Leicester City Post Record Losses of £92.5m

[Mickyblueeyes]

7 minutes ago, MPH said:

Forest have signed 33 players on permanents and loans since the end of last season. If they go down they will absolutely implode. Their fans are playing a risky game finger-jabbing at us…

We are not rivals apparently - there are more Forest fans on the Percy tweet than Leicester!!

[UniFox21]

18 minutes ago, MattFox said:

 

Looks like Top has leant the club £30 million of his own cash outside the KP group loans.

 

Would add to talk that not every one in KP is backing the club

No, they're billionaires, this is likely just moving money from different entities to avoid certain repercussions. 

[moore_94]

4 minutes ago, Mickyblueeyes said:

What's the CMA investigation - anyone know ?

To do with this with JD Sports I think

 

https://www.business-live.co.uk/retail-consumer/investigation-launched-leicester-city-jd-21730393

[FoxesTez]

11 minutes ago, Tommy G said:

Haven’t had chance to read the going concern piece in the directors report - anything juicy?

Talks about downside modelling on ‘league position’ but doesn’t explicitly say that they’ve modelled a relegation scenario.
 

I know what I’d have been modelling as a severe but plausible if I was signing the accounts off… 

[Gamble92]

Be nice if someone directly asks Brendan what he makes of the fact the failure of last summer's transfers are the direct reason for these losses and the fact he was unable to have his rebuild.

 

 

[Tommy G]

5 minutes ago, UniFox21 said:

No, they're billionaires, this is likely just moving money from different entities to avoid certain repercussions. 

Looks like the loan was in place the year before as there is a 21 comparative with some accrued interest. I’m on my phone though and it’s not that clear!

[Finn Claw II]

The out of contract players help sort the wage bill,  I can’t remember if transfer spend is effectively spread out over the contracts.

 

We pay too well for our current position, I suspect this is changing,  you have to hope we are not offering 60k plus contracts to average (or worse than) players.

 

 

 

 

[funkyrobot]

‘In the shorter term, as we look to continue to compete with more established opponents’
 

Basically saying we are back to going toe to toe on the transfer market with bottom end premier league and championship teams. 

[Tommy G]

2 minutes ago, Gamble92 said:

Be nice if someone directly asks Brendan what he makes of the fact the failure of last summer's transfers are the direct reason for these losses and the fact he was unable to have his rebuild.

 

 

No point, he will play that question off with a clean bat and say he is there to do a job and manage the side, the clubs finances are not his responsibility (and he’s right) the board won’t want the manager saying anything else about the finances, certainly. 

[Tommy G]

5 minutes ago, FoxesTez said:

Talks about downside modelling on ‘league position’ but doesn’t explicitly say that they’ve modelled a relegation scenario.
 

I know what I’d have been modelling as a severe but plausible if I was signing the accounts off… 

They would have to model it to maintain their going concern. The going concern piece is the most important from an RI’s point of view when putting his name on the accounts - all because of Corrilium, Thomas Cook, Patisserie Valerie etc etc

[desertfox2]

5 minutes ago, funkyrobot said:

‘In the shorter term, as we look to continue to compete with more established opponents’
 

Basically saying we are back to going toe to toe on the transfer market with bottom end premier league and championship teams. 

I'd say Vestergaard, Soumare and Daka for 60m was already going toe to toe with relegation zone teams. 

Edited 7 March 2023 by desertfox2
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[FoxesTez]

3 minutes ago, Tommy G said:

They would have to model it to maintain their going concern. The going concern piece is the most important from an RI’s point of view when putting his name on the accounts - all because of Corrilium, Thomas Cook, Patisserie Valerie etc etc

I know, I am an RI 

[Vestan Pance]

It would be unfair to pin these losses on one individual, I'm happy for Rudkin, Whelan and Rodgers to take equal responsibility of around £30m each.........yet none of their jobs appear to be at risk.

[Tommy G]

2 minutes ago, FoxesTez said:

I know, I am an RI 

You’re telling all your clients how much audit fees are going up at the moment due to new audit regulation then 😎

[davieG]

https://www.dailymail.co.uk/sport/football/article-11832031/Leicester-announce-losses-nearly-100m-plan-embark-summer-rebuild.html

Leicester announce losses of nearly £100m but still plan to embark on a rebuilding job this summer... with the struggling Foxes likely to allow star player James Maddison to leave the club
Leicester's announced losses of £92.5m over a 12-month period ending last May
That figure though does not include the £75m sale of Wesley Fofana to Chelsea
Star player James Maddison could be allowed to leave in a summer rebuild 
By TOM COLLOMOSSE FOR THE DAILY MAIL

PUBLISHED: 20:00, 7 March 2023 | UPDATED: 20:01, 7 March 2023

Leicester will embark on a summer squad rebuilding job against a backdrop of significant financial constraints after they announced losses of nearly £100million.

The latest set of results, which cover the 12-month period ending May 2022, reveal a pre-tax loss of £92.5m, though they do not include the £75m sale of Wesley Fofana to Chelsea, which was agreed last August.

Yet they still lay bare the difficulty of the situation at Leicester, who are fighting for Premier League survival this season and are preparing for a squad overhaul at the end of the campaign. 

The priority is to balance the books and chief executive Susan Whelan indicated strongly that Leicester will follow the model that has served them well in the past – namely selling a key player every summer. 

That would likely mean star man James Maddison departing while Harvey Barnes could also attract interest.

James Maddison could be allowed to leave Leicester as they look to embark on a rebuild

‘In order to remain compliant with the game’s regulations both domestically and in Europe – where we aim to compete regularly – our ongoing investment strategy must continue to reflect our underlying revenue progression,’ said Whelan. 

‘Our long-term ambition is to achieve this through on-pitch success, the commercial growth that comes with it and through the expansion of our stadium.

‘In the shorter term, as we look to continue to compete with more established opponents, profits from player trading and continued successful recruitment will continue to feature prominently in our strategy. This approach has served us well in the past.

‘King Power’s unwavering support of the Club provides a secure position from which to capitalise on our opportunities.’

Harvey Barnes could also attract interest during the upcoming summer transfer window

Leicester are just two points above the bottom three ahead of Saturday's clash with Chelsea

Leicester missed out on Champions League football on the last day of the season in both 2020 and 2021. Had they qualified, it would have delivered revenue at a time when all clubs were struggling to manage the effects of the Covid-19 pandemic.

They then broke from tradition by retaining their main players in summer 2021, but bought badly that summer. Not even the most optimistic Leicester fan would argue that the £60m for Patson Daka, Boubakary Soumare, Jannik Vestergaard and Ryan Bertrand was money well spent.

Leicester are only two points above the bottom three and face Chelsea on Saturday before travelling to Brentford in the final round of matches before the international break.

[Cincinnati Fox]

Job one!!! Get wages to less than 80% of turnover. Currently at 110% which is insane 

[Dahnsouff]

Just now, Cincinnati Fox said:

Job one!!! Get wages to less than 80% of turnover. Currently at 110% which is insane 

Where did you read that???

[blueharmie]

23 minutes ago, Mickyblueeyes said:

What's the CMA investigation - anyone know ?

Can't muster a win I think 

[coolhandfox]

53 minutes ago, urban.spaceman said:

Infrastructure isn’t included in FFP.

Not for FFP, but will be included in the actual accounts.

[Hitesh]

28 minutes ago, Mickyblueeyes said:

What's the CMA investigation - anyone know ?

Competition and Markets Authority 

[funkyrobot]

8 minutes ago, desertfox2 said:

I'd say Vestergaard, Soumare and Daka for 60m was already going toe to toe with relegation zone teams. 

That’s a lot of money for those three. I’d say it’s more Leicester getting fleeced by other clubs who knew we were going to splash the cash. Now everyone knows we aren’t pushing to be disrupting the big 6 and spend big we would’ve got all of those three for less than 30 million (and we would’ve still would’ve been ripped off.) 

[Tommy G]

Looks like they have a RCF with King Power of £50m if it really does go tits up. 

[coolhandfox]

8 minutes ago, Cincinnati Fox said:

Job one!!! Get wages to less than 80% of turnover. Currently at 110% which is insane 

Think you need to check your maths.

[moore_94]

3 minutes ago, Cincinnati Fox said:

Job one!!! Get wages to less than 80% of turnover. Currently at 110% which is insane 

Based on these accounts it is at 85%

 

£215m turnover

£182m wages

[Tommy G]

Bet Andrew Lyon was sweating his nads off putting pen to paper on that audit report