More BCC ways to get around PSR.

[DagenhamFox]

From the BBC article about Yanited:

"Even without European football they [United] could spend £150m without breaking into a sweat," Maguire told BBC Sport.

"The picture that has been painted of Manchester United's finances has exaggerated the negativity. They make more cash on a day-to-day basis than any other club in the Premier League.

"The club does not lose as much money as is claimed and their position is far better than everybody is looking at because everybody is looking at the wrong company.

"Everybody is looking at the New York company - Manchester United plc but there is another company called Red Football which is owned by the Glazers and that is forming the basis of the PSR calculation.

"The losses at Red Football Ltd are far lower than they are at Manchester United plc so therefore the extent of the damage is far less than originally envisaged."

 

[HughJanus]

The only conclusion can be the rules were intended to ensure the BCCs have sufficient loopholes to effectively render them pointless

 

[Will Hay]

The only conclusion can be the rules were intended to ensure the BCCs have sufficient loopholes to effectively render them pointless

As Groucho Marxs pointed out in every contract has a Sanity Clause.

 

[Hampshirefox]

As Groucho Marxs pointed out in every contract has a Sanity Clause.

Unless Mr J Rudkin is involved

 

[wints]

On a serious note, who owns the KP, Seagrave, Belvoir Drive. If its LCFC, can't we sell them to King Power or some other related party. I know we'd then have to pay a fee to use them, but surely it would help. If KP already own them then clearly it a trick were already used.

 

[buz_not_buzz]

On a serious note, who owns the KP, Seagrave, Belvoir Drive. If its LCFC, can't we sell them to King Power or some other related party. I know we'd then have to pay a fee to use them, but surely it would help. If KP already own them then clearly it a trick were already used.

All of them are assets on LCFC's books (though the stadium is actually on HP from a KP holding company). Any sale can only help from a PSR perspective if they generate a profit (e.g. Seagrave carried a value based on historical cost of £103m in 2024 so any sale would need to be in excess of that minus any subsequent depreciation) but as an associated party transaction they would need to demonstrate that it was sold for market value which seems unlikely.

And, ironically given the "sustainability" part of "PSR", it doesn't seem a move that would help the long term sustainability of the club as they are our major assets and for all of the financial assistance KP have given us I am not sure I would be comfortable with them holding them.

(And, no, I don't know the ins and outs of the Chelsea Hotel deal)

 

[buz_not_buzz]

From the BBC article about Yanited:

"Even without European football they [United] could spend £150m without breaking into a sweat," Maguire told BBC Sport.

"The picture that has been painted of Manchester United's finances has exaggerated the negativity. They make more cash on a day-to-day basis than any other club in the Premier League.

"The club does not lose as much money as is claimed and their position is far better than everybody is looking at because everybody is looking at the wrong company.

"Everybody is looking at the New York company - Manchester United plc but there is another company called Red Football which is owned by the Glazers and that is forming the basis of the PSR calculation.

"The losses at Red Football Ltd are far lower than they are at Manchester United plc so therefore the extent of the damage is far less than originally envisaged."

The devil will be in the detail but I'm not sure that this is about getting around PSR. It seems to me that all Maguire is saying is that people are looking at the wrong accounts in relation to what United can afford from a PSR perspective, mainly I suspect because most people - Utd fans especially - and with good reason more concerned with how the club is owned & operated (though that might also indicate what we all know: PSR is not fit for purpose).

 

[2 Pints of Lager]

Why can't we just sell the ground, both training grounds, and the women's team to a sister company like Chelsea have done

 

[courtslcfc]

Why can't we just sell the ground, both training grounds, and the women's team to a sister company like Chelsea have done

Unfortunately, as far as I can tell and happy to be proven wrong, EVERYTHING is under one company King Power.

King Power isn't an umbrella company where we could "Sell" to the horse racing branch. As we all are under the same roof, therefore transferring ("selling") within the overall company would be nigh on impossible.

 

[Weller]

Why can't we just sell the ground, both training grounds, and the women's team to a sister company like Chelsea have done

Honestly, how much would the women's team be worth?? And as for the old training ground surly that's got to have some equity tied up in by now! Unless they've done something stupid along the way?

 

[buz_not_buzz]

Unfortunately, as far as I can tell and happy to be proven wrong, EVERYTHING is under one company King Power.

From the accounts:


I am sure if you have the time you could go and draw up a "family tree" of all the companies that fall under V&A Holdings Company Limited. Leicester City Football Club Limited is both a company in itself and a group in that it consolidates with Leicester City Women Football Club Limited (and I believe this is what reports for PSR). I guess they could find another legal entity within the wider group to buy things if they really wanted.

BUT...

Really? From a long term sustainability perspective people want us (the football club) to sell (and lose control of) our major assets even if to another company within the same current controlling group? What is it that we are trying to achieve? A one-time injection of cash even though the owners have been doing that regularly already or to generate profit to escape PSR issues? How much profit could we realistically make on disposing of the stadium (£45m as at 2024), the training ground (£103m as at 2024) or Belvoir Drive (£10m as at 2024) and what additional costs would that leave us with?

 

[Popside]

You lads on ere really know business stuff especially Regarding our football club , I’ve been going 50 years and still dine out on the knowledge of knowing mark wallington likes gardening . I THINK