Comments by "Baresi-Unico-Capitano" (@recruitmentch) on "Leicester's owners King Power relieve club of £194m debt" video.

Remind me again how much money man utd have spent on new players over the past decade?!
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Remind me again how much money man utd have spent on new players over the past decade?!
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It doesn't get away from the worry of running up nearly £200m in debts. Why has it got to that stage? With FFP rules in place, shouldn't they be punished for financial mismanagement?
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@Jeff-ke3nd but clearly wasn't thought thru investment as Leicester then weren't able to bring in the investment to offset that debt!
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@Jeff-ke3nd you're not quite seeing the bigger picture. FFP taken into account money spent on transfer fees, wages and agent's fees. what is happening here is effectively cheating of that very system. in this case, 200 million of losses have been written off. That's effectively a bailout. If this was a 'normal' business, procedures would have to be put in place to allow them to repay that 'loan'. In that period, it would then be almost comical to allow the club to spend money on players. But Leicester have effectively had 200m written off due to not bringing enough money to repay it, all the way leaving their revenue to deal with the 70% threshold for FFP. Sorry to say but that is financial fraud. It is 'writing off' losses on one side to allow the other side to continue like nothing has been done wrong. The punishment I speak of in this case should be from the FA.
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@Jeff-ke3nd Are you running on repeat or somehow failing to understand how running a business works? Their revenue fell to £214m for the year 21/22. A sensible business takes a loan to invest in a part or entire business knowing it can repay the loan. Otherwise every man and his dog would be out there taking huge loans from banks etc, without the worry of having it paid off. If the loan was from a bank and Leicester city couldn't pay it, what would happen? The size of that that debt is only a little below their entire year's revenue. 70% of 214m is basically £150m. Leicester's wage bill alone is just short of £106m. That leaves less than £45m for transfers, agent's fees. And then only a few £65m for the entire operations of the football club. Clearly, the owners realised that the reduced revenue will not allow then to run at a profit unless the massive debt is cleared. Cleared not thru earnings, but a write off. This is a bailout. And a bailout is exercised when a company is running at a loss.
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