Shahid Khan, the new owner of Fulham FC, has given directors “written assurances

[fulhamrover]

City Diary: Fulham FC needs the Big Cat to keep bringing home the bacon

Shahid Khan, the new owner of Fulham FC, has given directors "written assurances" that he will continue to underwrite the football club's working capital even if it drops out of the Premier League next month.

Fans of Fulham FC are feeling decidedly low, as relegation fears mount ahead of the football season's final whistle.
But Diary can reveal that at least a downgrade to the Championship wouldn't make The Whites "technically insolvent".
Fulham FC's new owner, the billionaire car parts tycoon Shahid Khan, has given the club's directors "written assurances" that he will continue to underwrite Fulham's working capital even if it drops out of the Premier League in May.

There is far more than fans' pride at stake. According to newly filed accounts for Fulham FC's holding company, Fulham Football Leisure, "sources controlled by" the Football Association Premier League accounted for 67pc of the club's £73m turnover for the year to June 2013.
In other words, relegation would prevent Fulham, which is laden with £14.7m of debt, being able to finance its "ongoing contractual commitments", making it hard to afford players capable of kicking it back into the Premier League.

Quite a vicious circle. So let's hope Khan's pockets – that means his Bermuda investment company Big Cat Holdings, which he used to buy Fulham from ex-Harrods boss Mohamed Al Fayed last July – remain as deep as his love of football.

http://www.telegraph.co.uk/finance/comment/citydiary/10740481/City-Diary-Fulham-FC-needs-the-Big-Cat-to-keep-bringing-home-the-bacon.html

67% of our income  comes from the Premier LEague -scary

[Lighthouse]

I am always confused over the debt situation and who owes what to whom. However the facts are we needed to speculate to accumulate, we didn't, so Khan is left with a mouse for Big Cat to play with.

[Baszab]

As repeated often here - I am sure AM and SOL would have fully briefed Khan and his advisors months ago on the consequences of relegation and the potential loss of investment if the FFC board did not get it right - hence the investment in the transfer window and the efficient overseeing of the team management during the season - not

[MJG]

Just had a look through the accounts (12-13) and they are ok. There was a large increase in wages and also the wages to revenue was up 11% to nearly 90% of income. Thats too high and think this years will be worse when we find them out.

The accounts state that relegation would give a redcuced income but the club can deal with that without further investment. I put this down to all the contracts ending, the kids on lower wages and reduction clauses as well. We gambled on the Greek and that has not worked so we have to put that down as one of those things.

In a nutshell what these accounts tell me is we uped the wages lasat year and backed Jol that way.
We proberbly did that again last summer, but all of this based on the way we try to live within our means.