MM delay

[Ox Fox]

This was a follow they posted:

Looking at the Alternatives
Written by Nigel Ritchie
Thursday, 16 November 2006
Having looked at issues surrounding the Mandaric bid in this article the Trust looks at various alternative funding options the City Board might put to shareholders at the EGM this weekend.

Back in June then newly appointed City Chairman Andrew Taylor answered questions from Trust members re the clubs finances & what he & his colleagues on the Board were doing to bring additional finance to the club.

Below we repeat some of Andrew’s answers & ask if they are still & how they compare, favourably or otherwise to takeover bid…

In answer to a question about the level of the clubs’ debt & owning the Walker Stadium Andrew replied…

“First, let's be clear about the level of debt. The only (significant) debt the club has is in the stadium. It's not a case of clearing debts and then working on buying the stadium. It's simply a case of working out what we do to fund the acquisition of the stadium. One of the ways to do it was to joint venture our interest in the stadium. There was some opposition to the Tigers ground share. Much of the criticism was well intentioned but emotive and ill informed when the underlying objective was to find a way of protecting the long term future of the club at the Walkers. The ground share remains one of the ways that we could raise the capital to do it......”

Trust comment: Clearly then the issue of ground share is something Andrew Taylor was not (at that time) ruling out. With that in mind & knowing when members were canvassed two years ago only just over half were in favour we decided to canvass opinion again in light of the bid by Mandaric....

What would be the benefit of a ground share compared to the Mandaric bid? It depends on how Mandaric would fund purchase of the stadium (see link - http://foxestrust.co.uk/site/index.php?option=com_content&task=view&id=246&Itemid=2 ). But the main benefit is that ownership of the stadium – or at least 50% - it would immediately come back to the club & the debt would be vastly reduced.

The draw back is the club would never be likely to entirely own the stadium again – at least for the foreseeable future.

Responding to two questions about further investment from existing shareholders Andrew commented…

“Maybe but certainly nothing in the order of the £6m-£7m that we received as a parachute last season……I think existing shareholders have been very generous already with many taking up the rights issue that took place a year or so ago. I take the view that we have to demonstrate new skills on and off the pitch. On the pitch RK has to maintain the momentum that he and his team generated over the last 16 games of last season and off the field we have to be sharper in every way. We have to change the trajectory of LCFC and our existing investors may feel more confident about our ability to use the capital well if they see greater professionalism in the management of the club's affairs.”

Trust comment: From the answers above it appears a further rights issue, while generating additional income, would not generate huge sums in the region of tens of millions of pounds that a wealthy owner might invest. Crucially however any monies raised via a rights issue would be additional income that would not be repayable – unlike a loan from a wealthy owner such as Mandaric.

There maybe other financing options the Board of Directors have been exploring prior to the bid by Mandaric being received. The decision for the Board & shareholders alike do these options either singularly or combined offer a better financial direction for the club than the bid by Mandaric?

News Update - The Trust has continued dialogue with a representative of Milan Manderic today posing a series of questions, some of the answers will appear in the media on Friday which should clarify elements of the bid & his plans for the club, dialogue is ongoing however assurances have been given to the Trust about their involvement in the new structure of the club should the bid be approved

Last Updated ( Thursday, 16 November 2006 )

 

[Foxes_Trust]

Maybe the board are working hard on getting the 90% required to get the deal through? Perhaps explains why the FT haven't had the bid yet either? They may be classed under the 'Mandatory Purchase' 10%...

Being in the Top 15 of the shareholders, we have been in ongoing dialogue however still await the final bid document

 

[Nottingham Fox]

Being in the Top 15 of the shareholders, we have been in ongoing dialogue however still await the final bid document

If you were a betting person, do you personally think a deal by the end of the month is likely?

 

[alex]

Being in the Top 15 of the shareholders, we have been in ongoing dialogue however still await the final bid document

That should be there today no?

 

[homer]

That should be there today no?

Don't you know, Alex ?

 

[The Voice From Above]

its just around the corner.

 

[highland fox]

Don't you know, Alex ?

He obviously doesn't....

 

[Feriol]

This was a follow they posted:

in that article, the pro's and cons are listed, seems pretty fair, and unbiased. no indication that other options were prefered to MMs

There maybe other financing options the Board of Directors have been exploring prior to the bid by Mandaric being received. The decision for the Board & shareholders alike do these options either singularly or combined offer a better financial direction for the club than the bid by Mandaric?

Common sense IMO. and Financing options could mean anything, loans, groundshare, player sales, rights issue, getting TNBD to work as a Gigalo on the side? etc...

 

[highland fox]

That should be there today no?

Its always questions with you isn't it Alex? Why? When ? Where ?

 

[alex]

Its always questions with you isn't it Alex? Why? When ? Where ?

Cntu.

 

[lazzer]

Its always questions with you isn't it Alex? Why? When ? Where ?

how much is this charlie :icon_lol:

 

[alex]

how much is this charlie :icon_lol:

Eh?

 

[Feriol]

Written by Trust Board
Friday, 10 November 2006
The role of the Foxes Trust is to act to ensure the long-term viability of the club and that is our prime concern with any potential future owner’s proposals.

Over the last week the Foxes Trust Board has sought to question the large assumptions being made about the Milan Mandaric bid via media interviews and message board posts.
This has been viewed by some fans as the Trust being anti Mandaric, this is not the case however it was in part to add balance to the coverage of current situation, where the Leicester Mercury articles, in particular Bill Anderson’s, appear to be very pro Milan Mandaric.

The “£25m” bid, which was first utilised by a journalist known to work closely with Milan Mandaric, has continually been utilised by the media ever since. Both Milan Mandaric and the Leicester City board have not provided any breakdown of the bid, and as “other options” are being discussed, this is quite understandable, however the Trust Board feels it is important for fans to have a more in depth understanding of what this (or any other bid entails).

For the Milan Mandaric bid it has been stated that the shareholders will get their money back, and although the timing of payment appears still in negotiation, that accounts for around £6.4m....

Last Updated ( Friday, 10 November 2006 )

the last point in bold might raise some questions but please see this on the OS two days prior to the above statement

http://www.lcfc.premiumtv.co.uk/page/News/NewsDetail/0,,10274~924850,00.html

Mr Manderic's Bid is one of a number of options which the club is currently considering

The FTs speculation on other options being discussed was likely in responce to that statement. they gave no comment as to what they were or whether they were prefered options

 

[Yorkshire Vixen]

 

[lazzer]

you are not wrong yorkie :icon_roll

 

[Nottingham Fox]

I think all threads should be closed on this subject until the club announce something. Mind you that could be months away .... feck it carry on speculating.

 

[PFKAKTF FOX]

the last point in bold might raise some questions but please see this on the OS two days prior to the above statement

http://www.lcfc.premiumtv.co.uk/page/News/NewsDetail/0,,10274~924850,00.html



The FTs speculation on other options being discussed was likely in responce to that statement. they gave no comment as to what they were or whether they were prefered options

Does it fecking matter now, it will all be irrelevant by this evening, or at least I hope it is at odds of 6-1 :icon_bigg

 

[Nottingham Fox]

Does it fecking matter now, it will all be irrelevant by this evening, or at least I hope it is at odds of 6-1 :icon_bigg

Now 4-1 .... some geezer had a 'private bet' Name of M Mandaric

 

[PFKAKTF FOX]

Now 4-1 .... some geezer had a 'private bet' Name of M Mandaric

:icon_lol:

Let's fecking hope so

 

[Feriol]

Does it fecking matter now, it will all be irrelevant by this evening, or at least I hope it is at odds of 6-1 :icon_bigg

i'm at home ill, i need something to do.

i would sooner talk about this than watch housewife TV thanks.

this is the LCFC forum after all.....

i hope you are right though.