Solvent, debt free, well ran club : 0 - 3 : £100m Debt ridden, baled out chancers....

Re: Solvent, debt free, well ran club : 0 - 3 : £100m Debt ridden, baled out chancers

You didn't answer my question. How have they hidden it within a debt for equity swap, and it what way does that benefit them over keeping it as a loan that could potentially have accrued them interest each year?

 

Re: Solvent, debt free, well ran club : 0 - 3 : £100m Debt ridden, baled out chancers

Good lord, and you are an economic researcher?

Actually QPR and Bolton are still in debt, perhaps if debt for equity swaps are so great they should do it also?

 

Re: Solvent, debt free, well ran club : 0 - 3 : £100m Debt ridden, baled out chancers

I'm not trying to say you are in debt, nor am I having a go at Leicester in isolation. I'm saying your wage bill is higher than your income. That's a daft way of running a business, and unfair to other similar businesses that you compete with.

On a higher level, my problem is not really with Leicester who are only doing what dozens of other clubs with rich lunatics for owners are doing. My problem is with football itself which is riddled with corruption, waste, excessive spending, unpaid debt (often at the expense of small businesses), illegal rules (in my opinion the football creditors rule), open challenges to rules designed to make football better (the FPP rules) - I could go on for ever.

All this is financed by people paying exorbitant fees to Sky and exorbitant admission prices. I've had enough of it and unfortunately my club, one that at least tries to do things the right way, will end up suffering while the money merry-go-round goes on. It's a sick and corrupt business, which ever way you look at it.

 

Re: Solvent, debt free, well ran club : 0 - 3 : £100m Debt ridden, baled out chancers

Classy! So now we see that Vardy was just apeing the behaviour of the fans.

Do you know what mate, we probably would enjoy League One more than the Championship these days, because the Championship is full of teams like Leicester, Bolton and QPR, examples of what is wrong with the game. Taking all the debt out of the equation, you are currently top of the league with players you cannot afford, because your turnover can't meet the wages. In other words you are cheating. And rather than do something about this you are employing lawyers to challange the rule, so you can carry on cheating. In the back of your minds you must know this and must squirm when you have to justify it to yourself, in the same way you did when you stiffed all the local companies by going into administration and then started splashing the cash on more players you can't afford once you had explained to the creditors why they weren't getting their money.

Enjoy the Premiership, enjoy the whopping price hike in your season tickets to pay for the next load of players you can't afford and we will keep a place warm in League One for you when you come crashing down after you find out that your owner is a businessman, not a Leicester City fan.

And you're probably right about bits of Barnsley not being too nice, but can I just point out that you come from Leicester and not Florence.

 

Oh the joys of a well reasoned and well argued and excellently constructed response! His reply evokes memories of sunny, fun filled days out over the years in the tourist capital of England!

Bitter? No! Honourable, yes! and whilst you're happy enough to sling insults, I'm happy enough to realise that eventually one day you'll look back and think 'mmmm those smelly Yorkshire people had a point'!

 

Re: Solvent, debt free, well ran club : 0 - 3 : £100m Debt ridden, baled out chancers

So what you are saying, is there is nothing that's stopping your owners from walking out and ****ing you over if they want to.

You know more about Leicester, really? The bloke who thinks converting debt to equity is the only thing we could do to avoid bankruptcy?? If you are going to come out with such ill informed comments nobody is going to take you seriously.

PS. "Overall net debt grew from £3.8m to £4.5m" You aren't debt free fella.

 

Re: Solvent, debt free, well ran club : 0 - 3 : £100m Debt ridden, baled out chancers

You do know, that it's not cheating don't you... please tell me you do.

Morally the right thing? Within the spirit of the game? Sayings I could live with, but there is not a single rule that doesn't allow owners to put money into clubs, even today with FFP you can still put in £5m with no problem at all from the league.

 

Re: Solvent, debt free, well ran club : 0 - 3 : £100m Debt ridden, baled out chancers

No, we aren't debt free. 'We' don't own our stadium/land. It is owned by a joint venture between the Council and our owner as I recall. Part of the land has a planning application in for 14 semi detached houses to be built on it. If anyone wished to buy BFC they would only buy the business. They'd have to buy the ground/land separately. Then for some reason they'd have to pay an extra £6million (I think from memory) should we ever be promoted to The Premiership.

This is why I'm a bit uncomfortable getting a bit sanctimonious towards other clubs. Fwiw I thnik we're all in varying degrees of muck.

 

Re: Solvent, debt free, well ran club : 0 - 3 : £100m Debt ridden, baled out chancers

Of course it's cheating. You're team is one if those destroying football.

 

Re: Solvent, debt free, well ran club : 0 - 3 : £100m Debt ridden, baled out chancers

I might try it with my mortgage. I know HSBC I owe you a couple of hundred grand let's swap it for equity in me...

 

Isn't the £6mill a to recoup the money he pumped in to get us out of the 'brown stuff' int early 00's?!? It's only ever repayable if we're int Prem.

We've run at virtually break even for a good few years now. I don't know why the Leicester on ere are getting arse on. I don't agree, it's against everything I think about footy now. Good luck to them, but equally don't be bairning when you become another Portsmouth. Can't have it both ways!

 

Re: Solvent, debt free, well ran club : 0 - 3 : £100m Debt ridden, baled out chancers

Then we sold John Stones for £3m two weeks after that year old article you are quoting and posted a profit of £2m for that financial year. There is an understanding Patrick will receive 6m if we were to ever be promoted to the premier league. The 'debt' if you like was incurred in the rescuing of the club from the previous owner who had effectively mortgaged the club in order to buy it. Subsequently, Patrick has underwritten operational losses on the journey to self-sufficiency and maintaining our position in the championship.

If you think that is any way comparable to the manner that business is being conducted at Leicester, Bolton, QPR, Forest etc - then there is really no point in carrying on this discussion.

Here you go, debt/equity - it's a fair general definition.

Debt-for-equity swap[edit]

In a debt-for-equity swap, a company's creditors generally agree to cancel some or all of the debt in exchange for equity in the company.
Debt for equity deals often occur when large companies run into serious financial trouble, and often result in these companies being taken over by their principal creditors. This is because both the debt and the remaining assets in these companies are so large that there is no advantage for the creditors to drive the company into bankruptcy. Instead the creditors prefer to take control of the business as a going concern. As a consequence, the original shareholders' stake in the company is generally significantly diluted in these deals and may be entirely eliminated, as is typical in a Chapter 11 bankruptcy.

 

Re: Solvent, debt free, well ran club : 0 - 3 : £100m Debt ridden, baled out chancers

Well it's nice to have an honest reply.

I'm not discussing the rights and wrongs of investment in football, that's a completely different argument I am trying to correct some rather misinformed opinions on here about my club.

Whilst FFP should hopefully encourage people to spend within their means, I'm not quite so comfortable with someone being stopped from investing should they wish to (so long as the money is not in the form of loans).

And then of course it means clubs are highly likely to all fall even more in order of size. I believe we're on track for around a £22m turnover this year with increased crowds. To put that in perspective yours I believe was £8.6m. If all clubs fall within FFP it still means would could potentially have £13m a year more to spend on wages... it's still going to be hard to compete with that if both clubs have decent managers.

If your owner decided he wanting to buy you a few players, or wanted to build you a better ground out of his own pocket, I certainly wouldn't begrudge them spending their own cash.

 

Re: Solvent, debt free, well ran club : 0 - 3 : £100m Debt ridden, baled out chancers

Its because a holier-than thou attitude is all we may have to hold on to come May 3rd.... personly I don't care if your club as run up a bit of debt, at least you've sumert to show for it..top of the league, prem bound..and it dunt alf show on the pitch....good look too ya..

 

Re: Solvent, debt free, well ran club : 0 - 3 : £100m Debt ridden, baled out chancers

Well put. I'm uncomfortable at some land maybe having houses built on it. We don't know how many potential buyers are put off that the football club don't own everything themselves due to the council being involved. People in glass houses etc....

 

Re: Solvent, debt free, well ran club : 0 - 3 : £100m Debt ridden, baled out chancers

This debt denial is much like my fear of opening my own bank statements. Only with 7 zeros tagged on.

 

Re: Solvent, debt free, well ran club : 0 - 3 : £100m Debt ridden, baled out chancers

Leicester City are second only to the mighty "Barnsley" for the most number of seasons spent in the 2nd tier of English football so I wouldn't get too carried away with your minor little blip. We could be playing each other again very soon. I remember Birmingham City fans singing the same song a few years ago. I daresay Portsmouth, QPR, Bolton, Blackpool, Burnley and Cardiff fans were thinking exactly the same when they were promoted.
I've no major gripe with Leicester as my name would suggest but keep it real mate, you started with a well-reasoned argument but there's no need to resort to "Bunch of ****s"
My argument in your defence would be that your turnover is probably double what ours is given the average crowds and therefore why shouldn't you pay double the wages?

 

Re: Solvent, debt free, well ran club : 0 - 3 : £100m Debt ridden, baled out chancers

I agree on that, and as I understood it, FFP was to try and stop owners loaning money to clubs, then saddling them with unserviceable debt. I don't know enough about the financial world to accuse Leicester owners of doing that, we can only go on what's reported....

As much as it might seem I've an issue with how our ownership is structured, I wouldn't want him dipping into his pockets anymore than he has already - that said, if I win the euromillions this week, get ready - assuming he'll sell me the stadium etc as well....

 

Re: Solvent, debt free, well ran club : 0 - 3 : £100m Debt ridden, baled out chancers

I don't know mate, it just seems unusual to sell a business, then to say that if the new owners make a success of it you want more money. The price should be the price imho - but that's just me going on media reports - not sure what the factual story is.

 

Re: Solvent, debt free, well ran club : 0 - 3 : £100m Debt ridden, baled out chancers

So you are in debt and not debt free? You can't say you are debt free when you aren't. And you say you know more about us!!!!!!

The companies creditor was the owner... so whilst it's a lovely definition, if means absolutely F'all. What do you think the owner did, take the company over from himself?