Bbc

[alex]

Homer, are you actually Paxman in disguise?

 

[Real Sharapova]

Where are Mandaric's millions-has he really got them or has he just got an effective PR machine?

I believe the latter, as I have intimated from day one, and I have heard or seen nothing to make me change my mind.

 

[drew]

Have you read anything on this matter?

 

[Real Sharapova]

The bid for shares was always around this figure (although now presumably a little lower due to what was discovered under Due Diligence)

The £25million figure is purely the Mercury's interpretation of the deal being £6million for shares, £16million for the ground and £3million for players. It is just a creative way of describing what the burden would be (be it by a straightforward share purchase, and the restructuring of other finances through loans etc.)

In reality Mandaric has never offered that amount of money, and the shareholders have been fully aware of that from the start

As far as I am aware he is not, and never was going to buy the ground. He will either take over the Teacher's loan ( and some rumours have stated his new bid will still insist that the old regime still guarantee it ) or he will replace it with a loan from someone else, quite possibly at a higher rate of interest.

 

[Real Sharapova]

Have you read anything on this matter?

In the main the puff put out by the Mockery, which IMO raises more questions than it answers.

 

[blue]

I have some concerns with James Johnson resigning from the board. This guy was instrumental in saving the Club from being wound-up. It was him who threw the resources of CC in negotiating and drawing up the deal with Teachers - in the process he wrote off many thousands of pounds of man hours and legal fees, cash that New Fox clearly did not have in doing the deal - as well as stoping up hard cash to support Holmes and gang. This guy is a standup sort of bloke, he never took up any priviledges of directorship and continued to pay for his season ticket in the east stand. He must have taken exception to the MM deal in a big way for him to have taken the stance that he has - I guess we'll not know until the details of the deal come into the public domain, leaked or otherwise!

 

[Real Sharapova]

I have some concerns with James Johnson resigning from the board. This guy was instrumental in saving the Club from being wound-up. It was him who threw the resources of CC in negotiating and drawing up the deal with Teachers - in the process he wrote off many thousands of pounds of man hours and legal fees, cash that New Fox clearly did not have in doing the deal - as well as stoping up hard cash to support Holmes and gang. This guy is a standup sort of bloke, he never took up any priviledges of directorship and continued to pay for his season ticket in the east stand. He must have taken exception to the MM deal in a big way for him to have taken the stance that he has - I guess we'll not know until the details of the deal come into the public domain, leaked or otherwise!

As I have said before, I find this very worrying.

 

[norman leet]

As far as I am aware he is not, and never was going to buy the ground. He will either take over the Teacher's loan ( and some rumours have stated his new bid will still insist that the old regime still guarantee it ) or he will replace it with a loan from someone else, quite possibly at a higher rate of interest.

I would think that him buying the club he takes on all the liabilities.

Personally I think the ownership or loan for the stadium is fairly low down the list of what the fans should be concerned about.

Admittedly its a bit of a noose around the clubs neck, but i'm sure he has done his homework

I think the city/ county council have missed an opportunity, rent the club back to the club, use it for gigs (after changes to the structure), dare i say it, tigers for big games etc the cost of the stadium is a splash in the ocean, couple of weeks of new parking fines!!

 

[Real Sharapova]

I would think that him buying the club he takes on all the liabilities.

Personally I think the ownership or loan for the stadium is fairly low down the list of what the fans should be concerned about.

Admittedly its a bit of a noose around the clubs neck, but i'm sure he has done his homework

I think the city/ county council have missed an opportunity, rent the club back to the club, use it for gigs (after changes to the structure), dare i say it, tigers for big games etc the cost of the stadium is a splash in the ocean, couple of weeks of new parking fines!!

I should think the City Council have got better uses for the £30 odd million they might need to spend to purchase the ground.

 

[Babylon]

I should think the City Council have got better uses for the £30 odd million they might need to spend to purchase the ground.

£16m is it not.

Would never happen in a million years anyway.

 

[Real Sharapova]

£16m is it not.

Would never happen in a million years anyway.

The loan is circa £16 million - it cost circa £32 million to build.

 

[Babylon]

The loan is circa £16 million - it cost circa £32 million to build.

I know... I thought he meant they should take the stadium off our hands now.

 

[1966]

I would think that him buying the club he takes on all the liabilities.

No, MM has made sure his bid gaurantees that he cannot be held be responsible for any liabilities the club has. On future spending . investment he is also not expected to spend any of his own money, preferring the club to take on and gaurantee the extra debt.

The only finance he stands to lose if all goes pear shaped is his original investment, the £1/2m he will spend buying the shares.

 

[OldGit]

I would think that him buying the club he takes on all the liabilities.

No - the company retains the liabilities (or if a new company is set up it takes them on). He would not be personally responsible for them. If things go wrong the company goes bust, but he would be relatively unscathed.

 

[Real Sharapova]

No, MM has made sure his bid gaurantees that he cannot be held be responsible for any liabilities the club has. On future spending . investment he is also not expected to spend any of his own money, preferring the club to take on and gaurantee the extra debt.

The only finance he stands to lose if all goes pear shaped is his original investment, the £1/2m he will spend buying the shares.

If that is the case, I am amazed the ( remaining ) board are in favour of MM's proposals. Presumably the backlash that they would encounter if they told him to go away ( built up in the main by MM having the Mockery in his back pocket ) is influencing their decision. Not good IMO.

 

[norman leet]

I should think the City Council have got better uses for the £30 odd million they might need to spend to purchase the ground.

Mandaric will not be either paying that or taking on that amount of debt, so in theory he's getting 30mil stadium for 16mil

The council used to own Welford Road, Grace Rd and I believe Filbert St and loaned them back to the clubs

Sold them to the clubs for next to nothing.

It obviously won't happen, but obviously Teachers and or MM wil be making on it, seems prudent to think that interest made should stay in the city (yes, for the Council to waste) rather than go to America / Serbia.

Also the Council need to secure the club (if it ever came to it) as a service to the Leicester public

Similar, the Derbyshire police were owed so much by the club that they considered stopping policing games, they would'nt be allowed to play ..or..sending the club into administration

Both were seen as possibly negative PR excersises !!!

 

[1966]

If that is the case, I am amazed the ( remaining ) board are in favour of MM's proposals. Presumably the backlash that they would encounter if they told him to go away ( built up in the main by MM having the Mockery in his back pocket ) is influencing their decision. Not good IMO.

I think many of the existing shareholders are desperate to get out of the club and will take almost any deal.

 

[norman leet]

No - the company retains the liabilities (or if a new company is set up it takes them on). He would not be personally responsible for them. If things go wrong the company goes bust, but he would be relatively unscathed.

Ta for that, interesting.
I don't think i'm alone in assuming that.

Not a bad wager, 2ish mil

Spend the 'Companies' money/dept gambling to get in the prem.

Succeed = utopia, were happy, he stays and milks the club or sells

Fail= Fecks off, looses his 2mil punt and nicks all the silver out the trophy cabinet + were skint less 10 points

Worrying

 

[drew]

I think many of the existing shareholders are desperate to get out of the club and will take almost any deal.

Rats sinking ship, which begs the question how are they any different to MM?

 

[Hammond Organ]

Essentially the club is between a rock and a hard place at the moment. The structure of the current shareholder alliance doesn't allow for one person to own the club, unless a deal is brokered a la MM where one person hoovers up the remaining shares.

Obviously, none of the current wealthy people on the board feel we are a viable option to take on, so we are open to this kind of bid. Worrying though the lack of guarantees are, I can imagine that the board have no other options open to them to give the club a chance/some kind of money back for investment for shareholders.

There was talk of DD being done before MM started his process, perhaps whoever did this saw the same figures MM did and decided that we were not worth the effort (Complete conjecture from me I know...).

At the moment, we are on one road and that is down. We have no money for players and not much option to change the managerial staff without further investment too. Eventually this may lead to relegation and administration, as the turgid performances of the team would point to a lack of heart, fight and maybe even ability too. The inability of the management to arrest this slide would show that the management also may be lacking in the ability to turn this around also. But with RK on a 12 month rolling contract, and without knowing the details of the contents of that contract, I would imagine this to mean that compo on this would be 12 months salary at any given time when employment ceases. Again, not a viable option for the club when they do not have 2 brass farthings to rub together.

What other options are open to us right now? We may have no chooice to gamble to take the club forward...