pork pie fox
Well-Known Member
Yes I thought that too. Was just pointing out the date and I suppose also saying that we’ll know a bit more about how things are being run on that side of things, once they are published.
Leicester face questions about FFP
- Thread starter lazzer
- Start date
homer
Well-Known Member
Yup
Brown Nose
Well-Known Member
April fools
popillius
Well-Known Member
The clubs financial position and meeting arbitrary targets set by the EFL or PL are entirely different things.
Micky
Well-Known Member
This is a really positive statement. The losses accrued by the club are totally different to the wealth of the owners. At least we know that the owners aren't about to do a Reading on us.
Lako42
Well-Known Member
But both would have a negative effect in terms of what the fans want to see.
Starting on minus points it doesn't really matter how different those things are, both will **** us.
SilverFox
Well-Known Member
Things are on the up financially for KP.
They guarantee the Macquarie loans. I wonder from a financial perspective what the consequence would be if Macquarie sought repayment immediately from the guarantor instead of us, then KP forgave us the debt.
popillius
Well-Known Member
You are right to an extent however the club being completely skint and unable to afford to repay creditors is world's and world's apart from not being able to meet PSR. Yes, it means we might have to concede points and yoyo between divisions for a bit but it also means that we're unlikely to go bust like many, many clubs before have.
Leicester City Football Club today publishes its financial accounts for the year ending 30 June 2023.
The accounting period corresponded with a season which saw Leicester City’s relegation from the Premier League. The Club’s investment in its First Team playing squad – a strategy reflected in eight previous seasons of high performance in the top flight – was, for the first time, not matched by on-pitch results.
The consequences of this disappointment, combined with the costs arising from the Club’s long-term commitment to maintaining a strong squad of players, were the primary factors behind a pre-tax loss of £89.7M (2022: £92.5M loss).
While turnover for the year decreased to £177.3M (2022: £214.6M), commercial revenues increased, with gate receipts up £1.4M, sponsorship revenue up £1.3M and commercial turnover up by £1M. The fall in turnover was primarily due to a reduction in Premier League merit payments and broadcast revenues, and the Club’s absence from European competition for the first time in three seasons.
The Club realised a net profit on player trading of £74.8M in the accounting period (£9.2M in 2022), though this increase was offset by a significantly lower-than-budgeted league position and a costly change in First Team management structure.
The Club’s commitment to the growth of women’s football in Leicestershire continued, with further investment in players, staff and facilities to aid the development of LCFC Women. The team’s second season in the Women’s Super League saw them improve on both their points total and finishing position from the previous campaign, securing a third successive season of top-flight football.
Over recent years, the Club's financial results have reflected necessary levels of investment in the men’s playing squad that allowed LCFC to compete with the most established clubs in the Premier League. The underlying security to pursue those ambitions has been, and continues to be, provided by the Club’s parent company, King Power International (KPI), under the leadership of Chairman Khun Aiyawatt Srivaddhanaprabha. His and his family’s support for the Club remains as strong as it has ever been. Indeed, the 2022/23 accounting period records Khun Aiyawatt’s conversion of £194M of loans and related interest owed to KPI into equity, relieving the Club of significant outstanding debt to its parent company.
LCFC remains engaged in a confidential process with the Premier League and the English Football League, regarding the Club’s Profitability and Sustainability calculations. The Club is determined to ensure that any charges against it are properly and proportionately resolved, in accordance with the applicable rules, by the right bodies, and at the right time.
Leicester City Chief Executive Susan Whelan said: “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.
"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.
“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. 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.”
The accounting period corresponded with a season which saw Leicester City’s relegation from the Premier League. The Club’s investment in its First Team playing squad – a strategy reflected in eight previous seasons of high performance in the top flight – was, for the first time, not matched by on-pitch results.
The consequences of this disappointment, combined with the costs arising from the Club’s long-term commitment to maintaining a strong squad of players, were the primary factors behind a pre-tax loss of £89.7M (2022: £92.5M loss).
While turnover for the year decreased to £177.3M (2022: £214.6M), commercial revenues increased, with gate receipts up £1.4M, sponsorship revenue up £1.3M and commercial turnover up by £1M. The fall in turnover was primarily due to a reduction in Premier League merit payments and broadcast revenues, and the Club’s absence from European competition for the first time in three seasons.
The Club realised a net profit on player trading of £74.8M in the accounting period (£9.2M in 2022), though this increase was offset by a significantly lower-than-budgeted league position and a costly change in First Team management structure.
The Club’s commitment to the growth of women’s football in Leicestershire continued, with further investment in players, staff and facilities to aid the development of LCFC Women. The team’s second season in the Women’s Super League saw them improve on both their points total and finishing position from the previous campaign, securing a third successive season of top-flight football.
Over recent years, the Club's financial results have reflected necessary levels of investment in the men’s playing squad that allowed LCFC to compete with the most established clubs in the Premier League. The underlying security to pursue those ambitions has been, and continues to be, provided by the Club’s parent company, King Power International (KPI), under the leadership of Chairman Khun Aiyawatt Srivaddhanaprabha. His and his family’s support for the Club remains as strong as it has ever been. Indeed, the 2022/23 accounting period records Khun Aiyawatt’s conversion of £194M of loans and related interest owed to KPI into equity, relieving the Club of significant outstanding debt to its parent company.
LCFC remains engaged in a confidential process with the Premier League and the English Football League, regarding the Club’s Profitability and Sustainability calculations. The Club is determined to ensure that any charges against it are properly and proportionately resolved, in accordance with the applicable rules, by the right bodies, and at the right time.
Leicester City Chief Executive Susan Whelan said: “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.
"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.
“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. 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.”
SilverFox
Well-Known Member
We haven’t remotely tried to comply.
Willlow
Well-Known Member
By selling their best players, only so long that can work as a strategy.
The system is rigged for the top 6 to stay the top 6 and for some reason the rest of the teams agreed to it
pork pie fox
Well-Known Member
SilverFox
Well-Known Member
I think we have been:-
1. Massively overspending on players who simply are not worth a fraction of what we paid for them; and
2. Massively overspending on wages.
Double Whammy.
camberwell fox
Well-Known Member
If you take the statement at face value and (last season) we predicted a finish of between 5th - 8th and commences the season on that footing, what could have been done in season to reduce the loss bearing in mind that at the close of the season we had to pay off BR and his cronies at an estimated £££ of £40 million?
We sold our most valuable assets at the close season and realised revenue underlining the player trading profit of ~£70 million, along with a loss in revenue due to league position of £30 million.
My question is simple, during last season what could we actively have done to avoid a gargantuan loss if we had planned for a top-half league position?
I accept our wage bill is hideous but surely in order to compete with the ‘big six’ our structure of wages had to be closer to theirs?
We sold our most valuable assets at the close season and realised revenue underlining the player trading profit of ~£70 million, along with a loss in revenue due to league position of £30 million.
My question is simple, during last season what could we actively have done to avoid a gargantuan loss if we had planned for a top-half league position?
I accept our wage bill is hideous but surely in order to compete with the ‘big six’ our structure of wages had to be closer to theirs?
Championship
| P | Pld | Pts | |
| 1 | Leicester | 45 | 97 |
| 2 | Ipswich | 45 | 93 |
| 3 | Leeds Utd | 45 | 90 |
| 4 | Southampton | 45 | 84 |
| 5 | Norwich City | 45 | 73 |
| 6 | West Brom | 45 | 72 |
| 7 | Hull City | 45 | 70 |
| 8 | Middlesbro | 45 | 66 |
| 9 | Coventry City | 45 | 64 |
| 10 | Preston | 45 | 63 |
| 11 | Bristol City | 45 | 62 |
| 12 | Cardiff City | 45 | 62 |
| 13 | Swansea City | 45 | 57 |
| 14 | Watford | 45 | 56 |
| 15 | Sunderland | 45 | 56 |
| 16 | Millwall | 45 | 56 |
| 17 | QPR | 45 | 53 |
| 18 | Stoke City | 45 | 53 |
| 19 | Blackburn | 45 | 50 |
| 20 | Sheffield W | 45 | 50 |
| 21 | Plymouth | 45 | 48 |
| 22 | Birmingham | 45 | 47 |
| 23 | Huddersfield | 45 | 45 |
| 24 | Rotherham Utd | 45 | 24 |
