Financial Overview of Leicester City

[ProfitsonTarget]

Hey foxes, 

 

I recently updated Leicester City's financial dashboard, showing a wealth of financial information for the club from 2016 to 2019. Will continue to update each year, but thought I'd share the link with you all if you're interested in taking a look! 

 

Qualifying for that Champions League spot is going to be critical from a financial perspective. Enjoy!

 

Leicester City Financial Dashboard

Edited 10 July 2020 by ProfitsonTarget
Fixing link

[happy85]

Can’t access report 

[themightyfin]

Where?!

[BirminghamFox]

All I can see is Spurs empty cabinet 

[ProfitsonTarget]

17 minutes ago, happy85 said:

Can’t access report 

Thanks for letting me know. Will try fix it asap. 

[ProfitsonTarget]

Apologies all for the technical issue-should be fixed now 

[ProfitsonTarget]

11 minutes ago, themightyfin said:

Where?!

Sorry it's hopefully fixed now! 

[themightyfin]

3 minutes ago, ProfitsonTarget said:

Sorry it's hopefully fixed now! 

Well at least we have no debt .

[urban.spaceman]

Empty page. Are our finances that bad these days or is this a report from 2002?

[ProfitsonTarget]

10 minutes ago, urban.spaceman said:

Empty page. Are our finances that bad these days or is this a report from 2002?

Is it still empty?

[st albans fox]

1 hour ago, ProfitsonTarget said:

Hey foxes, 

 

I recently updated Leicester City's financial dashboard, showing a wealth of financial information for the club from 2016 to 2019. Will continue to update each year, but thought I'd share the link with you all if you're interested in taking a look! 

 

Qualifying for that Champions League spot is going to be critical from a financial perspective. Enjoy!

 

Leicester City Financial Dashboard

enjoy ?   you cant make that statement given where we are and then write 'enjoy'!!

[urban.spaceman]

Joking aside this is a very interesting read. 

 

The effect of winning the league and playing CL football is very clear, as is the increased revenue from transfer dealings and jump in expenditure around the time the training ground broke ground. What would be handy is a comparison with our expected chart had we just been a mid table side the whole time, or if we compared our progress with say Southampton. 

 

Looking at the match day revenue we're going have a £14m black hole in our finances; we'll still be luckier than some other teams whose stadiums bring in much more (this is why Spurs have had to take a loan from the government).

 

I think this may well lead to either a change in sponsorship or a renewed KP shirt deal and/or kit deal. There are rumours that the KP sponsor deal expires this year and it's quite a modest one compared to others - we're 16th (£4m/yr) in comparison to the rest of the league; 7th-20th are £10m and below while Spurs to Man City get £35-45m a year and Man Utd get £64m from Chevrolet. Given our current placing and future there's a huge argument that we could be commanding a deal £25m and over. 

 

Same with the Adidas deal - there was an article (can't find it) in 2016/17 that stated we brought in the biggest profit for Puma, because it was a small (£1m) deal but we brought them the most exposure and money because of our title win. Not sure on the current deal but if we keep progressing, it could lead to a better deal and perhaps bespoke kits.

 

Also interesting is our highest paid director salary has fallen in the last few years - £259k in 2019 (vs £325k in 2018) according to this. When you take into account that Susan Wheelan probably earns the highest, and she negotiated £80m up front for Maguire with Ed Woodward, who earns £3.5m a year, that just tells you how ****ing lucky we are to have her.

 

All in all, very interesting read.

[urban.spaceman]

11 minutes ago, ProfitsonTarget said:

Is it still empty?

Not any more!

[LinekersLugs]

Debt ? Nearly 1/4 of a billion of it !!! WTF 

[Detroit Blues]

30 minutes ago, urban.spaceman said:

Joking aside this is a very interesting read. 

 

The effect of winning the league and playing CL football is very clear, as is the increased revenue from transfer dealings and jump in expenditure around the time the training ground broke ground. What would be handy is a comparison with our expected chart had we just been a mid table side the whole time, or if we compared our progress with say Southampton. 

 

Looking at the match day revenue we're going have a £14m black hole in our finances; we'll still be luckier than some other teams whose stadiums bring in much more (this is why Spurs have had to take a loan from the government).

 

I think this may well lead to either a change in sponsorship or a renewed KP shirt deal and/or kit deal. There are rumours that the KP sponsor deal expires this year and it's quite a modest one compared to others - we're 16th (£4m/yr) in comparison to the rest of the league; 7th-20th are £10m and below while Spurs to Man City get £35-45m a year and Man Utd get £64m from Chevrolet. Given our current placing and future there's a huge argument that we could be commanding a deal £25m and over. 

 

Same with the Adidas deal - there was an article (can't find it) in 2016/17 that stated we brought in the biggest profit for Puma, because it was a small (£1m) deal but we brought them the most exposure and money because of our title win. Not sure on the current deal but if we keep progressing, it could lead to a better deal and perhaps bespoke kits.

 

Also interesting is our highest paid director salary has fallen in the last few years - £259k in 2019 (vs £325k in 2018) according to this. When you take into account that Susan Wheelan probably earns the highest, and she negotiated £80m up front for Maguire with Ed Woodward, who earns £3.5m a year, that just tells you how ****ing lucky we are to have her.

 

All in all, very interesting read.

Will King Power be in a financial position to invest? I can't imagine duty free stores in Thailand, and Thai tourism in general is doing particularly well.

 

 

[jonthefox]

21 minutes ago, LinekersLugs said:

Debt ? Nearly 1/4 of a billion of it !!! WTF 

Just what i was about to say. I thought we were debt free since promotion. 

[jonthefox]

49 minutes ago, urban.spaceman said:

Joking aside this is a very interesting read. 

 

The effect of winning the league and playing CL football is very clear, as is the increased revenue from transfer dealings and jump in expenditure around the time the training ground broke ground. What would be handy is a comparison with our expected chart had we just been a mid table side the whole time, or if we compared our progress with say Southampton. 

 

Looking at the match day revenue we're going have a £14m black hole in our finances; we'll still be luckier than some other teams whose stadiums bring in much more (this is why Spurs have had to take a loan from the government).

 

I think this may well lead to either a change in sponsorship or a renewed KP shirt deal and/or kit deal. There are rumours that the KP sponsor deal expires this year and it's quite a modest one compared to others - we're 16th (£4m/yr) in comparison to the rest of the league; 7th-20th are £10m and below while Spurs to Man City get £35-45m a year and Man Utd get £64m from Chevrolet. Given our current placing and future there's a huge argument that we could be commanding a deal £25m and over. 

 

Same with the Adidas deal - there was an article (can't find it) in 2016/17 that stated we brought in the biggest profit for Puma, because it was a small (£1m) deal but we brought them the most exposure and money because of our title win. Not sure on the current deal but if we keep progressing, it could lead to a better deal and perhaps bespoke kits.

 

Also interesting is our highest paid director salary has fallen in the last few years - £259k in 2019 (vs £325k in 2018) according to this. When you take into account that Susan Wheelan probably earns the highest, and she negotiated £80m up front for Maguire with Ed Woodward, who earns £3.5m a year, that just tells you how ****ing lucky we are to have her.

 

All in all, very interesting read.

I can't see it personally. I think in this regard both King Power and LCFC scratch each others back financially. 

[ProfitsonTarget]

50 minutes ago, urban.spaceman said:

Joking aside this is a very interesting read. 

 

The effect of winning the league and playing CL football is very clear, as is the increased revenue from transfer dealings and jump in expenditure around the time the training ground broke ground. What would be handy is a comparison with our expected chart had we just been a mid table side the whole time, or if we compared our progress with say Southampton. 

 

Looking at the match day revenue we're going have a £14m black hole in our finances; we'll still be luckier than some other teams whose stadiums bring in much more (this is why Spurs have had to take a loan from the government).

 

I think this may well lead to either a change in sponsorship or a renewed KP shirt deal and/or kit deal. There are rumours that the KP sponsor deal expires this year and it's quite a modest one compared to others - we're 16th (£4m/yr) in comparison to the rest of the league; 7th-20th are £10m and below while Spurs to Man City get £35-45m a year and Man Utd get £64m from Chevrolet. Given our current placing and future there's a huge argument that we could be commanding a deal £25m and over. 

 

Same with the Adidas deal - there was an article (can't find it) in 2016/17 that stated we brought in the biggest profit for Puma, because it was a small (£1m) deal but we brought them the most exposure and money because of our title win. Not sure on the current deal but if we keep progressing, it could lead to a better deal and perhaps bespoke kits.

 

Also interesting is our highest paid director salary has fallen in the last few years - £259k in 2019 (vs £325k in 2018) according to this. When you take into account that Susan Wheelan probably earns the highest, and she negotiated £80m up front for Maguire with Ed Woodward, who earns £3.5m a year, that just tells you how ****ing lucky we are to have her.

 

All in all, very interesting read.

Thank you so much for your comments and I'm glad you found it interesting. I agree with you regarding a comparison. As part of my overall site, I'm still working on a comparison tool which will allow users to compare every Premier League club for pretty much any financial measure. I will share that once it is up and running but that should be a few weeks/maybe a month or two away. 

 

I think Commercial Revenue is the ultimate road to take for Leicester should it wish to increase its Revenue and Profitability in the long run. It certainly could be getting more out of its sponsors and I have no doubt that a deal of £25m or more could be attained. Although Covid may potentially push it down to the lower end. 

 

As for the highest paid director, I imagine that Susan Wheelan's remuneration package is tied to the performance of the club and a few other measures, but when you compare her package to some of the others in the Premier League, you realise just how much some of these directors earn. 

 

Thanks again for your comments. I really believe the club will finish in the top 4, and that will springboard the club to new financial heights (after navigating through this pandemic). 

[coolhandfox]

11 minutes ago, jonthefox said:

Just what i was about to say. I thought we were debt free since promotion. 

 

33 minutes ago, LinekersLugs said:

Debt ? Nearly 1/4 of a billion of it !!! WTF 

"The transformational investment into the Club’s new training ground has been financed by the Club entering into a six-year facility with King Power after the year-end, further demonstrating the commitment of the Club’s shareholders to its long-term development"

 

This statement in the clubs accounts seem to indicates that we have facility to borrow money from King Power, to pay for the Training ground etc

[urban.spaceman]

53 minutes ago, ProfitsonTarget said:

Thank you so much for your comments and I'm glad you found it interesting. I agree with you regarding a comparison. As part of my overall site, I'm still working on a comparison tool which will allow users to compare every Premier League club for pretty much any financial measure. I will share that once it is up and running but that should be a few weeks/maybe a month or two away. 

 

I think Commercial Revenue is the ultimate road to take for Leicester should it wish to increase its Revenue and Profitability in the long run. It certainly could be getting more out of its sponsors and I have no doubt that a deal of £25m or more could be attained. Although Covid may potentially push it down to the lower end. 

 

As for the highest paid director, I imagine that Susan Wheelan's remuneration package is tied to the performance of the club and a few other measures, but when you compare her package to some of the others in the Premier League, you realise just how much some of these directors earn. 

 

Thanks again for your comments. I really believe the club will finish in the top 4, and that will springboard the club to new financial heights (after navigating through this pandemic). 

Keep up the hard work!

[urban.spaceman]

58 minutes ago, jonthefox said:

I can't see it personally. I think in this regard both King Power and LCFC scratch each others back financially. 

Completely agree, the idea was floated around on here a while back but I can't see it either.

 

1 hour ago, Detroit Blues said:

Will King Power be in a financial position to invest? I can't imagine duty free stores in Thailand, and Thai tourism in general is doing particularly well.

There was speculation on here about that when the pandemic started. Thailand doesn't seem to have reported that many cases so travel in the region might be OK; you'd hope that after SARS in the 2000s that KP would have made contingency plans to diversify their income in times like these. I think they could afford to put in at least £30m a years personally.

[AKCJ]

1 hour ago, jonthefox said:

I can't see it personally. I think in this regard both King Power and LCFC scratch each others back financially. 

Yes to an extent, but I think the owners would be completely daft to turn down a shirt sponsorship for 2/3 times a much as they currently get.

[Grebfromgrebland]

9 minutes ago, pmcla26 said:

How is it even possible we have £240m of debt? 
 

We’re supposedly one of the best run clubs in the league, I hate to think how much debt others must be in. 

If we want to compete with the big boys we need regular champions league.  Otherwise it's the road to ruin.

 

Some of the debt is against transfer fees owed I think so not as bad as it looks.

[Richard]

38 minutes ago, pmcla26 said:

How is it even possible we have £240m of debt? 
 

We’re supposedly one of the best run clubs in the league, I hate to think how much debt others must be in. 

We took loans out against the fee instalments for Mahrez and Maguire so thatll be a sizeable chunk. 
 

e.g we sold Utd’s £80m transfer debt to a bank for £79.5m cash or something 

[Paninistickers]

4 hours ago, coolhandfox said:

 

"The transformational investment into the Club’s new training ground has been financed by the Club entering into a six-year facility with King Power after the year-end, further demonstrating the commitment of the Club’s shareholders to its long-term development"

 

This statement in the clubs accounts seem to indicates that we have facility to borrow money from King Power, to pay for the Training ground etc

Isn't the world of finance fascinating? 

 

You're an organisation with 150m in cash. You lend that 150m to a sister company, who agree to pay back, say, 170m over the next few years. 

 

So the organisation has just converted 150m cash into a 170m asset with a click of a button.