89.7 m losses
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DagenhamFox
Blue Roofer
That’s quite frightening.
I’ve also just been sent this…
I’ve also just been sent this…
sgt_wilko
Roofer
Leicester City facing fresh PSR concerns after posting huge £89.7m losses
Financial woes escalate for Leicester after latest figures revealed amid fears of a points deduction for next season
John Percy
2 April 2024 • 6:00pm
Related Topics
Leicester City FC, EFL Championship
1
Leicester facing fresh PSR concerns after posting huge £89.7m losses
Leicester CREDIT: PA/Mike Egerton
Leicester City have announced huge losses of £89.7 million for the 2022/23 season, and are already under pressure to avoid further sanctions next year.
Following relegation from the Premier League last season, Leicester are facing fresh doubts over their ability to comply with Profitability and Sustainability Rules [PSR] after a second successive financial year of significant losses.
Leicester reported record losses of £92.5 million last year, and the latest set of accounts have been released shortly after they were charged with a breach of PSR by the Premier League.
With top-flight clubs limited to losses of £105 million over a rolling three-year period, the accounts for 2022/23 suggest it is inevitable that Leicester will have to raise money through player sales before June 30 after being referred to an independent commission.
Leicester have also been placed under a transfer embargo by the EFL which has heightened concerns that they may be also in breach for the 23/24 season.
Currently third in the Championship, Leicester are facing a potential points deduction next season whatever division they will be operating in, after last month’s charge.
King Power, the club’s ownership, insist they are fully committed to Leicester and their financial position is “secure”.
Leicester facing fresh PSR concerns after posting huge £89.7m losses
Leicester are fighting for promotion back to the Premier League CREDIT: Getty Images/Marc Atkins
This year’s accounts are attributed to many factors including relegation, the “unplanned expenditure” of sacking £8 million-a-year manager Brendan Rodgers, plus an estimated £30 million deficit from finishing 18th in the table below targeted expectations.
Crucially, Leicester also say that last season they had the largest combined employment costs and player amortisation in the Premier League outside of the traditional ‘Big-Six’ clubs.
The accounts include the sales of Wesley Fofana (£70 million to Chelsea) and James Maddison (£40 million to Tottenham). England international Maddison’s sale was completed on June 28 last year to be included in this reporting period.
Leicester have said the accounts are not a definitive PSR figure but a calculation, and they remain in dialogue with the Premier League and EFL.
Permitted add-backs, which are costs recognised to be in the general interest of the club, are included such as expenditure towards women’s football, community development and the academy.
Following relegation, Leicester offloaded several high earners while the remaining players took wage cuts between 35 to 50 per cent.
Aiyawatt Srivaddhanaprabha, the club chairman, said: “I want fans to be assured that the club’s financial position is entirely secure and that my personal support for Leicester City, and that of King Power, remains as strong as it has ever been.”
Srivaddhanaprabha has also converted £194 million of loans and related interest owed to King Power into equity, relieving Leicester of big debts to its parent company.
Championship clubs are demanding sanctions for Leicester
However, these latest figures will trigger concerns over the club’s ability to comply with regulations over this financial year and the next one. The total losses over the past three years total £215.3 million.
The Football League’s financial reporting unit has already raised concerns over information submitted last year for this season. Though the EFL failed to impose a business plan on the club, they have since placed them under a player registration embargo.
Many Championship clubs are demanding sanctions as they insist Leicester’s promotion challenge has been established with an unfair sporting advantage.
Leicester were charged by the Premier League on March 21 with a breach of PSR and have insisted that they will base their defence on the mitigating circumstances.
With leading sports lawyer Nick De Marco KC on board, the club are expected to argue that it was a unique set of factors which resulted in the £89.7 million loss before and after taxation.
After finishing fifth [twice] and eighth in the previous three seasons, they insist that last season’s finish was “a disappointing and unanticipated decline in sporting achievement”.
Leicester’s 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.”
Leicester were the fourth club to be charged by the Premier League for breaching financial controls, following Manchester City, Everton and Nottingham Forest.
Under head coach Enzo Maresca, Leicester have seven games left in the Championship season and are competing with Leeds and Ipswich for the two automatic promotion places.
Financial woes escalate for Leicester after latest figures revealed amid fears of a points deduction for next season
John Percy
2 April 2024 • 6:00pm
Related Topics
Leicester City FC, EFL Championship
1
Leicester facing fresh PSR concerns after posting huge £89.7m losses
Leicester CREDIT: PA/Mike Egerton
Leicester City have announced huge losses of £89.7 million for the 2022/23 season, and are already under pressure to avoid further sanctions next year.
Following relegation from the Premier League last season, Leicester are facing fresh doubts over their ability to comply with Profitability and Sustainability Rules [PSR] after a second successive financial year of significant losses.
Leicester reported record losses of £92.5 million last year, and the latest set of accounts have been released shortly after they were charged with a breach of PSR by the Premier League.
With top-flight clubs limited to losses of £105 million over a rolling three-year period, the accounts for 2022/23 suggest it is inevitable that Leicester will have to raise money through player sales before June 30 after being referred to an independent commission.
Leicester have also been placed under a transfer embargo by the EFL which has heightened concerns that they may be also in breach for the 23/24 season.
Currently third in the Championship, Leicester are facing a potential points deduction next season whatever division they will be operating in, after last month’s charge.
King Power, the club’s ownership, insist they are fully committed to Leicester and their financial position is “secure”.
Leicester facing fresh PSR concerns after posting huge £89.7m losses
Leicester are fighting for promotion back to the Premier League CREDIT: Getty Images/Marc Atkins
This year’s accounts are attributed to many factors including relegation, the “unplanned expenditure” of sacking £8 million-a-year manager Brendan Rodgers, plus an estimated £30 million deficit from finishing 18th in the table below targeted expectations.
Crucially, Leicester also say that last season they had the largest combined employment costs and player amortisation in the Premier League outside of the traditional ‘Big-Six’ clubs.
The accounts include the sales of Wesley Fofana (£70 million to Chelsea) and James Maddison (£40 million to Tottenham). England international Maddison’s sale was completed on June 28 last year to be included in this reporting period.
Leicester have said the accounts are not a definitive PSR figure but a calculation, and they remain in dialogue with the Premier League and EFL.
Permitted add-backs, which are costs recognised to be in the general interest of the club, are included such as expenditure towards women’s football, community development and the academy.
Following relegation, Leicester offloaded several high earners while the remaining players took wage cuts between 35 to 50 per cent.
Aiyawatt Srivaddhanaprabha, the club chairman, said: “I want fans to be assured that the club’s financial position is entirely secure and that my personal support for Leicester City, and that of King Power, remains as strong as it has ever been.”
Srivaddhanaprabha has also converted £194 million of loans and related interest owed to King Power into equity, relieving Leicester of big debts to its parent company.
Championship clubs are demanding sanctions for Leicester
However, these latest figures will trigger concerns over the club’s ability to comply with regulations over this financial year and the next one. The total losses over the past three years total £215.3 million.
The Football League’s financial reporting unit has already raised concerns over information submitted last year for this season. Though the EFL failed to impose a business plan on the club, they have since placed them under a player registration embargo.
Many Championship clubs are demanding sanctions as they insist Leicester’s promotion challenge has been established with an unfair sporting advantage.
Leicester were charged by the Premier League on March 21 with a breach of PSR and have insisted that they will base their defence on the mitigating circumstances.
With leading sports lawyer Nick De Marco KC on board, the club are expected to argue that it was a unique set of factors which resulted in the £89.7 million loss before and after taxation.
After finishing fifth [twice] and eighth in the previous three seasons, they insist that last season’s finish was “a disappointing and unanticipated decline in sporting achievement”.
Leicester’s 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.”
Leicester were the fourth club to be charged by the Premier League for breaching financial controls, following Manchester City, Everton and Nottingham Forest.
Under head coach Enzo Maresca, Leicester have seven games left in the Championship season and are competing with Leeds and Ipswich for the two automatic promotion places.
buz_not_buzz
Occasional Poster
Barnes is this year.
Absolutely amazing that we were spending £4 million a week in wages
I suppose it includes the pay off to Rodgers and his crew
£215million lost in three years against an allowance of £105 million but the
£215 million will be reduced for certain factors not relating to FFP
Look what you get for that a team that is relegated
Club looks broken
I suppose it includes the pay off to Rodgers and his crew
£215million lost in three years against an allowance of £105 million but the
£215 million will be reduced for certain factors not relating to FFP
Look what you get for that a team that is relegated
Club looks broken
SemperEadem
Roofer
Failed just a bit. Gross mismanagement.
Wearthefoxhat
Roofer
Leaking more money than Thames Water 
Do I believe Top and his assurances. I’m not sure, 225 millions over 3 years and surely this year the loss will be a similar figure. The only asset with any value is kdh so he will be sold asap. I’m 56 now and will be buggered for the rest of my lifetime, as they said on the podcast Leeds haven’t recovered yet 20 years later
Hampshirefox
Roofer
This is savage. A huge catalogue of errors and an "excuse" based on past performance of 5th, 5th and 8th....the latter was pure luck.
Managers, players and staff come and go. Fans are screwed over for years to come.
Managers, players and staff come and go. Fans are screwed over for years to come.
Southwiggy
Roofer
So on Saturday when I buy my 2 pints and a sausage roll/Hotdog depending on how I feel at halftime this will make no difference to our financial difficulties but cost me near fucking 20 quid .
Wearthefoxhat
Roofer
It’s got all the signs of an exit scam 
blackthorn8
Roofer
Fucking hellfire
hackneyfox
Roofer
If it helps the wages were for 13 months rather than 12.
It’s what happens when you get two top 5 places, play in Europe, win an FA Cup and try to keep up with big boys.
Some players deserved high wages, unfortunately we brought in unproven players and put them on stupid starting salaries as well.
wints
Roofer
I guess they did, which is why Rodgers downed tools and then made matters worse.
buz_not_buzz
Occasional Poster
You've got to wonder what League position they were banking on achieving. I thought Everton were deluded in banking on top half in 2021/22 and Forest 12th last season but after 2021/22 us banking on anything above lower middle (which we couldn't achieve anyway) would have been ludicrous and of course the salaries & amortisation for anybody not sold were already baked in by that point anyway.
I must admit I assumed the total salary position would not be as high because of significantly reduced performance related bonuses etc. (actually I see that bonuses were £9.4m less than the previous year) and of course the highest earner left early in the fiscal year. It was though a 13 month period as opposed to 12 but, still, given the reduced bonuses etc. an increase of £22m is eyebrow raising. I wish they had been brave enough to put a figure on the "significant cost associated with the changes in the club's first team management structure" but I don't see it in the accounts but not read it all...yet.
I must admit I assumed the total salary position would not be as high because of significantly reduced performance related bonuses etc. (actually I see that bonuses were £9.4m less than the previous year) and of course the highest earner left early in the fiscal year. It was though a 13 month period as opposed to 12 but, still, given the reduced bonuses etc. an increase of £22m is eyebrow raising. I wish they had been brave enough to put a figure on the "significant cost associated with the changes in the club's first team management structure" but I don't see it in the accounts but not read it all...yet.
buz_not_buzz
Occasional Poster
Which is why it seems increasingly odd that kicking him out the door was the last roll of the dice rather than the first. They might have had eyes on the compo but in doing so completely scuppered us on the field.
i know capital investment does not affect FFP but the cash spent on Seagrave should
have gone into extending the stadium and surrounding areas where cash would come in
Seagrave was built to enhance our youth set up and produce talent to sell on
We are around bottom of that league management constantly failing and little to show for it
Maybe Alves and Braybrooke
Basically another great piece of mismanagement
have gone into extending the stadium and surrounding areas where cash would come in
Seagrave was built to enhance our youth set up and produce talent to sell on
We are around bottom of that league management constantly failing and little to show for it
Maybe Alves and Braybrooke
Basically another great piece of mismanagement
buz_not_buzz
Occasional Poster
From a revenue perspective (and consequently PSR) yes but easier getting permissions for and redeveloping a golf course by the A46 than a city centre ground and in doing so created an asset for the club that helps the balance sheet (and, aside from football reasons, in doing so future borrowing or getting a return on investment). In terms of developing talent though there are 2 things to note: firstly, it's only been in place for a short amount of time and I assume both Alves & Braybrooke pre-dated Seagrave by quite some years and, secondly, having a facility is one thing, getting the right staff is another.i know capital investment does not affect FFP but the cash spent on Seagrave should
have gone into extending the stadium and surrounding areas where cash would come in
Seagrave was built to enhance our youth set up and produce talent to sell on
We are around bottom of that league management constantly failing and little to show for it
Maybe Alves and Braybrooke
Basically another great piece of mismanagement
wints
Roofer
We all assumed that at the point of his sacking, there was a clause that might mean his pay off was significantly reduced. In which case, how bad might it have been if we sacked him earlier and still gone down? Or how good might it have been if we had sacked him earlier but stayed up?