£6m loss 2008/09 season

[spionfox]

If we drop out of the top 2 next season, I'm counting on the other clubs that will have points deductions from keeping us from a relegation scrap.

There's a long way from outside the top two to bottom three.

 

[Dour]

There's a long way from outside the top two to bottom three.

I wasn't clear. I reckon administration is a serious concern if the results don't go well early on...

 

[Real Sharapova]

I wasn't clear. I reckon administration is a serious concern if the results don't go well early on...

Realistically the only person in a position to put us in administration is Milan I would have thought. Can't see him gaining from that TBH.

 

[FryattFox]

Realistically the only person in a position to put us in administration is Milan I would have thought. Can't see him gaining from that TBH.

Not in the next couple of years, but surely at some point down the line if we don't go up he'll either have to slash costs to make the Championship sustainable (unlikely), find someone else to take over the club (unlikely as we'll be in a similar position to everyone else in the league) or get out. It's the latter option that could leave us in trouble.

But who cares atm; it's all part of the excitement of football...

 

[fitz]

Not in the next couple of years, but surely at some point down the line if we don't go up he'll either have to slash costs to make the Championship sustainable (unlikely), find someone else to take over the club (unlikely as we'll be in a similar position to everyone else in the league) or get out. It's the latter option that could leave us in trouble.

But who cares atm; it's all part of the excitement of football...

For us to be sustainable we'd probably have to operate with a pretty shite squad, which could lead to relegation again. Football is turning into a farce, we can attempt to live the dream but it may never pay off

 

[tedfoxxx]

View attachment 5761

Simples.

Mmmmmm turnover..... *Drools*



But does our club have a core of molten Bramley apple?

 

[LoopisDeLupis]

Am I correct in saying that Milan came out and publicly stated he'd already financed the 6mil from his own pocket?

So... Where's the panic? As mention before, he's not got much to gain from administration... and he'll have given Nigel budget he believes is sustainable for the year at least, surely. It's just bad finance management not to- and you wouldn't expect a person who's made so much through business to possess that trait.

 

[FryattFox]

Am I correct in saying that Milan came out and publicly stated he'd already financed the 6mil from his own pocket?

So... Where's the panic? As mention before, he's not got much to gain from administration... and he'll have given Nigel budget he believes is sustainable for the year at least, surely. It's just bad finance management not to- and you wouldn't expect a person who's made so much through business to possess that trait.

Any decisions he makes and made would be based on us getting promoted soon, as that's the only reason he's here and that's how he's hoping to make his money.

Even if we are only stretching our budget a little, it could all be a bit too much a few years down the line. Like most clubs we're very dependent on our owner to meet any deficits, and that won't happen indefinitely.

 

[Miles Away]

So simply put, we are in a similar situation to a LOT of clubs, with the possible exception being we have a chairman currently willing to invest?

 

[Macky]

So simply put, we are in a similar situation to a LOT of clubs, with the possible exception being we have a chairman currently willing to invest?

I would've thought it more like, we have a chairman currently willing to lend money to the club

 

[Foxes_Trust]

I would've thought it more like, we have a chairman currently willing to lend money to the club

That is the correct scenario, so the more loans pumped in, the less attractive it becomes to take over the club, as they need to pay back circa £15m minimum loans to Milan already & that only covers the money to 31/05/09.

 

[RHYDAL]

I would've thought it more like, we have a chairman currently willing to lend money to the club

In the same way Sam Hammam did at Cardiff and Wimbledon. Dangerous.

 

[Chrysalis]

So, in those accounts, debt at £35.5 million. Another £10 million injected by our chairman - so that makes at least £45 million in debt. It's not looking sustainable, despite the kind words of Milan.

you have proof the injection was a loan? you still spouting this stuff even after milan publicly said he is not loaning it to the club.

 

[Dour]

you have proof the injection was a loan? you still spouting this stuff even after milan publicly said he is not loaning it to the club.

Where has he said that, then?

 

[Babylon]

Where has he said that, then?

I couldn't post a link, but I do remember him saying something along those lines.

 

[Dour]

I couldn't post a link, but I do remember him saying something along those lines.

This bit perhaps:

"We have reduced the club's losses and significantly reduced our debt position."

The first was mostly achieved by player sales, the second by a revaluation of the stadium. Actual money owed by the club has gone up.

 

[Boy Genius]

The trouble with you lot is you just like to be nosey! If you are that concerned why don't you give the club a ring and tell them where they are going wrong and to give them a donation instead of moaning the **** all the time.
If the club goes it goes, but as history shows there is always someone there to bail you out, this person will be looking to make money though in the long term. How many of you ***** buy a house and then sell at a loss?

MM has said in the past he is not loaning but unless you have it written in blood you just follow the flock and keep on moaning.

Cardiff are in the shit big time, but I will say there are people monitoring the situation ready to pounce.

I go to watch the ****ing matches not the ****ing balance sheets FFS!

 

[Boy Genius]

This bit perhaps:

"We have reduced the club's losses and significantly reduced our debt position."

The first was mostly achieved by player sales, the second by a revaluation of the stadium. Actual money owed by the club has gone up.

What about this what Milan said not long ago:

" Dour is a right moaning **** and cannot look after his own business so he pokes his nose in mine. The only reason I am putting on weight recently is that his wife gives me a biscuit every time I shag her whilst he is busy looking over LCFCs accounts"

 

[FryattFox]

The trouble with you lot is you just like to be nosey! If you are that concerned why don't you give the club a ring and tell them where they are going wrong and to give them a donation instead of moaning the **** all the time.
If the club goes it goes, but as history shows there is always someone there to bail you out, this person will be looking to make money though in the long term. How many of you ***** buy a house and then sell at a loss?

MM has said in the past he is not loaning but unless you have it written in blood you just follow the flock and keep on moaning.

Cardiff are in the shit big time, but I will say there are people monitoring the situation ready to pounce.

I go to watch the ****ing matches not the ****ing balance sheets FFS!

The financial statements of our club are bound to be of interest to a lot of us. Considering the current climate, and the problems that clubs such as Pompey and Cardiff have faced, it's not surprising fans are taking an interest in the running of their club. The implications of a 10pt penalty could lead us to another relegation to League 1, and the amount of debt that's mounting up could cause problems in the future.

I do agree that there's very little we can do about it, and we're in a much better position with MM that without, but it's definitely relevant and worth discussing (for those that are interested anyway).

 

[Redditch Fox]

Sorry to be ignorant...but where are we leaking money that puts us in the negative so much?

I know the div 1 relegation was damaging, but beyond that where is our money going?

The money is going on paying more to and for players than we can afford on the basis of income - as well as servicing debts etc:

It seems to me that at a simplistic level that there are two broad options for clubs like Leicester whilst in the second tier:

1. A benefactor/ investor pumps in the money beyond the realistic income levels to try and get promotion to the land of milk and honey.

2. The club is run as a tight ship with the risk of stagnation in the second tier at best and relegation to the third tier at worst.

All this is against a background where the Premier League is increasingly seeking to protect existing Premier League clubs with bigger and longer parachute payments to the obvious disadvantage of clubs like ours who are seeking to compete.