On June 30, 2023, Leicester City Football Club disclosed its financial report for the year ended on that date, an accounting period that coincided with the season in which the team was relegated from the Premier League.
Despite performing well in the top flight over the past eight seasons, the team's performance in the current financial year has not matched the results on the pitch. This setback, combined with the high cost of maintaining a strong playing squad, was a key factor in the £89.7m (down from £92.5m in 2022) pre-tax loss. Despite a decline in turnover to £177.3m (£214.6m in 2022), operating income, gate receipts, sponsorship income and turnover all increased.
The decline in revenues was largely attributed to a reduction in Premier League prize money and broadcasting revenues, as well as the club's failure to compete in Europe for the first time in three seasons. However, the club realized a net gain of £74.8 million on player transactions (up from £9.2 million in 2022).
At the same time, the club has not neglected the development of the women's soccer team and continues to invest more in players, staff and facilities. In the second season of the Women's Premier League, the team improved its points total and ranking, and finished in the top flight for the third consecutive season.
In recent years, the club's financial position has reflected the investment necessary to remain competitive with the Premier League's top clubs. Under the leadership of Khun Chairmen Aiyawatt and Srivaddhanaprabha, parent company King Power International (KPI) continues to provide solid financial support for the Club's ambitions.Aiyawatt's conversion of a £194 million loan and associated interest into equity has significantly reduced the Club's debt to the parent company's debt.
The Club is in consultation with the Premier League and the EFL to ensure that its profitability and sustainability calculations comply with the relevant regulations. The Club is committed to dealing appropriately with any review of the Club in accordance with the rules, at the appropriate time and within the appropriate body.
Leicester City Chief Executive Susan Whelan said, "The 2022/23 season marks a major turning point in the Club's growth and success over nearly a decade and its impact will be felt for some time. We must now focus on rebuilding and seeking a return to the Premier League. Over the last three seasons we have finished fifth, fifth and eighth in the Premier League. Our targets and budget are reasonable for the 2022/23 season. However, for a club like ours, sustained sporting success justifies competing with the most prestigious clubs and pursuing ambitious levels of investment.
"The long-term financial support and commitment of the Khun Aiyawatt Kinggadhanaprabha family and the Srivadhadana family has enabled us to rebuild with confidence. We are extremely grateful to our fans for their trust and support. Their commitment and loyalty will continue to inspire our mission to restore Leicester City to the level we all desire."
