Leicester City Post Record Losses of £92.5m

[jonathan_ross]

9 hours 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. 

Well she’s not exactly Karen Brady 

[Collymore]

Didn't Top just inject £200m into the club? All this money talk  confuses the hell out of me.  

[StanSP]

10 minutes ago, Collymore said:

Didn't Top just inject £200m into the club? All this money talk  confuses the hell out of me.  

Yeah but these accounts cover the 21/22 financial year. 

[Ric Flair]

8 hours ago, An Sionnach said:

We have to pay otherwise we will not recruit or retain players. You do not stay in the PL on the cheap. Our income is nothing like enough , from match receipts, commercial business or selling players. Tielemans and Maddison are still underpaid by PL standards for players of their class.

I still think I can be structured better than we have done it, we've fallen in to the trap of rewarding almost thr entire squad over and above what we should have done from the off. I still believe our best model is buying players young on decent wages, renew if successful but look to sell a few and keep reinvesting. 

[99 Problems]

18 minutes ago, Collymore said:

Didn't Top just inject £200m into the club? All this money talk  confuses the hell out of me.  

No he wrote off a chunk of debt the club was never going to be able to pay off in what was effectively a tidying up exercise (as explained in the athletic). There’s no injection of cash or a translation into additional funds

 

The losses make for very grim reading. If we relegated we’re going to be stuck paying the likes of Vardy £160k a week while losing the revenue streams from the PL that allow us to do that. It’s going to be a disaster

[Pliskin]

31 minutes ago, 99 Problems said:

No he wrote off a chunk of debt the club was never going to be able to pay off in what was effectively a tidying up exercise (as explained in the athletic). There’s no injection of cash or a translation into additional funds

 

The losses make for very grim reading. If we relegated we’re going to be stuck paying the likes of Vardy £160k a week while losing the revenue streams from the PL that allow us to do that. It’s going to be a disaster

He hasn’t written it off per se has he? Haven’t they just moved it to another business area? I mean I may be wrong but it seems that they have moved the debt from LCFC to another area, so technically it’s still there just not against the club? That’s how someone explained it to me, and we’re two idiots in a can…..

[CosbehFox]

Have to remember as well those results are with a good revenue income for us. There will be no European prize money, Community Shield related bonuses, TV money in relation to Europe or anything of that nature in the next financial year. 

[MrSpaM]

So we have been selling our best players to balance the books, which has resulted in in nearly £100,000,000 worth of losses?...

[Tommy G]

1 hour ago, jonathan_ross said:

Well she’s not exactly Karen Brady 

No, she sucks out over £2m a year out of West Ham. No sure shes worth x6 of Susan Whelan though

[Tommy G]

1 hour ago, 99 Problems said:

No he wrote off a chunk of debt the club was never going to be able to pay off in what was effectively a tidying up exercise (as explained in the athletic). There’s no injection of cash or a translation into additional funds

 

The losses make for very grim reading. If we relegated we’re going to be stuck paying the likes of Vardy £160k a week while losing the revenue streams from the PL that allow us to do that. It’s going to be a disaster

Not a chance we are paying Vardy £160K a week. More like £100K. 

[moore_94]

6 minutes ago, MrSpaM said:

So we have been selling our best players to balance the books, which has resulted in in nearly £100,000,000 worth of losses?...

This set of finances has the summer where we didn’t sell anyone, which is part of the issue of why the losses are so high

[StanSP]

6 minutes ago, MrSpaM said:

So we have been selling our best players to balance the books, which has resulted in in nearly £100,000,000 worth of losses?...

We only sold one of them (Fofana) and that wasn't in the financial year of these accounts. 

 

 

[An Sionnach]

2 minutes ago, Tommy G said:

Not a chance we are paying Vardy £160K a week. More like £100K. 

That 160 has been quoted in the media many times and it is half of what De Gea gets remember. It is almost certainly accurate.

[Tommy G]

1 minute ago, An Sionnach said:

That 160 has been quoted in the media many times and it is half of what De Gea gets remember. It is almost certainly accurate.

What has David De Gea got to do with it. in his pomp possibly, but the 2 year ext will not be £160K a week, I'd bet my mortgage on it.

[StanSP]

Just now, Tommy G said:

What has David De Gea got to do with it. in his pomp possibly, but the 2 year ext will not be £160K a week, I'd bet my mortgage on it.

 

I feel like I need more comparisons just for the fun of it. How random for De Gea to be brought up

 

[Tommy G]

Just now, StanSP said:

 

I feel like I need more comparisons just for the fun of it. How random for De Gea to be brought up

 

Nuts.

 

Can you express Vardy's earnings as a % on UK GDP next please.

[An Sionnach]

5 minutes ago, Tommy G said:

What has David De Gea got to do with it. in his pomp possibly, but the 2 year ext will not be £160K a week, I'd bet my mortgage on it.

I wouldn't because nobody really knows except club,  player. and his agent. However our overall pay bill has and continues to grow remorselessly. If we try to stop that the quality of our team will inevitably decline. We desperately need more income.

Edited 8 March 2023 by An Sionnach

[Tommy G]

4 minutes ago, An Sionnach said:

I wouldn't because nobody really knows except club,  player. and his agent. However our overall pay bill has and continues to grow remorselessly. If we try to stop that the quality of our team all inevitably decline. We desperately need more income.

Which, despite a massive outlay, the stadium expansion will generate this in advertsing, boxes and surrounding hospitality at the KP. We need to keep our premier league status from a sponsoship point of view otherwise we'll be going back to the days of our kits being made by Burrda

Edited 8 March 2023 by Tommy G

[Sambiasso]

12 minutes ago, Tommy G said:

What has David De Gea got to do with it. in his pomp possibly, but the 2 year ext will not be £160K a week, I'd bet my mortgage on it.

Vardy is the clubs top earner. 

Soumares basic wage is 90k a week  

[An Sionnach]

11 minutes ago, Tommy G said:

Which, despite a massive outlay, the stadium expansion will generate this in advertsing, boxes and surrounding hospitality at the KP. We need to keep our premier league status from a sponsoship point of view otherwise we'll be going back to the days of our kits being made by Burrda

Absolutely correct and they need to start now and no excuses.

[AKCJ]

20 minutes ago, Tommy G said:

What has David De Gea got to do with it. in his pomp possibly, but the 2 year ext will not be £160K a week, I'd bet my mortgage on it.

I wouldn't if I were you.

[Ric Flair]

Vardy took a pay cut on this latest deal. Thry'll all have relegation wage decreases too.

[davieG]

https://www.leicestermercury.co.uk/news/leicester-news/leicester-city-finished-last-season-8225097

 

Leicester City finished last season more than £300m in the red, new figures reveal
Fresh losses were caused by factors including no big player sales during year, high staff costs and rising general costs

ByTom PegdenBusiness Editor
20:00, 7 MAR 2023

Leicester City finished last season more than £300 million in the red, new figures released today show. The club – currently struggling in the Premier League two points above the relegation places – ran up pre-tax losses of £92.5 million in the 2021-22 season according to newly released accounts, adding to existing debts.

The latest losses, which compared to £33.1 million a year earlier, were caused by a combination of factors including: no big player sales during the year; high staff costs compared to similar clubs; high interest costs; rising general costs; and having to pay UEFA back more than £1 million to compensate it for Covid losses.

However, in December club chairman Aiyawatt Srivaddhanaprabha turned £194 million of debt which was owed to him into equity in the club. The move helped cement his financial commitment in City and take the overall debt down to around £100 million, split between its owner and its bank. Despite the high levels of money owed, City said it still complied with the FA’s Financial Fair Play rules, put in place to ensure clubs do not get into trouble by overspending.

 

The new figures come amid the latest hold-up in the club’s plans to invest millions expanding the King Power Stadium, due to council negotiations over how much and where City should pump money back into the community as part of the planning process. It has previously been reported that that could include putting money into affordable housing, public transport and protection for the nearby Raw Dykes Roman site.

City had hoped to have started work rebuilding the East Stand in time for the 2024-25 season, taking capacity from just over 32,000 to more than 40,000. That time scale can no longer be met. The Thai owners also want to add a 220-room hotel, a 20-storey residential block, a 6,000-capacity indoor entertainment area and a new flagship club shop.

The club said the chairman and parent company King Power International continued to provide a “deeply secure footing” to pursue those long-term ambitions.

City chief executive Susan Whelan said: “Under 12 years of King Power ownership, we have consistently sought to invest in the club’s future and to build from established positions of strength. King Power’s unwavering support of the club provides a secure position from which to capitalise on our opportunities.

“However, 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. 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 and the development of the associated masterplan.

“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, bolstering our capability to keep investing in the growth of the club and forming a cornerstone of the most successful era in Leicester City’s history.

“Everyone at the club remains committed to the ongoing and responsible establishment of Leicester City as a consistently competitive force in the game’s leading competitions and a powerful force for good in our communities.”

City’s revenues last season were £214.6 million, compared to £226.2 million the year before. The club said the drop was partly down to some of the finances for the 2019-20 season being carried over due to the delay caused by Covid.

Gate receipts last season were £21 million, compared to £500,000 in the Covid-hit previous season. But the club had a £6 million cut in Premier League revenue for 2021/22 compared with the previous year due to the team’s lower finishing position.

Player trading profits for the year were also down on the near £43 million brought in the previous season, at £9.2 million, as the club held on to key players such as James Maddison and Youri Tielemans.

[Dames]

24 minutes ago, Ric Flair said:

Vardy took a pay cut on this latest deal. Thry'll all have relegation wage decreases too.

Does that not kick in until the extension does though meaning his wages won't be reduced until this summer? 

[moore_94]

45 minutes ago, An Sionnach said:

I wouldn't because nobody really knows except club,  player. and his agent. However our overall pay bill has and continues to grow remorselessly. If we try to stop that the quality of our team will inevitably decline. We desperately need more income.

Wages dropped by 5% for these accounts, have dropped further in the period after these accounts to now, and will drop even further in the summer

Edited 8 March 2023 by moore_94