The club, which is on its way back to the Premier League after a brief period in the Championship, has had a turbulent season both on and off the field. Despite a recent downturn in form, Leicester is still at the top of the Championship, but clouds are gathering on the horizon regarding the club’s financial situation.
Leicester was relegated from the Premier League last season but has managed to fight its way to the top of the Championship with only 10 games left of the season.
The club reported a loss of around 688 million Danish kroner (92.5 million pounds) for the fiscal year 2021/22 and is expected to publish their figures for 2022/23 at the end of March.
The sale of star midfielder James Maddison to Tottenham for approximately 298 million Danish kroner (40 million pounds) last June was one of the highlights in the club’s recent financial strategy.
This is reported by Daily Mail.
Because Leicester has spent at least one season in the EFL, they are limited to a loss of only 618 million Danish kroner (83 million pounds) over a three-year period, compared to the 782 million Danish kroner (105 million pounds) that Premier League clubs are allowed to lose.
EFL’s concerns about Leicester’s financial situation led to a request for a business plan from the club, which Leicester successfully argued against by pointing out that they were a Premier League club in the relevant accounting period.
To improve their financial situation for the fiscal year 2023/24, Leicester could consider selling players before June 30.
After the sale of Harvey Barnes to Newcastle last July, there are few other valuable assets besides midfielder Kiernan Dewsbury-Hall, whom the club could potentially sell for a significant amount.
Highly paid players like Jamie Vardy, Kelechi Iheanacho, and Wilfred Ndidi all have contracts expiring in the summer.
Leicester has acknowledged that there are issues with the rules for profitability and sustainability. In a statement from the club, it reads: “Leicester City confirms that it is in dialogue with the football authorities regarding its calculations of profitability and sustainability. Regardless of the CFRP’s decision, the club remains committed to seeking an appropriate overall solution in this matter.”
