davieG Posted 2 March 2017 Posted 2 March 2017 Thu 2nd Mar 2017 | Money & Finance Leicester City today announced its financial results for the year ending 31 May, 2016 – a period of continued growth and unprecedented success for the Football Club. An historic, captivating 2015/16 season that ended with City being crowned Premier League champions – the first top-flight title in the Club’s 132-year history – changed the face of Leicester City in the eyes of the world, capturing the imagination of a global audience and opening long-term avenues for revenue previously reserved for the game’s established elite. The Club recorded a pre-tax profit in the year to 31 May, 2016 of £16.4m (2015: £26.4m), offsetting rises in costs through substantially increased revenue. The on-pitch success of 2015/16 and its positive impact on the Club’s long-term financial outlook are the latest rewards achieved under the ownership of King Power International and the Srivaddhanaprabha family, who acquired the Club in 2010. Leicester City remains financially secure under their guidance and support, which will underpin the Club’s efforts to build on recent successes, convert the subsequent opportunity to build its brand internationally and develop a legacy for the Leicester community befitting the significance of 2016’s achievements. The Club’s turnover increased by more than £24m on the previous year, owing largely to prize money awarded for finishing 13 places higher in the Premier League table, the selection of a greater number of matches for live domestic television broadcast and exponential growth in retail income. Average attendances climbed to 32,021 (2015: 31,693). Increased costs for the year are primarily a result of the continued net, long-term investments in the First Team playing squad, though a player trading profit of £10.8m was recorded. The Club also increased its charitable donations, including £2million towards the development of a new Leicester Children’s Hospital and invested a further £3.5m into its fixed asset infrastructure. Leicester City Chief Executive Susan Whelan said: “The 2015/16 season will be remembered for generations to come as the season Leicester City changed the game. But those closest to our success – our supporters – will know that, while unexpected, it was a reward for the years of sustainable planning that preceded it. Our business principles, infrastructure and foundations have been in place for some time and it is our absolute belief in our approach that has yielded such a remarkable outcome, albeit it some way ahead of schedule! “Our long-term commitment to financial sustainability includes regular reinvestment back into the Club, keeping it competitive as we bid to bring continued success to its growing supporter-base and the community that has supported it for over a century. We will continue to work diligently and purposefully to build a legacy they can all be proud of. “The incredible support of the Srivaddhanaprabha family and the King Power Group of Companies continues to safeguard the Club’s future and it remains an enormously rewarding experience for everyone associated with the Club to be part of the family’s long-term vision. Their passion for the Club and commitment to its progress sets the tone from which we all take inspiration.” Image: Action Images via Reuters / Carl Recine Livepic
Guest MattP Posted 2 March 2017 Posted 2 March 2017 We won the league whilst making a profit, that really is incredible, not needing to borrow or have transfer fees paid for by billionaire owners. I imagine we are the first team to actually win it fairly since Arsenal in 2003.
davieG Posted 2 March 2017 Author Posted 2 March 2017 4 minutes ago, MattP said: We won the league whilst making a profit, that really is incredible, not needing to borrow or have transfer fees paid for by billionaire owners. I imagine we are the first team to actually win it fairly since Arsenal in 2003. Not only that we gave £2mill to charity although at the time I thought this was the owners money not the clubs although at times it's hard to see where one starts and the other finishes.
davieG Posted 2 March 2017 Author Posted 2 March 2017 Why LCFC profits were down in title-winning season By TomPegden | Posted: March 02, 2017 image: http://www.leicestermercury.co.uk/images/localworld/ugc-images/276308/Article/images/30173202/15883954-large.jpg Susan Whelan: "2015/16 season will be remembered for generations to come" Comments (1) Profits ADVERTISEMENT image: https://ad.doubleclick.net/ddm/ad/N9551.140471VIBRANTMEDIAUK/B10424770.139271663;sz=300x250;ord=1488447078208;dc_lat=;dc_rdid=;tag_for_child_directed_treatment=? at Leicester City dropped by £10 million last season – despite the team's amazing Premier League victory. image: http://tag-dyn.omnitagjs.com/fo-dyn/native/preview/image?key=9165ec89366e4b2e3ffee9c8178b5367&ztop=0.47094676811657943&zleft=0.01443462198179181&zwidth=0.42467417278738034&zheight=0.42467417278738034&width=80&height=80&kind=INTERNAL Sofa a bit squashed? With millions of buyers ready and waiting, there’s no better place for you to sell than eBay. Promoted by eBay image: http://fo-static.omnitagjs.com/fo-static/native/images/info-ayl.png Even though gate receipts, global merchandising and TV money all pushed revenues through the roof, pre-tax profits fell to £16.4 million – compared with £26.3 million in the 2014/15 season. The club said the drop was down to the increased overheads that went with such a huge season. That included things such as bigger salaries, higher bonuses and even more generous charitable donations. Overall turnover last season jumped to £128.7 million, up from £104.4 million a year earlier. The club said its on-pitch successes last year had a big impact on its long-term financial outlook, under the ownership of Thai billionaires the Srivaddhanaprabha family and their duty-free brand, King Power International. The owners, who bought the club in 2010, took no money out of the business as part of a policy of "reinvesting for success". City chief executive Susan Whelan said: "The 2015/16 season will be remembered for generations to come as the season Leicester City changed the game. Danny Simpson: Hurt Leicester City players answered their critics Jamie Vardy: We were stung into action "But those closest to our success – our supporters – will know that, while unexpected, it was a reward for the years of sustainable planning that preceded it. "Our business principles, infrastructure and foundations have been in place for some time and it is our absolute belief in our approach that has yielded such a remarkable outcome, albeit it some way ahead of schedule." Latest accounts for the 12 months to May 31, 2016, valued the 52 player squad at £236 million. They said the overall wage bill for all 223 full-time and 555 casual match day staff was £80 million – up from £57 million a year before. That increase was largely due to the rise in player wages. During the year, the club also increased its charitable donations, including £2 million towards a new Leicester Children's Hospital, and invested a further £3.5 million in things such as improvements to stadium facilities. Last January, City broke into the top 20 richest clubs in the world for the first time – with turnover expected to rise even further this season thanks to revenue from the Champions League and the huge windfall from a new TV deal for all Premier League clubs. The £24 million year-on year increase in turnover in the 2015/16 season was largely due to extra prize money awarded for finishing 13 places higher in the Premier League table, more matches being selected for live TV broadcast and strong growth in retail income. Premier League money – for TV rights and winning the title – was more than £94 million, compared with almost 73 million a year earlier. Money from sponsorship and advertising was slightly down at £14.4 million, and gate receipts were more than £11.5 million. Average attendances last year climbed to 32,021. Commercial revenue – taking into account things such as shirt sales – was up from £4.2 million to £7.2 million. Read more at http://www.leicestermercury.co.uk/why-lcfc-profits-were-down-in-title-winning-season/story-30173202-detail/story.html#D3kXcBbGgyaMKOCX.99
norwichfox Posted 2 March 2017 Posted 2 March 2017 22 minutes ago, davieG said: Not only that we gave £2mill to charity although at the time I thought this was the owners money not the clubs although at times it's hard to see where one starts and the other finishes. Maybe a bit of creative accounting to reduce the tax burden It's quite something to come from the almost obscurity post Peter Taylor days to win the hardest League in the world and still record a profit, I love this club and our owners.
Blue ROI Posted 2 March 2017 Posted 2 March 2017 48 minutes ago, MattP said: We won the league whilst making a profit, that really is incredible, not needing to borrow or have transfer fees paid for by billionaire owners. I imagine we are the first team to actually win it fairly since Arsenal in 2003. Didn't Man Utd win the league in 2003?
VLC86 Posted 2 March 2017 Posted 2 March 2017 You win the league and spend the profit on Ahmed Musa, top trolling Leicester.
Arriba Los Zorros Posted 2 March 2017 Posted 2 March 2017 8 minutes ago, Costock_Fox said: You win the league and spend the profit on Ahmed Musa, top trolling Leicester. Damn, that's true. You'e just ruined this thread in one fell swoop
VLC86 Posted 2 March 2017 Posted 2 March 2017 8 minutes ago, Arriba Los Zorros said: Damn, that's true. You'e just ruined this thread in one fell swoop Thank me later.
Babylon Posted 2 March 2017 Posted 2 March 2017 The next accounts might make interesting reading with so much spent on players and extra wages.
Nickfosse Posted 2 March 2017 Posted 2 March 2017 30 minutes ago, Arriba Los Zorros said: Damn, that's true. You'e just ruined this thread in one fell swoop Allow me to cheer you up. You win the league then spend the profit on Wilfred N'Didi
fazzyfox Posted 2 March 2017 Posted 2 March 2017 I'd be interested to know how much the club shop took on the last day of the season, there were visitors from Thailand with half a dozen carrier bags each and even I became a FKW, whilst flags and scarves were flying off the shelves or straight out of the boxes in some cases. Beats the days when all they had on the last day would be a Programme from Norwich away and a photo of Andy Feeley.
st albans fox Posted 2 March 2017 Posted 2 March 2017 51 minutes ago, Babylon said: The next accounts might make interesting reading with so much spent on players and extra wages. Profit will be much higher for year ending may 2017. Really will need some creative accounting to reduce the corporation tax bill !!
Babylon Posted 2 March 2017 Posted 2 March 2017 13 minutes ago, st albans fox said: Profit will be much higher for year ending may 2017. Really will need some creative accounting to reduce the corporation tax bill !! I've not seen the full accounts yet, but that article seems to suggest those accounts INCLUDE our prize money from the league win. What extra will be in next years, you've got a big chunk from champions league, ah plus we've got the increased premier league deal as well haven't we... I knew there was something I was missing.
john ridley Posted 2 March 2017 Posted 2 March 2017 Not sure why the commercial and advertising revenue was down ,would of thought that'd gone through the roof.
Merging Cultures Posted 2 March 2017 Posted 2 March 2017 And we know the owners are (largely) putting the money back into the club. It's very exciting to see how we are becoming financially secure. Next step, stop being such heart attacks on the field!!
Guest seanfox778 Posted 2 March 2017 Posted 2 March 2017 2 hours ago, Blue ROI said: Didn't Man Utd win the league in 2003? Yes they did, Arsenal won it 03/04
Babylon Posted 2 March 2017 Posted 2 March 2017 1 minute ago, Merging Cultures said: And we know the owners are (largely) putting the money back into the club. It's very exciting to see how we are becoming financially secure.Next step, stop being such heart attacks on the field!! I'd kill for a boring West Brom like season for one year...
davieG Posted 2 March 2017 Author Posted 2 March 2017 2 minutes ago, john ridley said: Not sure why the commercial and advertising revenue was down ,would of thought that'd gone through the roof. Most of it would have been agreed at the end of the great escape season wouldn't it so we were hardly in a position to negotiate better terms.
john ridley Posted 2 March 2017 Posted 2 March 2017 Ok , thanks for that , hopefully better this year then
AyewJoking Posted 2 March 2017 Posted 2 March 2017 cheer up guys, at least we spent the profit wisely........ <insert ahmed musa pic>
Beliall Posted 2 March 2017 Posted 2 March 2017 This is connected, not sure its worth its own thread http://www.bbc.co.uk/sport/football/39134128?ns_mchannel=social&ns_campaign=bbc_match_of_the_day&ns_source=facebook&ns_linkname=sport Leicester City: Premier League champions fight Financial Fair Play breach charge Leicester City have confirmed they are legally challenging a Football League charge of breaching Financial Fair Play (FFP) rules in 2014. It came as the Premier League champions released their financial results for 2015-16 on Thursday and declared a pre-tax profit of £16.4m to 31 May.
PaulW Posted 2 March 2017 Posted 2 March 2017 2 hours ago, Nickfosse said: Allow me to cheer you up. You win the league then spend the profit on Wilfred N'Didi Bargain!
Fox92 Posted 2 March 2017 Posted 2 March 2017 Ah good I'll expect season ticket renewal prices to remain the same or be dropped then.
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