Who or what was the turning point for Leicester City ?

[Jordinho]

Quite the achievement, winning both the Premier League and the Premiership.

 

[camspur]

Quite the achievement, winning both the Premier League and the Premiership.

He's obviously seen Huth playing.

 

[jts1882]

I think I have the answer to the thread title question:

Leicester City and the strange finances behind their rise to the Premier League pinnacle
• Leicester sold sponsorship rights to company which sold them back to owners
• Football League investigating amid concerns club appear to have broken rules

David Conn
Monday 11 April 2016 12.56 BST Last modified on Monday 11 April 2016 13.25 BST


Leicester City’s dash to an unlikely Premier League title is billed as football’s most romantic story in a generation but the Football League is still investigating the club’s 2013-14 promotion season, amid strong concerns from other clubs they may have cheated financial fair play rules.

The club’s owner, the billionaire Thai businessman Vichai Srivaddhanaprabha, who owns his country’s duty-free company King Power, bankrolled Leicester’s rise from the Championship with more than £100m after he took over the club in 2010.

The investigation centres on a deal Leicester say they did in January 2014 with a company called Trestellar Ltd, to market the club in the UK and south-east Asia. That deal immediately produced an apparent £11m increase in Leicester’s sponsorship and commercial income, reducing the club’s loss from £34m the previous year. In the club’s most recent accounts, for 2014-15, Leicester say Trestellar sold the club’s main sponsorships – the name on the players’ shirts and the stadium – to King Power, the club’s owners.

The Thai owners were already sponsoring the shirt and stadium before the Trestellar deal; in 2012-13 Leicester’s sponsorship and other commercial income was £5.2m. After the Trestellar deal, with King Power still holding the same main sponsorships, the income immediately jumped to £16m.

That substantially reduced Leicester’s loss, which was otherwise likely to have resulted in a large fine under the Football League’s then new financial fair play rules by which all clubs agreed to cap losses at £8m to try to reduce excessive spending on players’ wages. Losses under FFP rules are not reduced by a club owner paying money to the club, or by doing so via sponsorship, if the amount paid is clearly inflated beyond market value.

Leicester still say Trestellar paid the club for the rights to market their brand, then sold the sponsorships to the owners. The resulting smaller loss – £21m in 2013-14, including expenses clubs are allowed to offset – meant Leicester argue they complied with FFP rules and no sanction should be applied. Some other clubs are furious, arguing they reduced spending on players to comply with the rules while Leicester overspent on players’ wages, achieved promotion and have since resisted any sanctions.

Leicester’s 2013-14 accounts state they spent £36m on players’ wages, £5m more than the club’s entire income – the goalkeeper Kaspar Schmeichel, the captain Wes Morgan, the prolific striker Jamie Vardy and other core players were already on the payroll then – although Leicester said £9.4m comprised bonuses paid on promotion. During the season, in January 2014, Leicester signed Riyad Mahrez from Le Havre for a reported £560,000, and the Algeria midfielder has since been instrumental in Leicester’s promotion and remarkable Premier League turnaround.

Trestellar, the company which produced this immediate increase in sponsorship and commercial income – vast for a Championship club – was a newly formed company. It was set up on a Sheffield trading estate by the son and daughter of Sir Dave Richards, a former Premier League chairman. Richards had close links to Leicester’s Thai owners (his Thai football contacts also included having previously become acquainted with the country’s ousted prime minister, Thaksin Shinawatra, who became Emirates Marketing Project’s owner in 2007).

In June 2013, Richards was reported to be advising Leicester about how to comply with FFP, although his son, David Jr, rejected as “paper talk” reports his father would become Leicester’s chairman.

Trestellar, then and still, have no website nor telephone number. At the registered address – 6 Shepcote Office Village, on a main road in Sheffield, there is no Trestellar presence or sign. Asked by the Guardian why the company has no telephone number or website, Richards Jr, who runs a print, design and marketing company, Glue, from the same address, replied: “Why would we need one? We are very busy, we are relatively well known and in the networks in which we move, we are known to the people we wish to be known to.”

Leicester said last year they agreed their “exciting international marketing and licensing partnership with Trestellar Limited ... following an extensive tender process to identify a party best-suited to extending its commercial reach worldwide”. The club declined to answer any questions about the Trestellar deal or this tender process, and what considerations resulted in the new company in Sheffield set up by Sir Dave Richards’ family members winning the rights to market the club in south-east Asia.

Richards Jr told the Guardian he could not discuss the deal, how and why King Power remained the club’s sponsor, or what other income Trestellar has brought in, saying he was bound by client confidentiality. However, he said Leicester’s accounts and those of Trestellar – which showed £808,000 profit and £4m cash in the bank last year – demonstrated the “positive impact” Trestellar has had. Asked if his father had been influential in securing the deal from Leicester, Richards Jr said: “It is fair to say my dad is and continues to be on the world sporting stage.”

Richards Jr confirmed the name Trestellar echoes his father’s former engineering company, Three Star Engineering, which went into administrative receivership in 2001. Shortly before that, Richards resigned as the chairman of Sheffield Wednesday, who were facing relegation from the Premier League, and was appointed the Premier League chairman on an initial salary of £176,667. He stepped down in 2013 and now does consultancy for contacts, his son said.

The Football League has stated for more than a year that it has not cleared Leicester’s 2013-14 finances and told the Guardian that Leicester remains an “ongoing matter”.

Senior figures at Championship clubs say shirt sponsorships in the division earn between £250,000‑500,000, and it is difficult to sell stadium naming rights at all. Leicester’s local rival, Derby County, who have a bigger stadium capacity, recently sold their naming rights to iPro, a sports-drink company, for £700,000 a year.

One owner of a club in the Championship in the 2013-14 season, who did not want to be named because he said the league investigation has to run its course, said: “What Leicester did looks like financial doping by the owners, while other clubs were complying with the rules we all agreed.” A senior director of another 2013-14 Championship club, who also did not want to be named for the same reason, said he believes the Trestellar deal looks like a means of cheating the FFP rules.

Damian Collins, the Conservative MP on the House of Commons culture, media and sport committee, said: “Leicester should answer the questions publicly, to explain this arrangement, which looks unusual to say the least, to reassure people it was not an attempt to evade the FFP rules.”

Leicester did not answer any of the Guardian’s specific questions about the deal. A spokesman said: “The club submitted a compliant FFP return to the Football League in relation to the 2013-14 season. The Football League has subsequently requested certain clarifications, which have been provided. The club is confident that it has complied with the Football League FFP regulations during that season and no material liability will arise from this process.”

Questions Leicester City have yet to answer about their 2013-14 accounts and deal with Trestellar Limited
• The arrangement looks as if King Power’s sponsorship of the stadium and club shirt is being routed through Trestellar. Why would this be the case?

• What service is Trestellar providing to the club, if it has a licence to sell marketing properties, which it then sells to the club’s own owners? How much worldwide marketing expertise has that involved?

• How much is King Power paying for the sponsorship and naming rights? Has this been a significant uplift from 2012-13?

• Has Trestellar brought in any other income from its marketing deal, besides these sponsorships by King Power? If so, what are the deals, and what are their values?

• What was the nature of the “extensive” tender process, which resulted in Trestellar becoming the licensee?

• Referring to the club’s “due diligence” done on Trestellar: who carried out this due diligence, and what elements was the club “entirely satisfied” with?

• Is this the basis of the ongoing discussions with the Football League: whether the Trestellar deal and income from sponsorships is a genuine arms-length transaction, or in reality investment by the owner, King Power?

 

[Glenda's Legs]

I think I have the answer to the thread title question:

I need to read that again but, if I understand this right :

• LCFC owner, via his King Power business, already sponsored the stadium/shirts.
• LCFC owner then did a deal with a third party company to market the commercial naming rights of the stadium/shirts.
• Said third party company then sold these rights to King Power (owned by LCFC owner) even though they were already the sponsors.
• Sale of the commercial naming rights back to LCFC owner (who already had the rights anyway) allows LCFC owner to invest £11m back into the club without it seeming like owner-investment outside of FFP rule?

Sounds extremely murky.

No indication that I can see of when the Football League inquiry will complete?
If deemed to be in breach of FFP, can the Football League impose a fine/point deduction on a PL team? Would it be the FA or UEFA that decide?

Will probably come to nothing in any case.

 

[Baleforce]

It's the same thing City are doing but without the layers of shell companies in between

 

[glasgowspur]

Rather surprising that a few negative stories are starting to come now. In true British style the media have built them up and are now getting ready to knovk them down.
Thought they would have waited until after the fairytale ending.

 

[scaramanga]

Rather surprising that a few negative stories are starting to come now. In true British style the media have built them up and are now getting ready to knovk them down.
Thought they would have waited until after the fairytale ending.

 

[monkeybarry]

I need to read that again but, if I understand this right :

• LCFC owner, via his King Power business, already sponsored the stadium/shirts.
• LCFC owner then did a deal with a third party company to market the commercial naming rights of the stadium/shirts.
• Said third party company then sold these rights to King Power (owned by LCFC owner) even though they were already the sponsors.
• Sale of the commercial naming rights back to LCFC owner (who already had the rights anyway) allows LCFC owner to invest £11m back into the club without it seeming like owner-investment outside of FFP rule?

Sounds extremely murky.

No indication that I can see of when the Football League inquiry will complete?
If deemed to be in breach of FFP, can the Football League impose a fine/point deduction on a PL team? Would it be the FA or UEFA that decide?

Will probably come to nothing in any case.

Harks of a Marseille type situation.
Retrospective relegation in a few years time

 

[StephenH]

We should get him a white Persian cat

 

[milo]

In answer to the question in the thread title, I think that giving them their own thread was a big mistake and sealed their position at the top of the table.

 

[Jordinho]

http://www.foxestalk.co.uk/forums/topic/100927-premier-league-201516-stuff-it-in-here/page-597

They go on and on about what bitter tacos we are, then we score. No bitterness there

 

[Raziel]

http://www.foxestalk.co.uk/forums/topic/100927-premier-league-201516-stuff-it-in-here/page-597

They go on and on about what bitter tacos we are, then we score. No bitterness there

honestly, let them enjoy it for what it is

- a one off, jammy season where everything went right, 8 players had the season of their life, they dropped out of cups early, no real injury issues and they caught a whole lot of sides at their worst points in form, good for them.

However, no question who will be competing for CL spots next season and who won't out of them and us.

If I was Ranieri (and they did win the PL), I would retire ... otherwise you will just prove what everyone knows, it was a fluke ..

 

[7percent]

I think we have to accept Leicester are decent now (if they can keep this team together) I would expect them to be overtaken by us, city, arsenal etc next season but I can see them being in and around the top 6 for the foreseeable future.

 

[Rorschach]

I think the legacy of this season for Leicester will be an extended stay in the PL. That in itself will be an achievement for a club that all too frequently flirts with relegation.

Mahrez will attract some very big offers and will likely move on, and that one transfer in itself will send them back to mid-table me thinks. But even if he leaves they'll probably buy enough quality to consolidate their position among the mid table regulars (like Liverpool ).

 

[Jordinho]

Trawling the web this week and it's been delightful reading:

If Vandy's **** chatting to Moss gets Leicester City banged and Spurs will the title I will honestly stop watching football.

It wont be hard to do. I stopped watching WWF once I found out it was grown men acting out storylines so I do the same for the EPL.

Just pictured Spuds winning the title and almost died of anxiety. This season has been an actual nightmare.

Hope Vardy is out for 3 games. They'll **** the bed without him I reckon, would be hilarious.

If they don't win the league it'll be a even greater bottlejob than anything we've ever managed, would be ****ing hilarious if Spurs weren't next in line for the title.

Wouldn't feel as **** to me as it would for you guys tbf. I don't mind Spurs as much as Chelsea or City. I don't want them to win but Leicester have kind of done the same to me as Liverpool did to a lot of people a few years ago. The narrative in the media just gets tiring and I'm not pretty much sick of them.

I think Spurs' got a much more likable team right now though. A bunch of hard working players - like Leicester - just without the racist chav leading the line.

Obviously I know I'm in the minority with this opinion and I'd be surprised if any of you felt the same, lol.

you arent.

Aston Villa:

I want Spurs to win it. I am not ashamed.

Can't see it happening, though.

A sick part of me wants them to win the league now. An idea that appals me, but the Leicester City fan I know on Facebook, is that annoying and one eyed, that I'd love to see his world cruched.

I'd actually quite like to see Leicester implode for badness.

I would really enjoy Leicester losing the title purely because it would go down in history as Jamie Vardy costing them the league.

That kind of thing can destroy a man. Hopefully.

If he wasn't blessed with the natural pace you and I know full well he would be glassing people outside of nightclubs and mugging old grannies for their fish supper.

Chelscum:

Without a shadow of a doubt, if Leicester needs to beat us to stop Spurs or Arsenal winning the title we chuck the game.

Palace:

Do you know what? I really wanted Leicester to do it. I was really behind a small team coming from nowhere and doing it. But after this weekend they can stick it.

Between stealing all our songs, plastic clappers and claiming to have the best atmosphere, Vardy's horrible Jeremy Kyle attitude, and the absolute complacency and outrage at the ref for daring to go against them they can stick it.

I rem when we lost to them at their gaf and they were lucky with pens not given against them

Everton:

Martinez out!

Liverpool:

Next season is our year lads.

United:

Completely pi##ed me off at the time and still does. After he shoves Rafael, you see him make sure he gets in the box then slow down and look for Rafael to "invite" contact.... no attempt to keep going towards the goal.

We were coasting that game..... start of our downfall.... would have won the league if it wasn't for Vardy

underdogs dosn't make it right.He obviously abused the ref too.He deserves a 3 match ban.
Hope we finally kick into form and hammer them when they come to OT.
I don't care for fairytales.

Norwich:

Finally a referee noticed the cheeky b.....d diving and booked him. Very similiar to the one at CR. I believe Leicester have had nine penalties this season Nuff said.

His diving, part of their success, could ironically now be their downfall.

I'm one of the few, it seems, who would prefer to see Tottenham win the title and it's got that little bit closer after last night.

But its Leicester, little old Leicester, fairy-tale Leicester, breath of fresh air Leicester, etc., etc., etc. (ad infinitum).

They wouldn't resort to those tactics because it's Leicester, little old Leicester...(you see where I'm going with this).

Vardy wouldn't do that because he's fought his way through the lower leagues, Fleetwood Town, great success story, home-grown talent, etc., etc., etc.

Shame about the cheating and racism.

The whole Vardy thing is , as our American chums say, the elephant in the room. The he is a (proven) racist, a (proven) cheat and a weasel faced Steptoe look alike is apparently overlooked by the media. I think it is lazy journalism. "well respected" hacks like Oliver Holt and Henry Winter wrote headlines last week about the inconsistent performance of Moss (curiously neither said he was wrong with any decision just "inconsistent" ) , but no mention previously of the obvious handball by Leicester against Southampton , or of any of the 11 penalties Leicester have been awarded this year.

Its a story that has momentum. It writes itself.

I just hope Spurs nick it from them.

West Ham:

My opinion of the fairy-tale team is changing too. I looked on one of their forums to gauge their reaction to the game and was quite shocked. They are steadfast in their belief only they got shafted. Many think Vardy was right to call the ref a F***ing C**t and that he should tell England he wont play if selected for The Euros. A couple of posters tried to inject some objectivity but were roundly abused and 1 told them that if they weren't going to follow the party line, then don't post. They seem to really believe the FA have instructed refs to hamper them in winning the league as they want a bigger team to do so. I know a couple of people said it somewhat tongue in cheek on here but they are serious.
Also I saw 3 or 4 posts wishing Harry Kane a broken leg last night, reckon the pressures getting to the fans or they are just an unpleasant bunch.

Spurs are a better team, play better football. And about from a few knob head of fans who are mostly in their 40 and 50 and sit on the fightingrooster all day worrying and obsessing over us, Arsenal and any other club. Some of their fans are ok

Before our game my heart said Leicester but I was shocked at how the whole club reacted to a potential loss, I thought they all showed a lack of class and came across as snarling and whinging.

I had £50 on Spurs at 10/1 a while ago and then topped up at 11/4 so stand to win £600 and normally wouldn't mind forfeiting that to see Spurs lose but as I say after Saturday's display of vitriol,I actually think the Spuds are the lesser of two evils.

Leicester to miss out - having seen them at the weekend, they are a horrible team full of cheats. Spurs are the much better footballing side so I would prefer to see them win the title.

I'm hoping spurs win it from here on in, and i will be having a full detox after to cleanse myself of any impurities

 

[Lemonade Money]

 

[Baleforce]

so Vardy is going to go cap in hand to the FA begging for leniency, i'll be annoyed if (when, inevitably) they fall for it and let him off with just a fine so as not to ruin the #fairytale

 

[glasgowspur]

Thank ghod the forums back!! After watching Leicester v West Ham and then the glorious Spurs on Monday, without any sense from anyone on here I've been praying this week hasn't been a "Bobby Ewing" week and it was all a dream.

 

[alekaras]

Trawling the web this week and it's been delightful reading:













Aston Villa:








Chelscum:


Palace:





Everton:


Liverpool:


United:




Norwich:








West Ham:

Cherry picked, or general sentiment?

 

[Jordinho]

Cherry picked, or general sentiment?

There's still a few that hates us, but the sentiment is that a lot of fans from different clubs are turning on Leicester after actually watching them play or having faced them.