The authoritative Swiss Ramble reviews the latest accounts of Leicester City: https://swissramble.substack.com/p/leicester-city-finances-202122
Leicester’s pre-tax loss nearly tripled from £33m to £92m,
mainly due to profit from player sales dropping £35m from £44m to £9m, though
revenue also fell £12m (5%) from £226m to £214m. Operating expenses rose £4m
(1%), while net interest payable shot up £8m (67%) from £11m to £19m.
Leicester’s £92m pre-tax loss is the second worst financial
result to date, only surpassed by Manchester United £150m, though large losses
were also reported by Tottenham £61m, Wolves £46m and Arsenal £45m.
Leicester’s £9m profit from player sales was the club’s
lowest since 2015, far below the likes of Aston Villa (mainly Jack Grealish)
£97m, Manchester City £68m and Liverpool £28m.
Up until last season Leicester had made a huge amount of money from
player sales, adding up to nearly a quarter of a billion pounds in the five
years between 2017 and 2021. Their business model was to sell a major name each
season to one of the Big Six clubs (often to Chelsea): N’Golo Kanté, Danny
Drinkwater, Riyad Mahrez, Harry Maguire and Ben Chilwell.
Leicester have now reported four consecutive years of
losses, adding up to £213m, which is in stark contrast to the four years of
profits after promotion to the Premier League in 2014, amounting to £137m.
Since King Power acquired Leicester City in August 2010, the
owners have put in £387m (£281m loans and £106m share capital), including £197m
in the last three years alone.
Looking ahead to this summer, it would be no surprise if
they sell James Maddison, as they look to comply with financial regulations.
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