April 23, 2024

‘I was taken aback’ – Football finance expert’s worrying Leicester City financial results verdict

Leicester have posted losses of £89.7 million for the season with losses over the past two seasons combined standing at £182 million. Accounts however do not fully break down the Profitability and Sustainability add-backs such as investment into youth development, women’s football and community schemes.

City did make a £74.8 million profit on player sales, including the exits of Wesley Fofana and James Maddison to Chelsea and Tottenham respectively.

The club’s wage expenditure stood at £206 million, more than their £177 million revenue. That expenditure was the eighth highest in the Premier League last season.

READ MORE: Leicester City post £90m loss in 2022/23 accounts and make huge FFP admission

READ MORE: Leicester City financial accounts LIVE – £90m loss recorded, PSR worry, FFP admission, what it means

Describing their relegation as a “disappointing and unanticipated decline”, City said their budgeting was “based on reasonable expectations given the previous sporting performance”.

After the club announced the loss, football finance expert Kieran Maguire admitted he was ‘taken aback’ from the significant loss. “Like many people, I was taken aback,” he told the ‘When You’re Smiling’ podcast.

“I knew it wasn’t going to be a great year but the fact that the club had to extend its financial year to 13 months to squeeze in sales and reduce the losses to just £90m was indicative of what a challenge it was. We knew the revenue would be down but I was amazed that the wage bill went up so high.

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