As Leicester City dominates the Championship, they’re also battling a financial storm that could see them facing a player exodus this summer, regardless of whether they secure promotion back to the Premier League.
The Foxes are on the brink of breaching profitability and sustainability rules (PSR), with staggering losses threatening their financial stability. Relegated from the Premier League last season, Leicester’s financial woes have only deepened, with projected losses surpassing £83 million over a three-year period.
Despite Premier League clubs being allowed losses of up to £105 million, Leicester’s cap is lower due to their current Championship status. Last season’s record losses of £92.5 million have set off alarm bells, with expectations of another hefty deficit in the upcoming financial accounts.
Attempts by the Football League to impose a business plan on the club were thwarted after Leicester argued that the rule didn’t apply during their Premier League tenure last season. Leading sports lawyer Nick De Marco KC spearheaded the club’s defense, contesting the EFL’s authority to expedite sanctions.
With financial accounts due by March 1, Leicester faces a race against time to generate funds before June’s deadline. Last summer’s sale of James Maddison to Tottenham for £40 million barely scratched the surface, leaving the club in a familiar bind, even if promotion under Enzo Maresca is achieved.
The Foxes could potentially bolster their coffers with an extended FA Cup run, while the uncertainty surrounding contract renewals for key players like Jamie Vardy, Kelechi Iheanacho, Jannik Vestergaard, and Wilfred Ndidi adds to the financial juggling act.
In a statement, Leicester expressed relief at the CFRP’s decision while voicing concern over the EFL’s overreach. Despite their legal victory, the club remains locked in discussions with football authorities to navigate the profitability and sustainability minefield.
Leicester City’s nine-year Premier League stint ended in disappointment last year, but with King Power’s backing, they’re determined to regain top-flight status, even if it comes at a hefty cost.
