Leicester feud with Premier League over spending rules could spill into next year

[Feriol]

I'm not proud of the club for breaking the 'spirit' of the rules, but naturally I'm pleased the club has competently used all legal means to defend themselves and avoid the penalty.

As a football fan I'm disappointed with the authorities, with so much money and so much at stake there is no excuse for such a shoddy loophole to be present in the rules. While I disagree with PSR on principle, I expect any rules for a multi billion pound industry to be more robust.

 

[FOX Franks]

I'm not proud of the club for breaking the 'spirit' of the rules, but naturally I'm pleased the club has competently used all legal means to defend themselves and avoid the penalty.

As a football fan I'm disappointed with the authorities, with so much money and so much at stake there is no excuse for such a shoddy loophole to be present in the rules. While I disagree with PSR on principle, I expect any rules for a multi billion pound industry to be more robust.

“The spirit of the rules” being ‘make sure the big boys stay big’?

 

[Feriol]

“The spirit of the rules” being ‘make sure the big boys stay big’?

Exactly, which Is why I disagree with them.

But if we are going to have the rule, I expect an organisation like the premier league to draft them better.

 

[camberwell fox]

“The spirit of the rules” being ‘make sure the big boys stay big’?

This is the crux f it for me.

We didn’t cheat, we couldn’t comply with rules due to extraordinary circumstances.

Whether we should have planned fir a relegation scenario is a different question.

 

[Fox Fan]

This is the crux f it for me.

We didn’t cheat, we couldn’t comply with rules due to extraordinary circumstances.

Whether we should have planned fir a relegation scenario is a different question.

There was quite an accusation of cheating for our administration process as well.

I was a little young to fully know all of the accountancy details, but when we went into Administration, it very much felt like a position of last resort as well - not one we had actively chosen.

To my understanding, we had been poorly financially run by Elsom and co, but we couldn't have foreseen the collapse of ITV Digital. We tried to move players out as much as possible, with Savage and Piper both going, but similar to now, we couldn't move on the big earners like Muzzy, Elliott and Walker.

All of which was compounded by building a new stadium.

It felt at the time like we tried to do everything we could to avoid administration - and it wasn't our fault that rules hadn't been drawn up to manage what happened to clubs that fell into that situation.

 

[pork pie fox]

Looks like we were looking at a 7 point deduction without this:

 

[Brown Nose]

This is the crux f it for me.

We didn’t cheat, we couldn’t comply with rules due to extraordinary circumstances.

Whether we should have planned fir a relegation scenario is a different question.

The key point for me is that these rules are supposed to protect clubs from unscrupulous owners.

The level of debt loaded onto our books and taken via Macquarie bank make the people running our club dangerous.

On two occasions, KP have bailed us out by converting debt to equity and this lottery win every few years is the only thing keeping the club afloat.

If KP want to spend their money on LCFC, that's great. I'm delighted about it.

But we saw in 2018 how fragile such a dependency can be. Our existence is basically based on the fate and fortune of Aiyawatt.

So I like FFP/PSR rules. You only have to look at what happened to Portsmouth to realise how easily it can go wrong.

If Aiyawatt wants to spend £200m a season on player wages, it's fine by me. But I don't want LCFC to do it because it's insane.

As a LCFC fan, I will celebrate anything that benefits my team. So sneaking our way out of trouble is brilliant. But dodging bullets isn't what I want us doing.

I want risk and exposure to sit with KP, not LCFC. If the rules were based this way, I think everybody would be able to just get on with the football.

 

[camberwell fox]

The key point for me is that these rules are supposed to protect clubs from unscrupulous owners.

The level of debt loaded onto our books and taken via Macquarie bank make the people running our club dangerous.

On two occasions, KP have bailed us out by converting debt to equity and this lottery win every few years is the only thing keeping the club afloat.

If KP want to spend their money on LCFC, that's great. I'm delighted about it.

But we saw in 2018 how fragile such a dependency can be. Our existence is basically based on the fate and fortune of Aiyawatt.

So I like FFP/PSR rules. You only have to look at what happened to Portsmouth to realise how easily it can go wrong.

If Aiyawatt wants to spend £200m a season on player wages, it's fine by me. But I don't want LCFC to do it because it's insane.

As a LCFC fan, I will celebrate anything that benefits my team. So sneaking our way out of trouble is brilliant. But dodging bullets isn't what I want us doing.

I want risk and exposure to sit with KP, not LCFC. If the rules were based this way, I think everybody would be able to just get on with the football.

You can’t have your cake and eat it.

On my me hand you are saying you are uncomfortable with KP putting money into the club to keep us afloat but further along you are saying you want the exposure to sit with KP and not LCFC.

We are INCREDIBLY fortunate to have owners who are willing (not completely auturistcally) to “put their money where their mouth is” and are not creaming off milllions of £££’s every season.

Our owners have faults and these are clear to see but our financial strength (overall) is solely down to their approach with the club.

The investments they have made in the training facility, squad and infrastructure along with the proposed ground (and surrounding area) development are all designed to put us in a position when we can stand alone, or close to it.

We aren’t close to that yet and relegation has dented our plans.

KP have promised that when and if they ever sell us, that we will as a club benefit from the sale and I believe this to be true not because I am a “blue mongie” but because of the evidence I see in front of me.

We have )overall) been excellently financially managed.

 

[Brown Nose]

You can’t have your cake and eat it.

Why not?

KP have done amazingly well out of owning us.

I don't understand why their choice to over-expose us should be gambling with our club. You'd be a bit annoyed if I went to a casino and used your house as collateral.

Back to the point of the thread, that's what PSR is for. It isn't well written or thought through but I maintain that it is necessary.

 

[camberwell fox]

Why not?

KP have done amazingly well out of owning us.

I don't understand why their choice to over-expose us should be gambling with our club. You'd be a bit annoyed if I went to a casino and used your house as collateral.

Back to the point of the thread, that's what PSR is for. It isn't well written or thought through but I maintain that it is necessary.

It might be necessary but the format is flawed. It doesn’t work.

 

[M17TT C]

Why not?

KP have done amazingly well out of owning us.

I don't understand why their choice to over-expose us should be gambling with our club. You'd be a bit annoyed if I went to a casino and used your house as collateral.

Back to the point of the thread, that's what PSR is for. It isn't well written or thought through but I maintain that it is necessary.

Which club isn't run like that though?

If Top/KP decide to pull the plug, there will be another lunatic with more money than sense, or questionable money, that will want to buy us.

Top/KP have showed no signs of doing this though and if they did, they would be writing off huge investments they have made here. If they did want to move away it is in their interests to make us as successful as possible as that is the only way they will ever get a return on their investment.

The house analogy doesn't work as LCFC will almost certainly always exist.

 

[M17TT C]

Is our financial year end relevant? If the reporting date for PSR calculations is 30 June, it doesn’t matter when our financial year end is, we would just have to submit figures for PSR that run up to that date, surely? I can understand why we’d change our year end to then, to bring it into line with that date makes it a bit easier to do, but if our year end was still earlier, we’d always be allowed to factor in transactions after the year end, but within the PSR calculations window.

I could be wrong here, but I don’t think changing this would make any difference.

Ultimately, aren’t the key things here the date at which the charge is triggered and the date at which our membership of the Premier League ends? The fact that they’re out of line is what seems to have saved us.

I think the accounting year end played a big part as if we submitted end of May, we would have still been a PL club and therefore bound by their rules and still being able to be charged.

I think you're right on the last paragraph in that it is a combination of circumstances that has saved us - our accounting year end, getting relegated and the date of the transfer of share and also the timing of the charges in that the PL tried to bring the charges about when we were an EFL club, and vice versa.

All a bit dodgy/lucky and we need to be double clean now as both the PL and EFL will be gunning for us for any slight breach in the future.

 

[Real Sharapova]

I think the accounting year end played a big part as if we submitted end of May, we would have still been a PL club and therefore bound by their rules and still being able to be charged.

I think you're right on the last paragraph in that it is a combination of circumstances that has saved us - our accounting year end, getting relegated and the date of the transfer of share and also the timing of the charges in that the PL tried to bring the charges about when we were an EFL club, and vice versa.

All a bit dodgy/lucky and we need to be double clean now as both the PL and EFL will be gunning for us for any slight breach in the future.

Something I read this morning may mean we were very lucky. The change in the year end was so that LCFC's accounts ran to the same date as other group companies. It may have been a masterstroke, but I'm inclined to think otherwise. Whoever chose to do it however deserves a drink!

 

[Miles Away]

You'd be a bit annoyed if I went to a casino and used your house as collateral.

Depends what you won. Like a premier league title and an FA Cup

 

[Miles Away]

What does this mean? I'm confused.

That if any of the relegated clubs also broke PSR rules, the Premier League won’t be able to charge them.

They now have a massive loophole in their rules.

 

[Feriol]

The key point for me is that these rules are supposed to protect clubs from unscrupulous owners.

The level of debt loaded onto our books and taken via Macquarie bank make the people running our club dangerous.

On two occasions, KP have bailed us out by converting debt to equity and this lottery win every few years is the only thing keeping the club afloat.

If KP want to spend their money on LCFC, that's great. I'm delighted about it.

But we saw in 2018 how fragile such a dependency can be. Our existence is basically based on the fate and fortune of Aiyawatt.

So I like FFP/PSR rules. You only have to look at what happened to Portsmouth to realise how easily it can go wrong.

If Aiyawatt wants to spend £200m a season on player wages, it's fine by me. But I don't want LCFC to do it because it's insane.

As a LCFC fan, I will celebrate anything that benefits my team. So sneaking our way out of trouble is brilliant. But dodging bullets isn't what I want us doing.

I want risk and exposure to sit with KP, not LCFC. If the rules were based this way, I think everybody would be able to just get on with the football.

I agree, but I think the rules should be to limit the amount of debt rather than investment.

 

[M17TT C]

Something I read this morning may mean we were very lucky. The change in the year end was so that LCFC's accounts ran to the same date as other group companies. It may have been a masterstroke, but I'm inclined to think otherwise. Whoever chose to do it however deserves a drink!

Yeah I want to believe we knew what we were doing all along but I think it was more luck than judgement.

I'm sure I read that we extended the accounts so that we could get the Maddison sale in that year's accounts.

Maybe that was just a smokescreen and we knew this all along....

Whatever the reasoning, its certainly a decision to celebrate!

 

[SJN-Fox]

Du Du Du Du.... Nick De Marco to be sung at the next home game!

Stolen from FB.

 

[Joe_Fox]

Stolen from FB.

View attachment 18944

I mean, he's basically scored at least four winning goals for us this season without even being in the squad. Quite an achievement.

 

[Joe_Fox]

That if any of the relegated clubs also broke PSR rules, the Premier League won’t be able to charge them.

They now have a massive loophole in their rules.

Thanks, but what is the relevance of transferring the shares to us?