I've just got off the phone from somebody at Deloitte (a genuine LCFC supporter) who was involved in the Administration process. We discussed some points that include:
As part of the deal reached with Teachers (the then providers of the Capital to build the Walkers) was that rather then own the stadium freehold and pay set mortgage amounts, we would return ownership to Teachers and rent the stadium. As part of the deal, New Fox (the company created to run the club out of Administration) negotiated a deal that we would pay rent based on our league status ie. Premiership £Xk pa, Championship £Xk pa (discounted) etc.
Now my key assumption is that current deals (including CL et al) held with players are that they are not staggered to reflect league status.
So the point I'm making is that either we:
Reduce the squad further next season - provided we can find somebody to take the likes of some of our worse performing players,
We re-negotiate deals (unlikely as they are protected by law and various league by-laws),
Cut admin costs further from running the Club (unlikely to make substantial savings here in the grand scale of things),
Increase revenue from non-football activity (ie. increase utilization of Stadium facilities) this is a major concern for the club, I thought this is reflected at the club shop (Adult Home shirt less then £20??) I remember a fox leisure shirt costing close to £40 in the early 90s - a matter of supply and demand and the urgency of cash flow being released from cash tied up in stock.
Increase revenue from from non-football activity - I know current utilization is down (take a look around the stadium and note the number of corp boxes empty) this is a situation continuing to be experienced given the opening of the Peepul centre and the Marriott opening its doors in the Spring.
We are unlikely to see the generosity of the PayMaster General in deferring out tax bill as we saw last time.
The reduction in our rent from the Championship to the 1st division is minimal.
The original business plan accepted by Nick Dargon and the
then Creditors was prepared with assumptions of attendance being way in the 20k+ where-upon the current trend is downward from those numbers.
I'm not intending to scare monger but want to ensure that as many people as possible understand our possible plight. I don't think the situation is likely to end in administration but it does show that the Board have decided to gamble big style by not curtailing CL's spending in January.
I also want to comment on this thing about not affording to pay CL off. Often deals can take years between clubs and ex-managers (I recall David O'Leary and Leeds went on for years), I think that LCFC have a case for non-performance or at least enough material to keep things going for a while.
As part of the deal reached with Teachers (the then providers of the Capital to build the Walkers) was that rather then own the stadium freehold and pay set mortgage amounts, we would return ownership to Teachers and rent the stadium. As part of the deal, New Fox (the company created to run the club out of Administration) negotiated a deal that we would pay rent based on our league status ie. Premiership £Xk pa, Championship £Xk pa (discounted) etc.
Now my key assumption is that current deals (including CL et al) held with players are that they are not staggered to reflect league status.
So the point I'm making is that either we:
Reduce the squad further next season - provided we can find somebody to take the likes of some of our worse performing players,
We re-negotiate deals (unlikely as they are protected by law and various league by-laws),
Cut admin costs further from running the Club (unlikely to make substantial savings here in the grand scale of things),
Increase revenue from non-football activity (ie. increase utilization of Stadium facilities) this is a major concern for the club, I thought this is reflected at the club shop (Adult Home shirt less then £20??) I remember a fox leisure shirt costing close to £40 in the early 90s - a matter of supply and demand and the urgency of cash flow being released from cash tied up in stock.
Increase revenue from from non-football activity - I know current utilization is down (take a look around the stadium and note the number of corp boxes empty) this is a situation continuing to be experienced given the opening of the Peepul centre and the Marriott opening its doors in the Spring.
We are unlikely to see the generosity of the PayMaster General in deferring out tax bill as we saw last time.
The reduction in our rent from the Championship to the 1st division is minimal.
The original business plan accepted by Nick Dargon and the
then Creditors was prepared with assumptions of attendance being way in the 20k+ where-upon the current trend is downward from those numbers.
I'm not intending to scare monger but want to ensure that as many people as possible understand our possible plight. I don't think the situation is likely to end in administration but it does show that the Board have decided to gamble big style by not curtailing CL's spending in January.
I also want to comment on this thing about not affording to pay CL off. Often deals can take years between clubs and ex-managers (I recall David O'Leary and Leeds went on for years), I think that LCFC have a case for non-performance or at least enough material to keep things going for a while.
