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Foxtrot: Leicester's financial feat

All the following comments about Leicester City are based on a series of tweets by the knowledgeable Swiss Ramble. As he is not blogging any more, I am bringing together some of the highlights.

There is no doubt that winning the league title and then getting to the quarter finals of the Champions League had a transforming effect on Leicester City. They are now 7th in terms of revenues in the Premier League and 14th in the world. Revenues have increased by £200m since their promotion in 2014. Of the twelve Premier League clubs to have reported their 2016/17 figures so far, they have recorded the largest profit to date before tax: £92m, up from £16m. This is the highest profit a club has ever made in the Premier League.

However, a note of caution is necessary. These figures are unlikely to be repeated this year. In 2016/17 they received £70m in broadcasting income from the Champions League. They received more than Real Madrid as the broadcast pool is larger in the UK. On the downside, their wage bill went up by 40 per cent. Other expenses were up £12m to £32m.

Moreover, there is still a big gap between them and the top six. Commercial income didn't increase that much and is way behind what a club like Manchester United can command with its established global profile and sophisticated marketing operation.

Understandably enough Leicester do not make much on player sales as their task is to hold on to the best players they have. The club is also very reliant on broadcasting income (82 per cent of total revenues).

Nevertheless, they have established a good platform for further progress. As a Leicester University graduate, I wish them well.

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