Leicester City make pre-tax profit of £16.4m after winning Premier League
Thu 2nd Mar 2017 | Money & Finance
Leicester City today announced its financial results for the year ending 31 May, 2016 – a period of continued growth and unprecedented success for the Football Club.
An historic, captivating 2015/16 season that ended with City being crowned Premier League champions – the first top-flight title in the Club’s 132-year history – changed the face of Leicester City in the eyes of the world, capturing the imagination of a global audience and opening long-term avenues for revenue previously reserved for the game’s established elite.
The Club recorded a pre-tax profit in the year to 31 May, 2016 of £16.4m (2015: £26.4m), offsetting rises in costs through substantially increased revenue.
The on-pitch success of 2015/16 and its positive impact on the Club’s long-term financial outlook are the latest rewards achieved under the ownership of King Power International and the Srivaddhanaprabha family, who acquired the Club in 2010. Leicester City remains financially secure under their guidance and support, which will underpin the Club’s efforts to build on recent successes, convert the subsequent opportunity to build its brand internationally and develop a legacy for the Leicester community befitting the significance of 2016’s achievements.
The Club’s turnover increased by more than £24m on the previous year, owing largely to prize money awarded for finishing 13 places higher in the Premier League table, the selection of a greater number of matches for live domestic television broadcast and exponential growth in retail income. Average attendances climbed to 32,021 (2015: 31,693).
Increased costs for the year are primarily a result of the continued net, long-term investments in the First Team playing squad, though a player trading profit of £10.8m was recorded. The Club also increased its charitable donations, including £2million towards the development of a new Leicester Children’s Hospital and invested a further £3.5m into its fixed asset infrastructure.
Leicester City Chief Executive Susan Whelan said: “The 2015/16 season will be remembered for generations to come as the season Leicester City changed the game. But those closest to our success – our supporters – will know that, while unexpected, it was a reward for the years of sustainable planning that preceded it. Our business principles, infrastructure and foundations have been in place for some time and it is our absolute belief in our approach that has yielded such a remarkable outcome, albeit it some way ahead of schedule!
“Our long-term commitment to financial sustainability includes regular reinvestment back into the Club, keeping it competitive as we bid to bring continued success to its growing supporter-base and the community that has supported it for over a century. We will continue to work diligently and purposefully to build a legacy they can all be proud of.
“The incredible support of the Srivaddhanaprabha family and the King Power Group of Companies continues to safeguard the Club’s future and it remains an enormously rewarding experience for everyone associated with the Club to be part of the family’s long-term vision. Their passion for the Club and commitment to its progress sets the tone from which we all take inspiration.”
Image: Action Images via Reuters / Carl Recine Livepic
Posted by: Kev Howland
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