Leicester announce financial losses of £89.7m amid huge uncertainty at club
Leicester have revealed significant financial setbacks, reporting losses of £89.7million for a 13-month period to June 2023.
The Foxes were alleged to have failed to submit their audited financial accounts to the Premier League having suffered relegation from the top flight last season.
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The club's dedication to bolstering its squad has been evident in eight prior seasons of top-tier performance, although it did not yield corresponding on-pitch outcomes.
The aftermath of this setback, along with the expenses linked to the Foxes sustained efforts in maintaining a formidable player squad, contributed primarily to a pre-tax deficit of £89.7m (compared to a £92.5m loss in 2022).
Although the turnover for the year declined to £177.3m (compared to £214.6m in 2022), there was a rise in commercial revenues.
Gate receipts, they say, have increased by £1.4m, sponsorship revenue by £1.3m, and commercial turnover by £1m.
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The drop in turnover was mainly attributed to decreased Premier League merit payments and broadcast revenues, along with the club's absence from European competitions for the first time in three seasons.
During the accounting period, Leicester achieved a net profit of £74.8m from player trading (compared to £9.2m in 2022) with James Maddison joining Tottenham. Harvey Barnes' switch to Newcastle came after the accounting period.
However, this rise was counterbalanced by a league position notably below budget and the expensive restructuring of the first team.
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Leicester City has been accused by the Premier League of violating the league's Profitability and Sustainability Rules (PSR).
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The club may encounter a points deduction in the future if found guilty of breaching the financial regulations. However, any potential penalty wouldn't take effect in the current season.
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Enzo Maresca's side are currently in the midst of a promotion battle and are third in the Championship with 85 points, two behind league leaders Ipswich.
Leicester chief executive Susan Whelan said: “After a sustained period of growth and success for the club during the last decade, the 2022/23 season was a significant setback, the consequences of which will be felt for some time.
"We must now focus on rebuilding and seeking to return to and re-establishing ourselves in the Premier League.
"Having achieved finishing positions in the Premier League of fifth, fifth and eighth in the three preceding seasons, our targets and associated budgets for 2022/23 were entirely reasonable.
"However, for a club such as ours, whose sustained sporting achievements have justified the levels of investment required to compete with the most established clubs and pursue our ambition, a season of such significant under-performance on the pitch presents financial challenges, particularly from the perspective of the game’s current Profitability and Sustainability rules.
“The long-term and ongoing financial security and commitment provided by Khun Aiyawatt, the Srivaddhanaprabha family and King Power International, enables the club to rebuild with certainty and confidence.
"We’re infinitely grateful for the faith and support of our fans, whose commitment and loyalty continue to inspire our mission to restore Leicester City to the level at which we all want it to compete.”
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