Leicester At It Yet Again! (5 Viewers)

[jto123]

Is it a risky strategy? Would the points go up if they lost the appeal?

 

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[Sick Boy]

Is it possible the appeal takes them past this season so deduction is not delivered till a final decision on the appeal is made?

I'm not sure the appeal suspends the points deduction.

 

[edgy]

Is it a risky strategy? Would the points go up if they lost the appeal?

There's no precident for it. Other than Forest appealled theirs and nothing happened either way.

 

[Travs]

Any club would appeal it. Don't think thats a surprise, regardless of guilt.

Their next two games are Stoke and Middlesborough away.... they could be deep in the mire after those.

 

[Skyblue Bangkok]

Is it possible the appeal takes them past this season so deduction is not delivered till a final decision on the appeal is made?

PL have said a decision must be made before the end of this season.

 

[KenilworthSkyBlue]

Any club would appeal it. Don't think thats a surprise, regardless of guilt.

Their next two games are Stoke and Middlesborough away.... they could be deep in the mire after those.

I think in their case even though they have no leg to stand on they're wanting to appeal as the ownership probably have very real fears that they could go down. It's a desperate last ditch attempt.

The irony is, this just adds further noise and distraction to both players and the incumbent manager when it categorically isn't needed.

 

[Bad Boy]

It's a long watch.

Now throw the fucking book at them and deduct 12 points

 

[Flying Fokker]

Any club would appeal it. Don't think thats a surprise, regardless of guilt.

Their next two games are Stoke and Middlesborough away.... they could be deep in the mire after those.

A fair number of Leicester fans seem to think that the owners are incompetent and that they shouldn’t appeal..

others suggest it’s because the Premier League is appealing the lenient deduction.

 

[play_in_skyblue_stripes]

Any club would appeal it. Don't think thats a surprise, regardless of guilt.

Their next two games are Stoke and Middlesborough away.... they could be deep in the mire after those.

Hopefully Mark Robins is a lot happier than Adi Vivash after those games.

 

[HadjiChippo]

It's a long watch.

Now throw the fucking book at them and deduct 12 points

watched this the other day, fascinating insight from someone who came into a struggling club (Sunderland), and really articulates how hard Leicester might find it if they get relegated, especially if they don’t get immediately promoted back to the championship. The guy in the video also suggested that the deduction should’ve been higher, and that the EFL might not have wanted to be responsible for relegating a club and in turn, potentially bankrupting them. I’d imagine if Leicester manage to stay up, the clubs who it’s at the expense of might have a thing or two to say.

Sounds like the £100 million training ground is an albatross around their neck, the maintenance alone must be an incredible cost.
An experienced, savvy owner would struggle to save them right now, let alone the idiot they have in charge.

 

[Evo1883]

Oh no

 

[Broken Hearted Sky Blue]

Oh no

Did they miss hundred off that? Asking for a friend.

 

[MusicDating]

As I understand it -

Leicester got off the previous charge as they extended their account period by 1 month and so were out of the jurisdiction of the PL. So fast forward a year and Leicester managed to persuade the commission that this latest breach should be judged over 36 months, rather than 37 (reducing their overspent by about £3m). So that month is now simply ignored...

The PL proposed three cases in relation to the appropriate starting point of points deductions -

317.1. Its primary case was that the EFL Sanctioning Guidelines should be “applied as normal” in this case, notwithstanding the fact that LCFC’s ULT for FY24 was £83 million. On that basis, the PL submitted that the appropriate starting point under the EFL Sanctioning Guidelines for LCFC’s overspend (being in excess of £15 million) was a 12-point deduction, irrespective of whether the assessment was conducted on a 36-month or a 37-month basis.

317.2. The PL’s first alternative was an adjusted methodology for identifying a starting point. That approach involved applying the EFL Sanctioning Guidelines by reference to the percentage overspend, rather than the absolute value of the overspend, on a relative scale. On that basis, the PL submitted that the starting point would be a 12-point deduction on a 37-month basis or an eight-point deduction on a 36-month basis.

317.3. The PL’s second alternative was to apply the approach adopted in Everton II. That would, the PL submitted, result in a starting point of a 10-point deduction on a 37-month basis or a seven-point deduction on a 36-month basis.

The commission chose the lowest one and reduced it by a point as apparently their belated FY24 accounts showed a profit of £6.1m (guess this is why they sold the future parachute money to include it in their accounts early...).

PL claimed that Leicester had deliberately submitted their accounts late to maximise its prospects of avoiding relegation (last season) and so should get an extra point (eg back to a seven-point deduction), but although the commission accepted the breach, chose to 'weigh them in the balance with respect to LCFC’s insistence upon mitigation for its “exceptional cooperation.”' - And this is what the PL are appealing. Maybe Leicester are appealing the leniency?!

 

[LastChance]

watched this the other day, fascinating insight from someone who came into a struggling club (Sunderland), and really articulates how hard Leicester might find it If Leicester manage to stay up, the clubs who it’s at the expense of might have a thing or two to say.

Good point. If the EFL are extraordinarily lenient on them and they escape by a point, someone else will get relegated in their place. If Leicester go down and then go bankrupt that's not on the EFL.

 

[jim20]

I think it’s getting very messy, and if the 6 point deduction is reduced and that ultimately leads to Leicester being safe and another club going down it could cause knock on issues. They’ve essentially tried to circumnavigate the rules by on one hand extended the accounting period to avoid punishment while in the PL and then use the extended accounting period as part of their mitigating circumstances. For that I think they should also get a punishment, otherwise other clubs may do the same in the future!

 

[HuckerbyDublinWhelan]

Speak for yourselves. My in laws are baggies. Hope Leicester stay up

 

[Gynnsthetonic]

If they do go down, their Training ground costs something like 15m a year to run, no TV revenue, players still on massive contracts and what parachute money years they have left they've already had the money up front from McQuarie Bank. They're fucked if the go down and slightly less fucked if they stay up. Probably why they are gambling on the appeal.

 

[Terry Gibson's perm]

If they do go down, their Training ground costs something like 15m a year to run, no TV revenue, players still on massive contracts and what parachute money years they have left they've already had the money up front from McQuarie Bank. They're fucked if the go down and slightly less fucked if they stay up. Probably why they are gambling on the appeal.

They probably could cut back a bit at the training ground maybe close the golf course.

 

[Gynnsthetonic]

They probably could cut back a bit at the training ground maybe close the golf course.

They're living well beyond their means, thought they were one of the big 6 clubs of the league. It will all collapse dramatically.

 

[Warwickhunt]

They probably could cut back a bit at the training ground maybe close the golf course.

Doug might their training ground buy it for City thats what those pest did(wasps)

 

[Broken Hearted Sky Blue]

Doug might their training ground buy it for City thats what those pest did(wasps)

No way can we have our players over there for training every day. I worked there for two years when I left I had to have major surgery on my hands and feet

 

[wingy]

No way can we have our players over there for training every day. I worked there for two years when I left I had to have major surgery on my hands and feet

Carpel tunnel?

 

[Mcbean]

Carpel tunnel?

But they got 6 points and have 6 fingers so WTF is going on

 

[HadjiChippo]

watched this the other day, fascinating insight from someone who came into a struggling club (Sunderland), and really articulates how hard Leicester might find it if they get relegated, especially if they don’t get immediately promoted back to the championship. The guy in the video also suggested that the deduction should’ve been higher, and that the EFL might not have wanted to be responsible for relegating a club and in turn, potentially bankrupting them. I’d imagine if Leicester manage to stay up, the clubs who it’s at the expense of might have a thing or two to say.

Sounds like the £100 million training ground is an albatross around their neck, the maintenance alone must be an incredible cost.
An experienced, savvy owner would struggle to save them right now, let alone the idiot they have in charge.

Charlie Methven has just done a quick follow up on this video, and now believes the situation might be even worse should they get relegated. Apparently that final parachute payment he was saying would be their saving grace in League one, might have actually already been accounted for through those Macquarie loans they’ve taking out against future money. So they might’ve had (and potentially spent) their second parachute payment with interest from Macquarie.



Starts about 8 minutes in

 

[Brighton Sky Blue]

Charlie Methven has just done a quick follow up on this video, and now believes the situation might be even worse should they get relegated. Apparently that final parachute payment he was saying would be their saving grace in League one, might have actually already been accounted for through those Macquarie loans they’ve taking out against future money. So they might’ve had (and potentially spent) their second parachute payment with interest from Macquarie.



Starts about 8 minutes in

Thought that was common knowledge?

 

[HadjiChippo]

Thought that was common knowledge?

I knew they were taking loans from Macquarie, but I didn’t know they were factored on payments for players and a parachute payment they hadn’t even received yet, and on top of that, burning through the loan money too.

What do they think parachute payments are for?

 

[Brighton Sky Blue]

I knew they were taking loans from Macquarie, but I didn’t know they were factored on payments for players and a parachute payment they hadn’t even received yet, and on top of that, burning through the loan money too.

What do they think parachute payments are for?

Again, I'm very sure that the mortgaging of next season's parachute money was already well known.

Leicester City secures new loan ahead of transfer season - East Midlands Business Link

Leicester City has taken out another loan, this time from Australian bank Macquarie, ahead of the upcoming Championship season.

www.eastmidlandsbusinesslink.co.uk

 

[HadjiChippo]

Again, I'm very sure that the mortgaging of next season's parachute money was already well known.

Leicester City secures new loan ahead of transfer season - East Midlands Business Link

Leicester City has taken out another loan, this time from Australian bank Macquarie, ahead of the upcoming Championship season.

www.eastmidlandsbusinesslink.co.uk

To be fair, that’s a pretty niche regional business website, I can’t recall that being published anywhere else (Leicestershire live etc.,)

 

[Brighton Sky Blue]

To be fair, that’s a pretty niche regional business website, I can’t recall that being published anywhere else (Leicestershire live etc.,)

It was published on Companies House last year. The point is, Methven is making out like it's 'insider' info, which it isn't.

Regardless, you can have a look for yourself that they're taking out loans like this against future instalments due for outgoing transfers:

LEICESTER CITY FOOTBALL CLUB LIMITED filing history - Find and update company information - GOV.UK

LEICESTER CITY FOOTBALL CLUB LIMITED - Free company information from Companies House including registered office address, filing history, accounts, annual return, officers, charges, business activity

find-and-update.company-information.service.gov.uk

It shows they've mortgaged the £8 million due for Kasey McAteer, £7.5 million for Mads Hermansen, £5.5 million for Tom Cannon and £5 million for James Justin.

 

[Lamps]

To be fair, that’s a pretty niche regional business website, I can’t recall that being published anywhere else (Leicestershire live etc.,)

Leicester City handed financial boost for potential summer transfer push

The club have taken out another loan with Australian bank Macquarie, potentially to help their transfer business this summer under their new manager Marti Cifuentes

www.leicestermercury.co.uk

We covered this on here before the season started. It was why I thought they would struggle this season as the loans were needed just to keep them going. They have even cashed in future transfer fees due to them.

 

[Brighton Sky Blue]

Leicester City handed financial boost for potential summer transfer push

The club have taken out another loan with Australian bank Macquarie, potentially to help their transfer business this summer under their new manager Marti Cifuentes

www.leicestermercury.co.uk

We covered this on here before the season started. It was why I thought they would struggle this season as the loans were needed just to keep them going. They have even cashed in future transfer fees due to them.

It shows there are serious cashflow problems. The Australian bank lending all this money must be making a fortune, but it leaves Lesta just getting what are effectively stays of execution.

It also raises the question over whether their owner actually has any more funds of his own to inject.

 

[Grendel]

Loaning against future earnings isn’t that unusual. Burnley did similar a couple of years ago

 

[Brighton Sky Blue]

Loaning against future earnings isn’t that unusual. Burnley did similar a couple of years ago

I suspect that Burnley's operating costs were significantly less than Lesta's are at the moment.

 

[HadjiChippo]

Leicester City handed financial boost for potential summer transfer push

The club have taken out another loan with Australian bank Macquarie, potentially to help their transfer business this summer under their new manager Marti Cifuentes

www.leicestermercury.co.uk

We covered this on here before the season started. It was why I thought they would struggle this season as the loans were needed just to keep them going. They have even cashed in future transfer fees due to them.

I knew about the transfer fees, but didn’t realise they’d leveraged all of their parachute payments.

You’d think parachute payments would be protected from that sort of agreement, considering the reason they’re delayed over several seasons is to guarantee income for clubs whilst they are rearranging their club to cope without premier league revenue.

At this point, it looks like administration is more a case of when and not if, relegation would just speed up their demise.

 

[Grendel]

I suspect that Burnley's operating costs were significantly less than Lesta's are at the moment.

no idea but their loan was supposed to be paid on relegation and wiped out their parachute payments