Leicester are a relatively high profile club in the division and generally are backed in the pre-season to a level which is probably flattering. I imagine the amounts of money are fairly small and don't mean a great deal.
What is very slightly more significant than the 16-1 for City to win the championship and 4-1 to gain promotion is that MA is only 4-6 to keep his job for the season.
As has been pointed out it's total guesswork - not judgement - to assess what will happen because we know little about the team and management.
All that we know is that there is less stability about teams in the championship than in the prem so there are more teams that could be in contention. The relegated teams and those relegated the year before have a huge advantage in the parachoute monies.
If I had to bet on the three most likely candidates, I would go with West Brom, Wolves and Charlton.