Claudio Fannieri

Simple Debt Summary courtesy of AI Total owed (liabilities): ~£286m Cash in bank: ~£4.5m So in basic terms: The club owes a lot more than it has available in cash What that actually means Around £76m is longer-term loans (banks/financing) The rest is: transfer fees owed to other clubs short-term obligations general running costs It’s not all “bank debt”, but it’s all money that still needs paying. Important context The owners have already: written off £124m of debt Without that, the situation would look much worse. Bottom line The club is heavily in debt overall We have very little cash We are being kept stable by the owners and ongoing funding One sentence summary Leicester City owes hundreds of millions, has very little cash, and relies on its owners to keep things running. Hope this helps

Forget PSR bollox and allowable losses etc etc, as a business over the last 4 accounting periods we have lost £275m or on average £5.72m per month or £1.3m per week or nearly £200k per day ……. At what stage do the KPFC supporters wake up and see the financial abyss we face, the fact that those loses have presided in us gong from 8th in the premier league and a European semi final to the verge of league one. We have learnt nothing, last season we literally burnt money whilst mainly investing in bang average players and woeful managers whilst barely landing a punch on the premier league. The people who have managed this decline which includes our first ever pointe deduction haven’t paid the price with their jobs no instead they have been promoted. I repeat that our financial position is untenable and unsustainable, our cash position has worsened by over £2.5m in a season where we are in the top flight, so what will it look like after this season when match day and TV revenue has reduced significantly. We are in dire straits and is anyone comes on here defending or in denial as to the seriousness of our plight are deluded, naive and have little or no appreciation of business or finance. if we go down we will be in administration within 12 months, if we stay up without promotion we will be the same within 2 years and that is me being very positive .

This is horrific and make no mistake given we are now staring down the barrel of league one, with a squad who’s value is diminishing by the hour, this is a whole lot worse than the first year we were relegated as at least then we had a number of high value saleable assets. No doubt there will be some on here trying to paint a positive picture and outlook but the reality is we are going to hell in a handcart. What a shock the announcements of the new appointments were done in advance of the accounts being released because how any of these can retain their roles let alone get a promotion is beyond comprehension.

If this is true then it shows absolutely nothing has been learnt from previous mistakes, scandalous and would love to hear anyone’s defending the hierarchy,

…..anyone got a fiver they can lend us

It’s absolutely astounding that supposedly elite business people allow this to happen just because it’s football, there is no way in any other walk of life would they sign off on such unsustainable losses and ‘rewarding’ employees for persistent poor performance.

Absolutely superb stuff, please make this one happen @Anonymous F.O.X.

Amazing effort Ric 👏🏼👏🏼👏🏼

Have a look at Watford’s latest accounts, 1sf year without parachute payments, it is a bleak picture. Especially if we do get relegated to league one.

Yes agreed if we were to be relegated and then promoted back to the championship we would still have to demonstrate we had not breached the £39m of allowable losses over 3 year rolling period including the season(s) in league one.

So interestingly if we are relegated we operate at 75% not 60% for our first season in league one. Player trading is included but only on contractual amounts to be received in that relevant transfer period (1st July to 30th June) Owner can inject equity first £500k at 100% with next £250k at 75% then next £250k at 60% and anything over £1m at 60%. U21 players are not included unless they have played 40 first team games or earns £3,400 or more

Right I have uploaded the EFL 2025-26 rules into AI and asked for a simple summary - For League One clubs, the turnover percentage is 60%. For a club newly relegated from the Championship, it is 75% for its first season in League One only. The key formula The SCMP requirement says a club’s: Agents’ fees + player related expenditure – non-established under-21 player expenditure must not be more than its: player trading income + allowable equity injection income + relevant turnover x relevant turnover percentage. So the EFL is effectively asking: “Are your first-team squad costs covered by recognised football income, transfer income, and a limited amount of owner funding?” What counts as squad cost The rules are broader than just basic wages. They include, among other things: basic player salary appearance fees win, loyalty and promotion bonuses signing-on fees image rights payments accommodation, relocation and holiday costs paid for the player cars and other benefits in kind taxes and National Insurance pension contributions insurance premiums agents’ fees paid by the club, including those paid on a player’s behalf lump-sum compromise or redundancy payments to players wages of loan players while they are with the club. So this is not just “wages” in the narrow sense. It is effectively the full employment cost of the first-team playing group. What does not count in full There is one important relief for younger players. All under-21 players must still be disclosed, but non-established under-21 players are deducted back out of the calculation. An under-21 becomes an established under-21 player if: he reaches 40 first-team appearances, or his basic weekly wage reaches the Established Player Basic Wage, which for 2025/26 is £3,400 per week. Also, any under-21 on loan into the club is included in cost. What income counts The rules allow a club to use three main income buckets. 1) Relevant turnover This is the ordinary business income the EFL lets clubs count. It includes things such as: EFL distributions and facility fees solidarity and parachute payments received in cash league and cup gate receipts hospitality sponsorship advertising and commercial income merchandise club lottery matchday catering some stadium income club-generated streaming and other broadcast income. For most League One clubs, 60% of that relevant turnover can be used in the squad cost limit. 2) Player trading income This is transfer and loan income that the club is contractually due to receive in the relevant transfer period. The rules say the money must actually be received to qualify as transfer income. 3) Allowable equity injection income This is owner/investor money, but only part of it counts. The rules do not let owners simply cover everything without restriction. For League One, allowable equity injection income is staged: first £500,000 counts at 100% next £250,000 counts at 75% next £250,000 counts at 60% amounts above £1,000,000 count at 60%. Important point: this funding must be genuine equity/cash injection/donation it must be evidenced properly loan funding does not count if money is later repaid when it was meant to be non-returnable, that can amount to misconduct.

I agree hence my initial comment in a previous post when I assumed we couldn’t just have a fire sale due to the risk of not receiving book value and it having a negative impact on our plans for next season. we will still have to account for it in our accounts but from what I have read and understood it will not be included in the squad cost cap calculation. I am going to have another look 👀 to try and box it off one way or the other.

I have researched a bit more and transfer profit and loss is excluded from the 60% squad cost cap so it does mean the event of relegation we could use it as an opportunity to move on big earners or players with very high book values such Skipp to free up budget in the squad cost cap. it would still show a loss in our accounting period and financial results but the league one model allows this as long as the squad cost control stays within the permitted 60% of revenue.

Impairment is the club choosing to take a hit by reducing the book value in year but reducing future amortisation, this is excluded in the 60% squad cap as is transfer profit and loss so it’s another lever we could use to give us more wriggle room next season, albeit it would still be an accounting hit.

Actually whilst amortisation is included in the spend calculation. Profit and loss on transfer fees against book values are excluded. So technically if we were relegated we could use this as an opportunity to get real high earners off the books. We would still take an accounting hit for any losses but it wouldn’t impact the 60% spend against revenue. It would actually create additional opportunity as we would lose the cost of the wages from that high earner which could be reinvested to bring in 2/3 players.

However looking at those fixtures, we could also grab an opportunity to gain points over some or most as all tricky fixtures

Good luck Ric, will defiantly be keeping my eye out on a few of these auctions.

I believe as a condition of the sale, when the new owners selfed reported, they were able to knock £150m off the purchase price in addition they will also recover the fine. So all in all by self reporting Blueco have benefitted significantly, whilst the club have not been punished very harshly at all. My biggest concern is that this will now be used as the barometer for the Man City case and they will conveniently end up with a much larger fine and some sort of transfer embargo but avoid a points deduction on the grounds it’s not a direct PSR breach.

We can’t really afford to let anyone leave for less than their remaining book value because if we do then it’s a direct hit against the 60% limit for spend vs turnocer which interestingly does not include profits from transfers.

Won’t happen but this is what I would do - Stolarcyrk Okoli Lascelles Nelson Aluko Skipp James Thomas Mukasa Fatawu Daka What I actually think he will pick Begovic (if fit) Ricardo okoli Lascelles Thomas Winks JJ Fatawu Reid Mavididi Daka

Brilliant pod as always. Your shit by Libertine and anonymous fox absolute superb work. Great to hear Jack back for a guest slot

Ayew is just so slow to the tune of the only one I know by the charlatans

The Steve Cooper legacy, how anyone can defend his time here only needs to look at Ayew to see he epitomises his time here.

One thing is for sure the commercial department had better have a cunning plan for next season because if we do get relegated you can wave goodbye to any remaining tourist fans/daytrippers. You are going to have to rely on the good old legacy fans, you know the ones you have been treating with distain these last few seasons with lame kits, obscure front of shirt sponsorships, the farce with season tickets/mobile ticketing and slowly eroding any visible reference to the club prior to King Power. 💩 is about to get real for the club, the revenue streams that have become relied upon and taken for granted will now run dry,. The club has to get creative and really focus on securing sponsors and partners that resonate with the legacy fanbase, kits that excite the fans and pricing that encourages fans to come to the ground and back the club. External lucrative deals with far east betting and crypto companies won’t want a bar of league one or bottom end championship. When Susan Whelan left the club I reached out to offer support to the club as a business transformation and commercial consultant, with a view to sharing a number of innovative initiatives and proposals to help the club move forward as a sustainable business and to reconnect with its fanbase. As yet my offer is yet to be acknowledged or replied to by the club which is really frustrating.