£5M in the red and a loan against the stadium

[SJN-Fox]

Ever thought about going into administration and screwing any and all creditors......

Ever thought about ****ing off and keeping your nose out of things that don't concern you?

 

[FryattFox]

Ever thought about going into administration and screwing any and all creditors......

Using big words that you don't understand?

Administration is a last resort to protect the creditors.

 

[Boy Genius]

The way I read it was the the £17m is the same £17 million we have always owed for the ground.

That was the way I heard it too. We don't own the stadium so we cannot borrow against it.

 

[fitz]

That was the way I heard it too. We don't own the stadium so we cannot borrow against it.

To be honest, the finances don't appear to have changed in a drastic fashion, not in the way we would like but then again we could have cut some losses and stayed in League One - a long term idea that I suspect may have fecked us royally

 

[Hazzman]

what did he say then?

Some'ut about Forest being seconds away from admin until they got dug out of the shit by some fella who now appears to me stopping them from promotion cos he's more bothered about David Pleat's opinion than his manager's. Then there's always Mark Arthur who ****ed Notts Cricket over....in the midst of their board room.

 

[drummindefender]

Some'ut about Forest being seconds away from admin until they got dug out of the shit by some fella who now appears to me stopping them from promotion cos he's more bothered about David Pleat's opinion than his manager's. Then there's always Mark Arthur who ****ed Notts Cricket over....in the midst of their board room.

eh? I was asking what Milan said in his interview!?

 

[Blue Maniac]

eh? I was asking what Milan said in his interview!?

:icon_lol: I wondered what that was all about.

 

[Hazzman]

eh? I was asking what Milan said in his interview!?

I thought you was on about Dickie B's post. :icon_roll

 

[Dour]

Yeah that was it... I've got the downloaded pdf at home somewhere.

A mortgage Barclays holds over the training ground. Might be for the overdraft, might be for a different loan.

 

[consty]

The stadium was originally, for a brief glorious moment only, the property of the club. However it was quickly mortgaged to Teachers to raise money to pay debts and keep the club going.

The terms of this mortage originally are as follows:
£750,000 mortgage/rent per year (use whatever term you prefer) to Teachers whilst in championship
£1.1m if in the premiership.

-The club has an option to pay off the mortage immediately, but I cannot recall how much that would cost
-If it is not paid off via a lump sum, after 20 years of payments the mortage is considered paid off and the stadium reverts to being a freehold asset of LCFC

The source of this info is good - I met Tim Davies when he was in the role that Hoos now occupies initially to complain about the proposed sharing of the ground with the egg chasers but the conversations extended to this topic as well.

I have no idea if the terms explained above have been altered since that meeting.

 

[cleefox]

The stadium was originally, for a brief glorious moment only, the property of the club. However it was quickly mortgaged to Teachers to raise money to pay debts and keep the club going.

The terms of this mortage originally are as follows:
£750,000 mortgage/rent per year (use whatever term you prefer) to Teachers whilst in championship
£1.1m if in the premiership.

-The club has an option to pay off the mortage immediately, but I cannot recall how much that would cost
-If it is not paid off via a lump sum, after 20 years of payments the mortage is considered paid off and the stadium reverts to being a freehold asset of LCFC

The source of this info is good - I met Tim Davies when he was in the role that Hoos now occupies initially to complain about the proposed sharing of the ground with the egg chasers but the conversations extended to this topic as well.

I have no idea if the terms explained above have been altered since that meeting.

Thanks for that Consty.

 

[Dour]

A mortgage Barclays holds over the training ground. Might be for the overdraft, might be for a different loan.

Doh. Just checked. The training groung is Belvoir Drive isn't it - this looks like a charge over a house.

 

[Rich B]

Using big words that you don't understand?

Administration is a last resort to protect the creditors.

Oh deary me. It didn't protect your creditors that got nothing at worst and a minute percentage at best did it.

Administration is a last resort to protect the creditors indeed

 

[bocadillo]

Oh dreary me.

Quite!

 

[Darth Vodka]

Oh deary me. It didn't protect your creditors that got nothing at worst and a minute percentage at best did it.

Administration is a last resort to protect the creditors indeed

the creditors were fecked either way, WE owed them money

administration doesn't *protect* anyone, it just means you get some money instead of promises and then only if you are preferential

what was your point? that we screwed over the creditors?

yeah we did

*shrug*

in other (old) news, a bear sh1ts in a wood

 

[Foxile]

Oh deary me. It didn't protect your creditors that got nothing at worst and a minute percentage at best did it.

Administration is a last resort to protect the creditors indeed

You are Neil Warnock and I claim my £5!

While you're here and not that you 'care' or anything... Administration was to protect the club from the creditors. Who we actually paid back at 90p in the pound... to which they actually all voted for and we paid local companies first).

It was a sorry saga (not that you 'care'). Relegated, paying wages of£16m pa whilst in Div1, New Stadium costs (£27m), collapse of ITV digital, all players up for sale or free transfer, FIFA embargo on transfers, sold Savage, Piper and Marshall, asking players to take a pay cut of 25%, D*nn*s W*s* suing for £2.7m (after he assaulted a team mate and had spent most of the time on the bench anyway).

Trust me, we didn't want administration and the club worked hard to avoid it. I'm sure that if W*s* hadn't made a civil claim we may have made it without administration. However, High Court ruled admin and Deloitte came in; Teachers took the ground we now rent, we restructured players contracts, paid back the creditors and sold all the players we could. Mickey Adams and the remaining squad got us promoted (still with a transfer embargo) and all credit to him and them.

We didn't 'dodge' administration, we went through hell. There was no 10 point deduction malarkey then, in fact a vote of all League clubs (ironically at the Walkers) brought that little penalty in 6 months later. We were the only club to vote against penalising a football club for maladministration.

It's easy to snipe at us but we didn't start the fire. Barnsley and other clubs had failed before us. I'm Leicester through and through and I'm a football fan, it was a very difficult period from both perspectives. We came out of it with pride and honesty.

I'd suggest, before you take the moral high ground, you just think that it could quite easily happen to you and your club; in your shoes and with the current environment I'd be a little more humble and possibly think there but for the grace of God...


...not that you 'care'.

 

[GazLCFC]

You are Neil Warnock and I claim my £5!

While you're here and not that you 'care' or anything... Administration was to protect the club from the creditors. Who we actually paid back at 90p in the pound... to which they actually all voted for and we paid local companies first).

It was a sorry saga (not that you 'care'). Relegated, paying wages of£16m pa whilst in Div1, New Stadium costs (£27m), collapse of ITV digital, all players up for sale or free transfer, FIFA embargo on transfers, sold Savage, Piper and Marshall, asking players to take a pay cut of 25%, D*nn*s W*s* suing for £2.7m (after he assaulted a team mate and had spent most of the time on the bench anyway).

Trust me, we didn't want administration and the club worked hard to avoid it. I'm sure that if W*s* hadn't made a civil claim we may have made it without administration. However, High Court ruled admin and Deloitte came in; Teachers took the ground we now rent, we restructured players contracts, paid back the creditors and sold all the players we could. Mickey Adams and the remaining squad got us promoted (still with a transfer embargo) and all credit to him and them.

We didn't 'dodge' administration, we went through hell. There was no 10 point deduction malarkey then, in fact a vote of all League clubs (ironically at the Walkers) brought that little penalty in 6 months later. We were the only club to vote against penalising a football club for maladministration.

It's easy to snipe at us but we didn't start the fire. Barnsley and other clubs had failed before us. I'm Leicester through and through and I'm a football fan, it was a very difficult period from both perspectives. We came out of it with pride and honesty.

I'd suggest, before you take the moral high ground, you just think that it could quite easily happen to you and your club; in your shoes and with the current environment I'd be a little more humble and possibly think there but for the grace of God...


...not that you 'care'.

Good post Foxile. Everybody (other than City fans) forget that we had the transfer embargo but still managed to go up. Just because we didn't get the 10 point deduction doesn't mean we had it easy.

 

[Foxes_Trust]

The stadium was originally, for a brief glorious moment only, the property of the club. However it was quickly mortgaged to Teachers to raise money to pay debts and keep the club going.

The terms of this mortage originally are as follows:
£750,000 mortgage/rent per year (use whatever term you prefer) to Teachers whilst in championship
£1.1m if in the premiership.

-The club has an option to pay off the mortage immediately, but I cannot recall how much that would cost
-If it is not paid off via a lump sum, after 20 years of payments the mortage is considered paid off and the stadium reverts to being a freehold asset of LCFC

Actually those figures are not correct:
Championship is either £1million or £1.1 million - anyway the interest rate at the time exceeded the payments by £100k per annum, so the debt slowly grows each year in the Championship

However it was £3.25m in the Premiership - which explains why we could quickly own the ground if we had an extended Premiership stay.

There is an option to pay via a lump but the terms are not set in stone, as was discovered when ground sharing with the Tigers was being discussed & Teachers were not flexible on their terms for an early settlement.
20 year term doesn't apply, we were told it could drag on for 50 years if we stayed in the Championship

All the figures above relate to the original deal, we have not had it confirmed whether MM has renegotiated the terms

 

[Boy Genius]

You are Neil Warnock and I claim my £5!

While you're here and not that you 'care' or anything... Administration was to protect the club from the creditors. Who we actually paid back at 90p in the pound... to which they actually all voted for and we paid local companies first).

Who the **** told you that. That is just complete bollocks!

 

[Blue Maniac]

Who the **** told you that. That is just complete bollocks!

:icon_lol: