Leicester City, a key competitor of Leeds United in the promotion race, reported a substantial pre-tax loss of nearly £90 million in their most recent financial accounts. These figures pertain to the 2022-23 season, during which the Foxes suffered relegation to the Championship. The announcement comes shortly after the Premier League charged the club for an alleged breach of the league’s Profit and Sustainability regulations.
The regulations stipulate that top-flight clubs are allowed to incur losses of up to £105 million over a three-year period. Leicester’s loss of £89.7 million in the last season alone has pushed their cumulative losses over the past three years to over £215 million.
The club’s future is uncertain as it remains to be seen how Leicester will navigate these financial challenges. Although they can benefit from certain add-backs, such as investments in their academy and women’s team, breaching the regulations could potentially result in a points deduction in the upcoming season, irrespective of the league they compete in.
Despite offloading players like Wesley Fofana and James Maddison last season, Leicester had a significant wage bill of £206 million, ranking among the highest outside the traditional top six clubs. Relegation had far-reaching financial implications, impacting not only their Premier League earnings but also leading to a 17 per cent decrease in revenue to £177 million compared to the previous year.
Susan Whelan, Leicester’s chief executive, acknowledged the setback faced by the club in the 2022-23 season and emphasized the need to focus on rebuilding and striving for a return to the Premier League. The club aims to regain its status and competitiveness in the top flight after enjoying several successful seasons.
Leicester’s recent struggles have prompted repercussions from the English Football League (EFL), including imposing a transfer embargo. In response, the club has initiated legal proceedings against both the EFL and the Premier League as they navigate these challenging financial and competitive circumstances.