Leicester announce financial losses of £89.7m amid huge uncertainty at club

Leicester have revealed significant financial setbacks, reporting losses of £89.7m over the 13 months to June 2023.

The Foxes have reportedly failed to submit their audited financial accounts to the Premier League after being relegated from the top flight last season.

The club’s commitment to strengthening its squad has been evident in the previous eight seasons of top-level performances, even if it has not yielded matching results on the pitch.

The fallout from this setback, together with the expense of the Foxes’ continued efforts to maintain a formidable playing squad, contributed mainly to a pre-tax deficit of £89.7 million (compared to a loss of £92.5 million). pounds sterling in 2022).

Although turnover for the year fell to £177.3m (down from £214.6m in 2022), trading revenue increased.

Gate revenue, they say, increased by £1.4 million, sponsorship income by £1.3 million and commercial turnover by £1 million.

The drop in turnover is mainly attributed to the decline in merit payments and broadcast revenues from the Premier League, as well as the club’s absence from European competitions for the first time in three seasons.

During the accounting period, Leicester made a net profit of £74.8m from player trade (up from £9.2m in 2022), with James Maddison joining Tottenham. Harvey Barnes’ move to Newcastle came after the accounting period.

However, this increase was offset by a league position significantly below budget and a costly restructuring of the first team.

Leicester City have been accused by the Premier League of breaching the league’s Profitability and Sustainability (PSR) rules.

The club may have points withdrawn in the future if found guilty of breaching the financial regulations. However, any potential penalties would not take effect during the current season.

Enzo Maresca’s side are currently in the middle of a promotion battle and are third in the Championship with 85 points, two behind Championship leaders Leeds.

Susan Whelan, Leicester chief executive, said: “Following a sustained period of growth and success for the club over the past decade, the 2022/23 season was a significant setback, the consequences of which will be felt for a time.

“We now need to focus on rebuilding and looking to get back and re-establish ourselves in the Premier League.

“Having reached fifth, fifth and eighth places in the Premier League in the previous three seasons, our targets and associated budgets for 2022/23 were entirely reasonable.

“However, for a club like ours, whose sustained sporting performances have justified the levels of investment required to compete with more established clubs and pursue our ambition, a season of such significant underperformance on the pitch presents challenges financial, in particular due to the perspective of the current rules of profitability and sustainability of the game.

“The continued, long-term financial security and commitment provided by Khun Aiyawatt, the Srivaddhanaprabha family and King Power International allows the club to rebuild with certainty and confidence.

“We are infinitely grateful for the faith and support of our fans, whose commitment and loyalty continue to inspire our mission to return Leicester City to the level we all want them to compete at.”