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Is £200m too much to ask for Leicester City?

It is now five months since Leicester City was put on the market with a £200m price tag.  Sam Rush, the CEO of consultancy General Sports told The Football League Paper, '£200m in League One is unheard of.  But of course Leicester are not your typical League One club.

'Few clubs have secured that valuation in the Championship though there are clubs at that level who will and have valued themselves at more. For example, Ipswich Town concluded a deal last year in excess of the Leicester asking price.'

'What I would say in this specific case is that Leicester are in a superb club.  They're in a really challenging place at the moment.   But what any buyer needs to assess is, is the current place temporary? Because whilst £200m is not sustainable for a club that stays in League One, it is extremely cheap for a club in the Premier League.'

'Of course, buying a club is the simple bit.  Running it is a different kettle of fish, especially in the Championship where annual losses typically run into the tens of millions.   What you really need to look at as investor is the running costs.'

'The cash burn over three to five years is probably going to take you beyond the £100m mark, and that's just to stay competitive.   What we say to any prospective buyer is that whatever the purchase price is, you're probably going to need that amount of money again to run the club.'

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