Captain Dart
Well-Known Member
Enter insane person stage left.
Leicester deducted fifteen points (18 Viewers)
- Thread starter Leicesterfox
- Start date
SkyBluePower
Well-Known Member
Correct . He doesn’t do any real detail anymore, just the same highlights from accounts.
Lamps
Well-Known Member
For the amount of money you would need to take over Leicester who look to be heading for L2 you could buy a much more promising club and have money left to invest.
How much do we think King would accept for our club?
Gleneagles65
Well-Known Member
Foxes never quit. Millwall have a tough match tomorrow.
Milan's hair dye
Well-Known Member
Woohoo
My tat arrived
My tat arrived
fernandopartridge
Well-Known Member
You sound like one of their myopic arsehole fans of a few years ago
Lamps
Well-Known Member
And you are one of those myopic aresole fans from a few years ago.
Isn't it amazing that the same old names come out in defence of the same old names that don't have a clue.
Lamps
Well-Known Member
Same old, same old.
Instead of all these personal attacks like always happen on this place can we just bookmark all those that don't have a clue but are known as sheeple?
Those who think that Leicester will be OK just say so. I'm on the side that says they're in deep trouble. Had enough of the bullshit arguments that happen on here.
Instead of all these personal attacks like always happen on this place can we just bookmark all those that don't have a clue but are known as sheeple?
Those who think that Leicester will be OK just say so. I'm on the side that says they're in deep trouble. Had enough of the bullshit arguments that happen on here.
Calista
Well-Known Member
Are we saying that the bank, having gambled and lost by lending ~£100m to a grossly incompetent football club, would take most of the hit? And some new owner could pick up the club, stadium, training facilities etc. for peanuts, and start the whole cycle again with just a few temporary sanctions like transfer restrictions / points deductions?
Lamps
Well-Known Member
He is one of a few on here that doesn't mind looking an idiot in an attempt to try and look intelligent.
Macquarie bank specialises in giving loans to football clubs. There's clubs all over the country that use them, but normally used for short term cash flow. For example when we sold Gyokeres and Hamer we waited for the payments to come in but could have gone to them and had the money in advance.
The problem for Leicester is they took the money in advance for future parachute payments plus a lot more. It looks like they have also taken out loans against the football ground and the training ground. They don't have the money to pay for the poor quality players they still have installments to make. Top, their owner is skint. His family is rich but won't give him the couple of hundred million he needs.
For Macquarie bank to get their money back they would have to take legal action. Leicester will also have to find a massive amount to pay their tax bill.
Leicester City Phoenix Club
Well, never thought we'd be here - but could be nearer than we think by the looks of things. Some pretty interesting information on the FSA's page: https://thefsa.org.uk/fan-resources/resource-training/community-owned-clubs/setting-up-a-new-club/ Time for Leicester Fosse FC?
www.foxestalk.co.uk
Their own supporters know how difficult the future looks.
Hutch11
Well-Known Member
That has got to be the most Alanis Morissette moment we've ever had on here
Para1140
Well-Known Member
Well done that man and very well written they believe it
If Top *did* sell - who do you think might buy the club?
The leading Leicester City forum. Discuss all the latest news, games, transfer rumours and general football with LCFC fans.
www.foxestalk.co.uk
covcity4life
Well-Known Member
Liquidation or not they r in big financial trouble and the immediate future is a real worry for them.
But everyone was having a laugh at Leicester so a contrary viewpoint had to be put across as usual
But everyone was having a laugh at Leicester so a contrary viewpoint had to be put across as usual
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Colin Steins Smile
Well-Known Member
There’s a hedge fund called SISU that likes buying distressed companies. 
KenilworthSkyBlue
Well-Known Member
The administrator doesn't even get a say really, or rather their say is heavily constrained by the FCR. Football-related debts must be paid in full before non-football creditors when a club enters administration. Therefore, given they supposedly still owe over £80m in transfer instalments that would be the first port of call, along with wages etc.
CCFC_Irish
Well-Known Member
Ignoring the first paragraph, take the first letter of every paragraph and you have yourselves a little hintWell done that man and very well written they believe it
If Top *did* sell - who do you think might buy the club?
The leading Leicester City forum. Discuss all the latest news, games, transfer rumours and general football with LCFC fans.
Grendel
Well-Known Member
If the club goes into administration there’s a hierarchy of who gets what. As someone said it’s football creditors first.
The best fairly recent example of a big club facing league one and administration is Southampton who ironically rejected Sisu and thrived afterwards
KenilworthSkyBlue
Well-Known Member
He is one of a few on here that doesn't mind looking an idiot in an attempt to try and look intelligent.
Macquarie bank specialises in giving loans to football clubs. There's clubs all over the country that use them, but normally used for short term cash flow. For example when we sold Gyokeres and Hamer we waited for the payments to come in but could have gone to them and had the money in advance.
The problem for Leicester is they took the money in advance for future parachute payments plus a lot more. It looks like they have also taken out loans against the football ground and the training ground. They don't have the money to pay for the poor quality players they still have installments to make. Top, their owner is skint. His family is rich but won't give him the couple of hundred million he needs.
For Macquarie bank to get their money back they would have to take legal action. Leicester will also have to find a massive amount to pay their tax bill.
Leicester City Phoenix Club
Well, never thought we'd be here - but could be nearer than we think by the looks of things. Some pretty interesting information on the FSA's page: https://thefsa.org.uk/fan-resources/resource-training/community-owned-clubs/setting-up-a-new-club/ Time for Leicester Fosse FC?
Their own supporters know how difficult the future looks.
I think you’re getting confused. Macquarie will at least be partly repaid because the loans are secured against future income streams (e.g. Premier League and parachute payments). As those revenues come in, they’re used to service the debt, unless it’s refinanced of course.
The issue for Leicester is that once those revenues are committed, they’re effectively gone before they even arrive - leaving them facing a situation where as a club it simply can't fund its day-to-day operations. Basically like this season as once the 26/27 parachute payments come in, they're already spent.
Lamps
Well-Known Member
They've rolled over the debt. Also, it has been said that loans have been taken with security being the stadium and training ground but we have to guess that situation.
Their big remaining problem is they still have 4 players on massive wages they can't get rid of. Their wages alone are well over the average squad wage bill.
They've already had next years parachute payment from Macquarie bank. It was needed to get them through this season. Of course we don't know how much they have left of it but it isn't thought to be a lot.
Lamps
Well-Known Member
Which is why the taxman is a danger to them.
CovRes
Well-Known Member
And HMRC.
KenilworthSkyBlue
Well-Known Member
There's no evidence in Companies House to suggest Leicester City has simply 'rolled over' a single Macquarie loan in one continuous, uninterrupted form.
Instead, the filings show a series of secured financing arrangements with Macquarie over time, with charges being created and later satisfied or replaced. Some of this debt may be refinanced, although that is not explicitly disclosed in the accounts and instead is inferred from the pattern of charges being replaced over time.
In terms of the four players they can't get rid of KP is out of contract, as is Daka. Winks is still under contract and I would've thought Vestergaard would be within that aforementioned four who's also still under contract.
I know they've already had next season's parachute payment from MB - I literally said that in my post....?
Grendel
Well-Known Member
They are still below the football creditors
KenilworthSkyBlue
Well-Known Member
Football creditors are actually ahead of HMRC in the hierarchal order IIRC.
HuckerbyDublinWhelan
Well-Known Member
Isn't this where the argument is? Legally they are but in terms of football they're not, thats why teams get bigger points deductions because the football rules mean football creditors are preferential, but legally HMRC are?
SonofErnie
Well-Known Member
It depends whether you're looking at the legal position or EFL rules. There seems to be a conflict between the 2.
Grendel
Well-Known Member
I think the deduction is based on the amount the approved bidder offers secured creditors. SW will get a big points penalty next season as the offer falls well below the amount the EFL have as a set benchmark which I think is 25p in the pound
KenilworthSkyBlue
Well-Known Member
It’s a huge grey area, to be honest, where effectively football regulation sits alongside insolvency law and, in practice, can lead to outcomes that don’t always match what creditors would normally expect in other industries.
Hence why HMRC kick off now and again claiming they've lost millions as they argue it can leave tax liabilities unfairly exposed.
CovRes
Well-Known Member
To get your EFL/EPL golden share back you have to pay to your football creditors. But this has no basis in law.
Everything covered by law is explained here.
What is the priority order of creditors in an administration process?
The nature of insolvency means that not all creditors can be repaid, and so there is a priority order of creditors for repayment in an administration process.
www.realbusinessrescue.co.uk
alexccfc99
Well-Known Member
I read somewhere that Nottingham Forest want to buy it off them, it is as close to the City Ground as it is The King Power
Leicester still own their old base for the women + academy so would move operations back there
KenilworthSkyBlue
Well-Known Member
To get your EFL/EPL golden share back you have to pay to your football creditors. But this has no basis in law.
Everything covered by law is explained here.
What is the priority order of creditors in an administration process?
The nature of insolvency means that not all creditors can be repaid, and so there is a priority order of creditors for repayment in an administration process.
It has no basis in law, but equally it's not deemed as unlawful. In 2012 the High Court ruled it neither breached the pari passu principle or the anti-deprivation rule as it's not a deliberate attempt to evade insolvency law.
CCFC_Irish
Well-Known Member
Haven't they recently spent a few million redeveloping their own facilities? Does it not come with insane maintenance costs?
KenilworthSkyBlue
Well-Known Member
Yeah, they’ve only just put serious money into redeveloping their new training ground, so I’d be surprised if Forest even looked at it. On top of that, they’re already trying to finance a new stadium, so it’s hard to see them adding another major cost like an expensive training facility they don’t really need.
Otis
Well-Known Member
That's ironic and a jagged little pill to swallow.
Lamps
Well-Known Member
There's also Faes, Choudhary and Cordova-Reid in massive wages with another year left. Then you have players like Skipp who have a couple of years left on their contracts.
