business should finance itself once established and that is all that is being done here. At a smaller level it’s called invoice factoring. The way Premier League payments are made hinders cash flow as TV money comes in lumps at the end of a season. These charges give you cash now to pay wages etc. It’s just like your agreed secured overdraft. It’s good business sense. Chill folks.

Saved me a post - 👍 

[sylofox]

15 minutes ago, Webbo said:

We're going to have to borrow money to build this. Anyway surely that business would go to the hotel they're planning?

 

We were going to be punished for losing 30 million more than we were allowed to. I don't see this extension raising anything like that kind of money. 

Yes the money will be borrowed for something with an income. Not to just pay running cost's. If the club is saddled with the debt for the whole build ie hotel arena and the flats then the income is the clubs.

 

So infrastructure is not on psr. But the income counts. So then allows us to spend more on transfers. They can then get in a sponsor for the arena like the motorpoint in Nottingham. They should put a casino in as well. Top can go in every so often and drop 10m on a shite black Jack hand. 

 

Jobs a gud n.

[Webbo]

1 minute ago, sylofox said:

Yes the money will be borrowed for something with an income. Not to just pay running cost's. If the club is saddled with the debt for the whole build ie hotel arena and the flats then the income is the clubs.

 

So infrastructure is not on psr. But the income counts. So then allows us to spend more on transfers. They can then get in a sponsor for the arena like the motorpoint in Nottingham. They should put a casino in as well. Top can go in every so often and drop 10m on a shite black Jack hand. 

 

Jobs a gud n.

I really don't get your point, or you don't understand mine. 

We lost far more money  the season before last than this new stand will raise. Spending the money that shouldn't have didn't make us a top team. The 5 or 10 million that this extension may earn isn't going to make a vast improvement to our prospects.

[sylofox]

2 minutes ago, Webbo said:

I really don't get your point, or you don't understand mine. 

We lost far more money  the season before last than this new stand will raise. Spending the money that shouldn't have didn't make us a top team. The 5 or 10 million that this extension may earn isn't going to make a vast improvement to our prospects.

The spend is spread over a number of years and don't go against psr. The income is yearly and adds to what we can spend on psr.

 

No it won't make a profit for 10yrs but no new build does in any business. But the turnover profit will be a plus on the clubs figures for psr.

 

Car park 500 cars limited cost 90% profit

Hotel 50% profit (obviously when full)

Arena depends on events/gigs 5/10m a year possible.

Flats 2/3m possible a year.

Arena sponsorship 1or 2m a year

8k seats 4 or 5m a year then 2m corporate in the stand.

 

So not huge but probably 20m a year for our psr spend.

[Globalfox]

2 hours ago, sylofox said:

The spend is spread over a number of years and don't go against psr. The income is yearly and adds to what we can spend on psr.

 

No it won't make a profit for 10yrs but no new build does in any business. But the turnover profit will be a plus on the clubs figures for psr.

 

Car park 500 cars limited cost 90% profit

Hotel 50% profit (obviously when full)

Arena depends on events/gigs 5/10m a year possible.

Flats 2/3m possible a year.

Arena sponsorship 1or 2m a year

8k seats 4 or 5m a year then 2m corporate in the stand.

 

So not huge but probably 20m a year for our psr spend.

Sorry to say your math forgets increased costs you are only talking income. We cannot sell out current corporate so very optimistic to get 2m new, after costs even if you sold all seats probably 1.5m at very best, arena have big doubts it’s too small and needs an anchor tenant I cannot see. A hotel making a 50% profit that is way too optimistic more like 15-20%. Apartments sell or rent? Sales one off margin, rental 13% yield. Car park will be even at best remember it will only be full maybe 200 hours a year. You build the outlay to get this done and it’s a bad investment with too much risk.