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Are you reading this Mr Ridsdale???
sheepy
Posts: 10392
Joined: 08 October 2008
Location: Rothwell
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Nov 26, 2008 20:55
Are you reading this Mr Ridsdale??? Leeds United today announced profits of 4.5 million, at last the dark days of debt are over...
CLICK HERE FOR OFFICIAL STORY
Now we need some good news on the pitch too... maybe we can invest a bit of that in maybe a defender???
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bogdan
Posts: 9902
Joined: 08 October 2008
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Nov 26, 2008 21:50
Quite refreshing news really and testament, I think, to the fact that, properly run, this club can very well function on itself, without tycoon investment and even as low as the third tier of English football.
Interesting bit this:
Off the field, the directors have identified that the re-purchase of both the Thorp Arch Training Facility and Elland Road as a priority within the next 12 months.
I wonder if it's also achievable. I'd be happy to see TA and ER back in our possession even as late as in 5 years time.
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Inthegenes
Posts: 242
Joined: 16 October 2008
Location: Ottawa, Canada
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Nov 27, 2008 00:47
I agree B. I think a 5 year time line is a realistic target for the reaquisition of those properties. I have a hard time imagining they are attainable within 12 months but I'm at least encouraged by the club's intentions. Now we just need a team at the league level appropriate to such facilities.
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Ricardo Da Lepp
LUFCTALK MODERATOR
Posts: 458
Joined: 16 October 2008
Location: Norfolk
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Nov 27, 2008 01:59
A few weeks ago, the club said that the lease-back arrangement at Thorpe Arch had been put together in such a way that we have to buy it back this season. I think the figure mentioned was around the 4.5 million region (? maybe a bit more). Hence that is a priority.
The ground rental arrangements are proving very expensive, and repurchasing it could well be a good move, if the capital can be raised. At least the money would then be going back into the club, rather than the ground owners' pockets.
It suggests there will not be much spare cash for new players but I like the idea of keeping the club infrastructure intact. If Ken wants to raise some money to repurchase the ground, now may not be a bad time to do it, with base interest rates being at an all-time low.
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MonacoWhite
Posts: 70
Joined: 11 November 2008
Location: Monaco
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Nov 27, 2008 10:03
True Ricardo. But are the banks willing to lend any money in this climate to a football team in Division 1? It is tough enough getting refinancing for solid businesses who are having cash flow problems. I imagine that footie clubs are not top of the list for lending right now, particularly with the collapse in advertising - which is central to TV and sponsorship deals.
What's the alternative for the Thorpe Arch owners? Is there anyone willing to buy this from them now? Doubtful in this property market. Is there anyone else willing to lease it from them on such inflated lease terms. Again, doubtful - who wants a premiership training facility in the area and is willing to pay for it. I believe that the Thorpe Arch owners, in this market, will have their own financial concerns in this climate, particularly if they have a large property portfolio.
As for the 4.5 million. I would put that straight into team strengthening. The priority is to get back. This should be above any other consideration. If that means, we have to forego facilities which are beyond are circumstances, then so be it. Promotion, above all else.
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sheepy
Posts: 10392
Joined: 08 October 2008
Location: Rothwell
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Nov 27, 2008 11:30
Its a classic catch 22 we are in...
If we buy back Thorp Arch but stay in League One we have a mediocre team playing in the lower reaches of the football league...
OR
We strengthen the squad, lose Thorp Arch and eventually have a decent team that has poor training facilities...
If we win promotion we will have enough investors to raise the TA cash, hopefully the cut off point gives us some breathing space between going up and the deadline to buy TA expiring...
IMO, we need a team playing in the Championship (at very least) for the club to go forward and fully recover from the mismanagement of the Risdsale era..
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DunLaoghaire White
Posts: 214
Joined: 14 November 2008
Location: Dun Laoghaire, Co. Dublin
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Nov 27, 2008 15:01
This bit of good news probably puts us as one of the wealthiest clubs in the country as all the others seem to be in debt. If FIFA get their wat we might be one of the only clubs allowed to play in Europe. Roll up, roll up mega rich Russian tycoons Papa Smurf is waiting for your lolly!
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Ricardo Da Lepp
LUFCTALK MODERATOR
Posts: 458
Joined: 16 October 2008
Location: Norfolk
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Nov 27, 2008 17:49
MonacoWhite
But are the banks willing to lend any money in this climate to a football team in Division 1? It is tough enough getting refinancing for solid businesses who are having cash flow problems. I imagine that footie clubs are not top of the list for lending right now, particularly with the collapse in advertising - which is central to TV and sponsorship deals.
What's the alternative for the Thorpe Arch owners? Is there anyone willing to buy this from them now? Doubtful in this property market. Is there anyone else willing to lease it from them on such inflated lease terms. Again, doubtful - who wants a premiership training facility in the area and is willing to pay for it. I believe that the Thorpe Arch owners, in this market, will have their own financial concerns in this climate, particularly if they have a large property portfolio.
As for the 4.5 million. I would put that straight into team strengthening. The priority is to get back. This should be above any other consideration. If that means, we have to forego facilities which are beyond are circumstances, then so be it. Promotion, above all else.
Thorpe Arch is vital to the club's future. That facility will continue to produce quality players who will be our future. We might lose a generation of talent if we stay in this league, but we'll still have the facility to create the next. The club infrastructure is absolutely essential.
The banks shouldn't be willing to lend to clubs in the current climate, and those advocating prudent banking practices would agree. The situation has now changed though, as the government has a vested interest in many of the banks. Incredibly, the banks have been ordered by the government to relax their lending criteria - effectively removing safeguards against further bad debts - to encourage more borrowing again. For those working in banking it is an impossible situation. The cause of this situation was irresponsible lending (mainly in the U.S.), and now they are being forced to do it, as they have government imposed targets that they have to meet.
That being the case and with interest rates being the lowest they have been for years, I think they might well lend to a business like Leeds, if for no other reason than to hit a lending target.
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MonacoWhite
Posts: 70
Joined: 11 November 2008
Location: Monaco
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Nov 28, 2008 11:18
Funnily enough, I agree that ,given the pressure being applied to the banks to lend, they just might well end up giving consideration to lending for the purchase of Thorpe Arch. That said, our credit risk rating must be high, notwithstanding this year's profits.
Where I disagree Ricardo, is the idea that Thorpe Arch is funadamental to our future. If we lose a generation by staying in this division, we will also lose a generation of fans. So many of the generation after me just started following Man U or Liverpool, after we were relegated in the early 80's. Also, we cannot afford to stay away from the top of the Premiership and Eurpean football for much longer. The top 4/5 plough vast fortunes into their academies, and will simply come to Leeds to pick the cream of the crop from Thorpe Arch whenever a prospect looks worthwhile.
If we were to wait another 10 years before we get back to Premiership football, the chances of catching up may very well be gone - the top 4 will be more and more involved in lucrative European football and we will be sidelined. I understand and to a degree agree with your sentiments, but both from a business and fan perspective, I would concentrate my capital on structuring the club towards rapid promotions. The continuing commitment to TA is a fiscal drag on our ability to invest in the squad in this respect. If it was up to me, I would ruthlessly limit every single peny spent to one question "will this penny materially contribute to promotion to the Premiership by 2011/2012"?
I guess its the age old business dilemna of how much you invest long term and how much your driver is short term goals. In this case, I would put promotions as the priority, for the next two/three years; after that, and with the likely injection of real external investment and capital upon promotion, I would then start inctreasing the proportion of my expenditure to longer term ends eg. TA.
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