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Financial Results 2016/17

Discussion in 'Leicester City' started by fox58, Mar 2, 2018.

  1. fox58

    fox58 Well-Known Member

  2. pork pie fox

    pork pie fox Well-Known Member

  3. Brown Nose

    Brown Nose Well-Known Member

    I thought I'd wait until the full accounts were published before commenting. Just reading them now.

    For those that wonder what our owners aspirations for the club are, here are some telling comments from Susan Whelan:

    The Champions League experience has 'strengthened the resolve of all involved with the Club to qualify for European Football again'

    'The Club's on pitch performance in the Premier League is currently satisfactory'

    'The directors monitor the performance of both management and players and have a proven record of making changes where required'

    Net spend on players in year ending 31/05/17 was £57.7m

    We made £120.7m from UK TV, £70m from Champions League, and gate receipts only accounted for 7% of our income.

    Staff costs were up to just over £111.5m per year (up from £80.3m). Looks like Susan Whelan's salary hiked up from £158k per year to £325k.

    They valued our squad at £305m.

    King Power do have a mortgage on the stadium. It isn't a club asset. There is £16.6m outstanding on this.
    FryattFox likes this.
  4. Real Sharapova

    Real Sharapova Well-Known Member

    Being an accountant, and a king-sized pedant, one small correction, BN. The stadium and freehold land is owned by the club, it's in the accounts at a value of £39 million. You are right, there is a loan owed to a group company of £16.6 million secured on the property. There are other group borrowings, so the total amount owed by LCFC to group companies is £28.9 million.
    Brown Nose likes this.
  5. Mike - True Blue Tinter

    Mike - True Blue Tinter Well-Known Member

    If the owners wiped out the debt, why would they take a loan on a paid-for stadium?

    Is it a tax dodge or something. They do not appear to need to borrow money with over £200million of income last year.
  6. Lako42

    Lako42 Well-Known Member

    I would imagine it was taken out before last year?
  7. homer

    homer Well-Known Member

    Yet we still charge kids £200/£300 to be a mascot on match day

    fitz likes this.
  8. Lako42

    Lako42 Well-Known Member

    Wow, seriously
  9. Mike - True Blue Tinter

    Mike - True Blue Tinter Well-Known Member

    I thought there were some 'free' community teams mascots places, as well as premium kids of rich parents places?
  10. Brown Nose

    Brown Nose Well-Known Member

    Interesting thanks. So what is the logic of this move for someone that wealthy? Why bother to have loans accruing interest and a debt owed by their company to themselves?
  11. pork pie fox

    pork pie fox Well-Known Member

    Lowers profits, for tax reasons?
  12. Real Sharapova

    Real Sharapova Well-Known Member

    Possibly to shift a bit of income to Thailand, but in the overall scheme of things it's not a great deal. The stadium loan is being repaid, I suppose they might have thought that the interest being charged on that does show a commercial reality. Other than that, I haven't a clue!
  13. Real Sharapova

    Real Sharapova Well-Known Member

    No tax payable for 2016/17 due to losses brought forward. Also, the interest charge, in terms of their other income & expenses, is not that great.
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