2018/19 financial results

Jeff

Administrator
Staff member
Leicester City Football Club today announces its financial results for the year-ending 31 May 2019, which set out the scale and depth of the Club’s commitment to continued investment in its long-term future.

Looking to build on its first decade under the ownership of King Power International – a period of significant initial investment, leading to sustained profitability and unprecedented on-pitch success – the Club enters into the next phase of King Power’s vision with a renewed commitment to reinvesting growing revenues back into the Club.

Following significant investments into the development of its new training facility in Charnwood, the planning and design related to the proposed expansion of King Power Stadium and continued investment in the playing squad and key staff, the Club recorded a pre-tax loss of £20.2M for the year ending 31 May, 2019.

An increase in turnover to £178.4M (£158.9 in 2018) represents a continuation of a trend since the Club’s promotion to the Premier League in 2014, with turnover increasing on average by nearly 20% every season, omitting the extraordinary figures of 2017 under the previous UEFA Champions League distribution model.

The increase in turnover was mainly driven by commercial revenues growing to £29.9M (£14.2M in 2018), as the Club continues to develop its brand and international reach.

Continued investments in player registrations and the recruitment of key staff are designed to equip the Club’s football operation to be a consistent, long-term competitor for domestic honours, aspiring to return to European football.

The transformational investment into the Club’s new training ground has been financed by the Club entering into a six-year facility with King Power after the year-end, further demonstrating the commitment of the Club’s shareholders to its long-term development. Further capital investments have also been supported through the planned utilisation of other financing facilities available to the Club.

Sitting securely among the King Power Group of Companies, the Club’s future course continues to be safely navigated by the Srivaddhanaprabha family, whose successful and responsible ownership of Leicester City began its 10th season in August 2019.

Leicester City Chief Executive Susan Whelan said: “Ten years on from King Power’s takeover in 2010, Leicester City finds itself in a position of strength from which we can all move securely forward with confidence and ambition. During that time, the Club’s supporters have put their faith in King Power’s long-term investment strategy and we aim to continue rewarding that faith with progress, growth and success both on and off the pitch.

“We remain a Club of fierce ambition: striving to progress every season; giving ourselves every opportunity to compete more consistently at the elite level of the game; giving amazing experiences to our fans in the stadium and around the world; and making our community proud of its football club. It’s the reason every penny of revenue generated during those 10 years under King Power’s ownership has been reinvested into the Club.

“I’m excited to assure our supporters that, even with the considerable progress that has been made in the last 10 years, we’re very confident that the best is yet to come.”
 

Brown Nose

Well-Known Member
There are some quite odd figures being reported here. It's our first loss since being promoted I believe.

On transfers, we spent £119m on 7 players (Benkovic, Soyuncu, Ward, Ghezzal, Maddison, Evans, Ricardo). Looking at how much they were reported as costing, we paid quite a lot more on some of these than expected.

The worst bit though is the money made on player sales - £58m. This includes the sale of Mahrez (so we obviously didn't get £60m for him) as well as Musa (we obviously didn't get the silly money reported for him either) and Benaloune (we obviously didn't get the money reported for him too). Iborra and Ulloa were also sold during this period!

So whereas we could have expected to break even on that year of transfers based on what was reported at the time, it looks like we are actually more than £60m down!

We've reported a big increase in sponsorship but I've no idea where this has come from - any ideas? Maybe we've learnt from the Man City school of doing sponsorship deals with ourselves.

It cost about £10m to sack Puel and bring in Rodgers.

Just £13m of the costs of the new training ground are included in these accounts so a huge amount will have to be incorporated into our 19/20 ones (we've spent an additional £41m since these accounts). We've also spent £2.6m on the stadium development planning.

Our player/staff wage bill increased by over £30m too.

The Maguire money is due in the next accounting period but we spent at least as much as we got for him on players in so there won't be any surplus to play with. We probably need the Champions League this season to pay the bills!
 

M17TT C

Well-Known Member
Could it be possible that the money from the sale of Mahrez at least, if not Musa too, is paid over a number of seasons?
 

Jeff

Administrator
Staff member
Transfer fees received and paid are usually spread out over several years. Does the reported amount include the full fee, or just the amount during the financial year?
 

SilverFox

Well-Known Member
We borrowed the money for the training ground. I’ve no doubt the repayment of the loan will be spread over a number of years. Nothing to be worried about.
 

Lako42

Well-Known Member
Transfer fees received and paid are usually spread out over several years. Does the reported amount include the full fee, or just the amount during the financial year?
The amount received in that year. They could report future expected value of certain deals but imagine they don't.

Better tax purposes to get those payments over a number of years.
 

pork pie fox

Well-Known Member
There are some quite odd figures being reported here. It's our first loss since being promoted I believe.

On transfers, we spent £119m on 7 players (Benkovic, Soyuncu, Ward, Ghezzal, Maddison, Evans, Ricardo). Looking at how much they were reported as costing, we paid quite a lot more on some of these than expected.

The worst bit though is the money made on player sales - £58m. This includes the sale of Mahrez (so we obviously didn't get £60m for him) as well as Musa (we obviously didn't get the silly money reported for him either) and Benaloune (we obviously didn't get the money reported for him too). Iborra and Ulloa were also sold during this period!

So whereas we could have expected to break even on that year of transfers based on what was reported at the time, it looks like we are actually more than £60m down!

We've reported a big increase in sponsorship but I've no idea where this has come from - any ideas? Maybe we've learnt from the Man City school of doing sponsorship deals with ourselves.

It cost about £10m to sack Puel and bring in Rodgers.

Just £13m of the costs of the new training ground are included in these accounts so a huge amount will have to be incorporated into our 19/20 ones (we've spent an additional £41m since these accounts). We've also spent £2.6m on the stadium development planning.

Our player/staff wage bill increased by over £30m too.

The Maguire money is due in the next accounting period but we spent at least as much as we got for him on players in so there won't be any surplus to play with. We probably need the Champions League this season to pay the bills!
Transfer fees received and paid are usually spread out over several years. Does the reported amount include the full fee, or just the amount during the financial year?
Exactly. Without knowing what is and isn’t included in the figures, on this front, it’s impossible to interpret them accurately.
 

popillius

Well-Known Member
Pretty standard accounting. Fees recieved for players will be spread over a few years worth of figures as will the cost of the training ground or any 'loan' payments made towards this. The club is in a perfectly viable and stable financial state at present and any talk of having to sell off every player of worth to make ends meet is nonsense.
 
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