Takeover Complete

[Redditch Fox]

I'm not as pessimistic as some about this, albeit with no evidence whatsoever. Prior to the takeover we were faced with the possibility of our chairman and owner being effectively banned from owning a football club by the Football League if found guilty in his upcoming court case. God knows what would have happened to us if he were still in situ then. Also it's pretty obvious the Mandaric has neither the means or the willingness to keep throwing large amounts of money at the club, and I wonder if he would have been able to keep funding the trading losses the club is running up for much longer. Against that we have new owners, of which the leading light seems to have some wealth, and seems a bit of an Angolphile as well ( house in London, hangs around with the polo playing set ). If you believe the spin some or all of our debts are to be cleared. I would not expect much more than that moneyw*s* at the moment, but better than our financial position pre-takeover. Compared with having Mandy at the helm I would rather go with the devil we don't know to be honest ( and I know Mandy is still Chairman - that's for PR purposes I would guess, and he will stand down in a few months citing personal or business reason course]).

I agree with most of that - especially your point about the lack of sustainability of MM continuing to fund the deficit.

I'm somewhat more sympathetic towards MM in as much as its quite understandable that he is coming to a point in his life when he isn't likely to want all the hassle anyway.

 

[lazzer]

Proper ones I hope :icon_bigg

Dickinson and Morris every time. :icon_wink

 

[Dour]

http://www.lcfc.com/page/LatestNews/0,,10274~2121018,00.html

Still none the w*s*r myself. No names mentioned, no percentages stated or figures of debt. I understand their reasons for not stating an amount they purchased the club but I am stilli rather 'disappointed' with the whole thing.

All these 'pledges' yet none have been specific and if they think there are millions to be made in Asia, they are thick.

Bizarre nonsense:

1) Why do this deal with Leicester City?

External investors who intend to let existing management teams manage; like to see a number of things clearly in place before they invest:

a)A stable environment b) a management which they can 'buy-into' and which has a strategy c) the opportunity for the business to grow and d) a real opportunity to contribute more than just money.

The new private backers clearly see LCFC in that light and therefore it reduces their 'risk' and increases their confidence. LCFC has shown an ability to stabilise its finances and grow the business (especially since the Administration of 2002) and has a real opportunity to go much further and join higher leagues which will further generate incomes and opportunities.

The city and county provide opportunities to extend support and the world wide exposure of the club presents a real shop window for talent and commercial opportunities.

The fact that the Chairman and CEO remain in place also makes this attractive and stable opportunity.

Reckon they've let Mandaric loose on the keyboard there. I can't see how else you would describe escalating debt as stabilising the finances.

 

[merchant_banker]

Some of the answers here are important, if true, i.e. no debt brought into club, no government involvement, etc.

 

[SilverFox]

From the Mercury

The deal sees Top (Aiyawatt Raksriaksorn) take a 60 per cent stake. Mr Mandaric and a third, as yet unnamed, Asian business person will own the remainder. Mr Mandaric said this person would be named in the next few months. The new owners will continue to underwrite the club's £26 million debt.


Why the next few months. Why not now.

This all looks a bit dodgy to me.

 

[pork pie fox]

3) What will happen to the debt in the club?

It is always a consideration and option to use new finance to replace debt and as a careful management such issues are always under consideration but given that we are happy with the repayment plans and table we see no reason to do more than continue to service the debt for now and use new finances independently.

I could be wrong, but some people seemed to be saying that debt might be paid off as part of the investment, whereas this answer seems (to me at least) to say that debt will stay the same. Does this mean we'll have some money to spend from the new investment? Or does it just mean that any money they put in to invest in the club will go to MM to pay him back the money he's "loaned" us?

(Please don't shout at me if I've missed something obvious)

 

[pork pie fox]

Dickinson and Morris every time. :icon_wink

Good boy :icon_wink

 

[Dour]

3) What will happen to the debt in the club?

It is always a consideration and option to use new finance to replace debt and as a careful management such issues are always under consideration but given that we are happy with the repayment plans and table we see no reason to do more than continue to service the debt for now and use new finances independently.

I could be wrong, but some people seemed to be saying that debt might be paid off as part of the investment, whereas this answer seems (to me at least) to say that debt will stay the same. Does this mean we'll have some money to spend from the new investment? Or does it just mean that any money they put in to invest in the club will go to MM to pay him back the money he's "loaned" us?

(Please don't shout at me if I've missed something obvious)

I think that means we keep the existing £40million plus of debt and add some more too it. Kinda like the Portsmouth model.

 

[Redditch Fox]

I think that means we keep the existing £40million plus of debt and add some more too it. Kinda like the Portsmouth model.

Irrespective of the model, no investor is going to make any money unlesss and until we are promoted. If your estimate is about right - the debt is in excess of the value of the club so we are broke.
But in the world of English football, we are going to need to get more broke if we want to get promoted and become financially viable.

 

[Jeff]

But in the world of English football, we are going to need to get more broke if we want to get promoted and become financially viable.

That kind of thinking is why the game in this country is in such a mess.

There can only be 20 teams in the Premier League at one time. If you've got 20 teams in the Championship all going into debt trying to get the Prem gold, most will fail and end up with more debt than they can service.

 

[The Old Fox]

That kind of thinking is why the game in this country is in such a mess.

There can only be 20 teams in the Premier League at one time. If you've got 20 teams in the Championship all going into debt trying to get the Prem gold, most will fail and end up with more debt than they can service.

I agree with you completely. The only problem is that unless everyone plays by sensible rules, the winners will be amongst the teams that take a risk.

 

[Jeff]

the winners will be amongst the teams that take a risk.

Blackpool?

 

[Dour]

That kind of thinking is why the game in this country is in such a mess.

There can only be 20 teams in the Premier League at one time. If you've got 20 teams in the Championship all going into debt trying to get the Prem gold, most will fail and end up with more debt than they can service.

But Redditch is partly right. Given where Milan's profligacy has taken us, prudence or a rational approach no longer seems a viable option.

 

[The Old Fox]

Blackpool?

Blackpool do not seem to have any expectation of staying in the Premiership. They had a fortuitous break and good luck to them. We, however, want a bit more than a season amongst the elite: we want to be the elite!

 

[Macky]

Blackpool do not seem to have any expectation of staying in the Premiership. They had a fortuitous break and good luck to them. We, however, want a bit more than a season amongst the elite: we want to be the elite!

Do we? I thought we were just looking for a payday

 

[merchant_banker]

3) What will happen to the debt in the club?

It is always a consideration and option to use new finance to replace debt and as a careful management such issues are always under consideration but given that we are happy with the repayment plans and table we see no reason to do more than continue to service the debt for now and use new finances independently.

I could be wrong, but some people seemed to be saying that debt might be paid off as part of the investment, whereas this answer seems (to me at least) to say that debt will stay the same. Does this mean we'll have some money to spend from the new investment? Or does it just mean that any money they put in to invest in the club will go to MM to pay him back the money he's "loaned" us?

(Please don't shout at me if I've missed something obvious)

They have a choice of investing in new players or paying off the debts. They seem to think they can service the debt at the moment and want to invest in the team with the hope of getting to the Premiership, which would allow them to pay off the debt more quickly (or sell the club for more money with the debt still outstanding:icon_conf)

 

[Jeff]

They have a choice of investing in new players or paying off the debts. They seem to think they can service the debt at the moment and want to invest in the team with the hope of getting to the Premiership, which would allow them to pay off the debt more quickly (or sell the club for more money with the debt still outstanding:icon_conf)

So what happens if they invest in the team but we don't get promoted?

 

[give_us_a_wave]

8) Will Paulo Sousa choose the players who are bought and sold?

No intention to move to a European Director of Football model

That tells us what WON'T happen but not what WILL.


Hmm...why not just say YES? Is it just the corporate habit of never,ever being able to give a straight fecking answer? Or does it mean that the board will be picking the team?

 

[Granite Fox]

8) Will Paulo Sousa choose the players who are bought and sold?

No intention to move to a European Director of Football model

That tells us what WON'T happen but not what WILL.


Hmm...why not just say YES? Is it just the corporate habit of never,ever being able to give a straight fecking answer? Or does it mean that the board will be picking the team?

I saw that too. It doesn't say Sousa will pick the team (which would have answered the question), just that we will not be hiring a Director of Football to do it.

 

[The Old Fox]

8) Will Paulo Sousa choose the players who are bought and sold?

No intention to move to a European Director of Football model

That tells us what WON'T happen but not what WILL.


Hmm...why not just say YES? Is it just the corporate habit of never,ever being able to give a straight fecking answer? Or does it mean that the board will be picking the team?

If that had been answered with a simple YES, Sousa could ask for Messi and then resign in a fit of pique when Milan says NO!