Leicester City Post Record Losses of £92.5m

[moore_94]

Kieran Maguire on Twitter going through it

 

• Revenue down but partly due to technical reasons with extra PL matches being played in year 1 June 2020 to 31 May 2021 due to lockdown

• Matchday income at a record £21m, previous season was in front of empty stadiums

• Broadcast income down £33m due to fewer matches played. UEFA prize/tv money exceeded matchday

• Commercial income at record level, includes merch sales, hospitality etc.

• Biggest cost for club is wages, Leicester paying £85 for every £100 of income. Down on previous season but still £100m more than when won Premier League. Ave wage £84k a week

• Amortisation (transfer fees spread over contract length) still high by club standards at £72m

• As a result of fall in income and overheads not falling as fast day to day operating losses increased from £66m to £79m. Total losses in last five seasons £368m

• One way to reduce losses it to sell players, Leicester made a profit of £9m in 21/22, lowest since 2015

• Leicester have borrowed money from banks and so interest cost up sharply to £363k a week, taking overall pre tax losses to £92m

• Player purchases modest by recent year standards, player sales low

• Leicester borrowed £115m in the year and made repayments of £68m. Since the year end owners have written off £194m of loans into shares but still has £80m of bank debt

[sacreblueits442]

1 hour ago, MPH said:

Situation eased’ by 8 players being out of contract?

 

Hardly!  That’s a fair few players that will need replacing considering our magnetism to injuries..

...unreal comment coming from him!!! 

  What, are we not supposed to  replace them?

Strange how they are so quick to report bad news associated with us, and the continually poor performances and Rodgers short comings are overlooked as a matter of course.

 I suppose that is how the outside world sees us.

[coolhandfox]

Actually better then I suspected, was rumours of it being over 100m loses.

 

Plus it doesn't included the Fofana sale.

[weller54]

Money has fvcked up Football.

🤬

[Tommy G]

Susan Whelan is being paid £327k for her role and they are chucking £25k into her pension - I’d of thought she would be at the lifetime limit by now!

 

It will make some peoples piss boil but I don’t think that’s mega wedge for that kind of role. 

[Unabomber]

1 minute ago, Tommy G said:

Susan Whelan is being paid £327k for her role and they are chucking £25k into her pension - I’d of thought she would be at the lifetime limit by now!

 

It will make some peoples piss boil but I don’t think that’s mega wedge for that kind of role. 

Less than I would’ve thought 

[Gamble92]

27 minutes ago, Tommy G said:

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. 

You're right, but it'd just be nice to have more accountability and more importantly more of a spotlight from the outside on this. Not one conversation on our situation in the mainstream media has spoken about the poor transfer activity while Brendan has been here as a reason he's had to put up with this poor summer. It's all been about how he's had it taken away from him by the owners. 

 

There's a lot of blame for a lot of people, from Top all the way down. But the way Rodgers and his staff have escaped blame from pundits is staggering to me.

[Foxxed]

1 hour ago, Lionator said:

One of the issues I have with Rodgers is that the conveyor belt of talent which we could’ve sold has completely dried up thanks to his management style. We could’ve demanded big money for the likes of Soyuncu, Barnes, Ndidi etc, yet they’re all crap now. 

One of those players is our second top goal scorer this season man...

 

But yeah. Your point stands. It's one of things that will hurt us the most.

 

If we had sold Soyuncu and or Ndidi for top dollar we wouldn't be in this mess.

 

And this doesn't even mention Tielemans running down his contract and others.

 

And now money must come into the picture in regard paying him off. Sickening really.

[Tommy G]

LCFC women’s operation has cost the thick end of £4m - Jeez

[coolhandfox]

1 hour ago, MPH said:

Situation eased’ by 8 players being out of contract?

 

Hardly!  That’s a fair few players that will need replacing considering our magnetism to injuries..

You have to also remember this doesn't account for the the Money saved on Kaspers wages as it 21/22

 

If Evans goes in the summer, he's wages combined with Kasper is around 12m a year. 

 

We could sign 4 or players for those wages.

Edited 7 March 2023 by coolhandfox

[Mickyblueeyes]

15 minutes ago, Hitesh said:

Competition and Markets Authority 

I know what it stands for - was interested in what the investigation was - someone else has posted the JD Sport enquiring.

[SemperEadem]

4 minutes ago, Tommy G said:

Susan Whelan is being paid £327k for her role and they are chucking £25k into her pension - I’d of thought she would be at the lifetime limit by now!

 

It will make some peoples piss boil but I don’t think that’s mega wedge for that kind of role. 

Likely to have a a club wage and a King Power wage for her stuff outside of the club?

[Kilworthfox]

1 minute ago, Tommy G said:

LCFC women’s operation has cost the thick end of £4m - Jeez

For a PR exercise as well. Expensive.

[Lako42]

How the **** we've allowed our avg wage to be £84k a week is beyond me. 

 

Someone is taking the piss

[moore_94]

Just now, SemperEadem said:

Likely to have a a club wage and a King Power wage for her stuff outside of the club?

and Leuven where she is also a Director

[turlo]

5 minutes ago, moore_94 said:

Kieran Maguire on Twitter going through it

 

• Revenue down but partly due to technical reasons with extra PL matches being played in year 1 June 2020 to 31 May 2021 due to lockdown

• Matchday income at a record £21m, previous season was in front of empty stadiums

• Broadcast income down £33m due to fewer matches played. UEFA prize/tv money exceeded matchday

• Commercial income at record level, includes merch sales, hospitality etc.

• Biggest cost for club is wages, Leicester paying £85 for every £100 of income. Down on previous season but still £100m more than when won Premier League. Ave wage £84k a week

• Amortisation (transfer fees spread over contract length) still high by club standards at £72m

• As a result of fall in income and overheads not falling as fast day to day operating losses increased from £66m to £79m. Total losses in last five seasons £368m

• One way to reduce losses it to sell players, Leicester made a profit of £9m in 21/22, lowest since 2015

• Leicester have borrowed money from banks and so interest cost up sharply to £363k a week, taking overall pre tax losses to £92m

• Player purchases modest by recent year standards, player sales low

• Leicester borrowed £115m in the year and made repayments of £68m. Since the year end owners have written off £194m of loans into shares but still has £80m of bank debt

Assume that 80 mill of bank debt is owed to Macquarie bank for advances of EPL TV money and Fofana money (Fofana money will be paid off in a few months when Chelseas final stage payments are due)

Wages are still sky high and signficant'y higher than the likes of West Ham, Brighton etc etc, although that should come down IF we replace players out of contract this summer + dead wood like Vestergaard with players on lower wages

[Tommy G]

1 minute ago, SemperEadem said:

Likely to have a a club wage and a King Power wage for her stuff outside of the club?

Almost certainly she will be remunerated elsewhere but they can only disclose the remuneration received from the club in these accounts, her tax return would make interesting reading 

[Mickyblueeyes]

8 minutes ago, Tommy G said:

Susan Whelan is being paid £327k for her role and they are chucking £25k into her pension - I’d of thought she would be at the lifetime limit by now!

 

It will make some peoples piss boil but I don’t think that’s mega wedge for that kind of role. 

She got to be getting benefits elsewhere in the group. £327k sounds modest at best.

[Tommy G]

1 minute ago, moore_94 said:

and Leuven where she is also a Director

Possible but doubtful - there would be all kinds of tax traps getting her money out of Belgium and probably a requirement for her to be in the country for a proportion of her time, not worth it. More likely in one of the other KP businesses

[Tommy G]

Just now, Mickyblueeyes said:

She got to be getting benefits elsewhere in the group. £327k sounds modest at best.

100%. You can get £200k as a CEO in a sub £50m t/o business easily.  

[UniFox21]

4 minutes ago, SemperEadem said:

Likely to have a a club wage and a King Power wage for her stuff outside of the club?

 

3 minutes ago, moore_94 said:

and Leuven where she is also a Director

I assume we'll have a few like this, where wages are split over numerous different companies to reduce burden on any one account 

[StanSP]

28 minutes ago, Cincinnati Fox said:

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

No it isn't. 

 

 

6 minutes ago, Tommy G said:

LCFC women’s operation has cost the thick end of £4m - Jeez

And that will only go up, especially if we are staying in the top division. 

[Poznan34]

Accounts up until May 22 - so doesn't include Fofana sale 

[Maybes]

26 minutes ago, Lako42 said:

How the **** we've allowed our avg wage to be £84k a week is beyond me. 

 

Someone is taking the piss

Can’t quite work out how he has got to the £84k per week figure from below?

 

EDIT: presumably making a number of assumption as regards to the playing staff numbers and their proportion of the staff costs below.

 

 

Edited 7 March 2023 by Maybes

[MPH]

31 minutes ago, coolhandfox said:

You have to also remember this doesn't account for the the Money saved on Kaspers wages as it 21/22

 

If Evans goes in the summer, he's wages combined with Kasper is around 12m a year. 

 

We could sign 4 or players for those wages.

I do see your point. Sadly I also think it’s time for Jamie Vardy to retire.

 

I don’t see  us signing 6-7 out of contract players so whilst we might see a reduction in wages that’s likely to be eaten up in some transfer fee outlays.. it’s hard to get a decent player for less than 15m these days!

Edited 7 March 2023 by MPH