Leicester City Post Losses In Latest Financial Results
Leicester City Football Club published its financial accounts for the year ending 30 June 2023 which showed a pre-tax loss of £89.7m.
The accounting period corresponded with a season which saw Leicester City’s relegation from the Premier League.
The consequences of relegation, combined with the costs arising from the club’s long-term commitment to maintaining a strong squad of players, were the primary factors behind a pre-tax loss of £89.7m (2022: £92.5m loss).
While turnover for the year decreased to £177.3m (2022: £214.6m), commercial revenues increased, with gate receipts up £1.4m, sponsorship revenue up £1.3m and commercial turnover up by £1m.
The fall in turnover was primarily due to a reduction in Premier League merit payments and broadcast revenues, and the club’s absence from European competition for the first time in three seasons.
The club realised a net profit on player trading of £74.8m in the accounting period (£9.2m in 2022), though this increase was offset by a significantly lower-than-budgeted league position and a costly change in First Team management structure.
The club’s commitment to the growth of women’s football in Leicestershire continued, with further investment in players, staff and facilities to aid the development of LCFC Women.
The team’s second season in the Women’s Super League saw them improve on both their points total and finishing position from the previous campaign, securing a third successive season of top-flight football.
Over recent years, the club’s financial results have reflected necessary levels of investment in the men’s playing squad that allowed LCFC to compete with the most established clubs in the Premier League.
The 2022/23 accounting period records Khun Aiyawatt’s conversion of £194m of loans and related interest owed to King Power International into equity, relieving the club of significant outstanding debt to its parent company.
Leicester remains engaged in a confidential process with the Premier League and the English Football League, regarding the club’s Profitability and Sustainability calculations and is determined to ensure that any charges against it are properly and proportionately resolved, in accordance with the applicable rules, by the right bodies, and at the right time.
Speaking of the results, Leicester City 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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