Leicester City FC has revealed a loss of £89.7m for the 2022/23 season in its latest financial report, after being charged by the Premier League for allegedly breaching Profit and Sustainability Rules (PSR).
The Championship club has reported a loss of £89.7m for last season alone. This brings its total losses for the side’s last three Premier League seasons to over £215m, which significantly exceeds the £105m limit imposed by the league.
The Foxes were referred to an independent commission for breaking PSR rules last month. Supporters of the club are now extremely worried about its future, following its latest financial report that intensified their concerns.
Susan Whelan, Chief Executive of Leicester City, commented: “After a sustained period of growth and success for the club during the last decade, the 2022/23 season was a significant setback, the consequences of which will be felt for some time. We must now focus on rebuilding and seeking to return to and re-establishing ourselves in the Premier League.”
Last season, Leicester were relegated to the Championship after finishing its campaign in 18th position on 34 points, an anomaly compared to its three seasons prior when it finished fifth, fifth and eighth.
On the surface, the club published some successful profits, which appear in the form of £74.1m in player sales. The club raised £70m after selling Wesley Fofana to Chelsea in August 2022, while last summer James Maddison moved to Tottenham for £40m and Harvey Barnes joined Newcastle for £39m.
However, the sacking of Brendan Rodgers and his coaching staff in April 2023 and their relegation to the Championship had a detrimental effect on any profits made, which the club described as a “disappointing and unanticipated decline”.
Whelan added: “Having achieved finishing positions in the Premier League of fifth, fifth and eighth in the three preceding seasons, our targets and associated budgets for 2022/23 were entirely reasonable.
“However, for a club such as ours, whose sustained sporting achievements have justified the levels of investment required to compete with the most established clubs and pursue our ambition, a season of such significant under-performance on the pitch presents financial challenges, particularly from the perspective of the game’s current Profitability and Sustainability rules.”
Currently, Leicester sit in third place in English football’s second tier, two points from the top spot with a game in hand. Although, at one point the Foxes were way ahead and automatic promotion looked certain, a drop in recent form has opened the door to other clubs. However, if the club can overcome its competition, it may start its next Premier League campaign on minus points.
This is because, if the Foxes are proven to have violated profit and sustainability regulations, the club could face a penalty in the form of a points deduction.
The legal proceedings, including any appeals, are expected to extend beyond the current season, meaning any sanctions would only be implemented in the following campaign, rather than affecting their current performance in the Championship.
Just as the club has said itself, it isn’t operating as a Championship club, but rather on a Premier League level. This raises concerns as things could look even uglier if the club fails to gain promotion, taking another heavy reduction in prize money, commercial revenue and broadcast rights.
“The long-term and ongoing financial security and commitment provided by Khun Aiyawatt, the Srivaddhanaprabha family and King Power International, enables the club to rebuild with certainty and confidence,” Whelan added.
“We’re infinitely grateful for the faith and support of our fans, whose commitment and loyalty continue to inspire our mission to restore Leicester City to the level at which we all want it to compete.”
In the top flight, Everton and Nottingham Forest are also battling with financial problems, as PSR looks as though it could play a huge role in which of the clubs gets relegated, which shockingly may only be decided weeks after the final game of the season due to dates set by the league.
