On April 3, 2023, the light of Leicester City soccer shone on the unveiling of the annual financial accounts. The fall of this accounting period coincided with the team's relegation season in the Premier League.
The strategy of investing in the first-team squad does not appear to have reaped the expected rewards, with the team failing to translate their on-pitch performances into financial results this financial year, despite their first eight seasons in the top flight. The fruits of the disappointment, coupled with the long-term overheads of maintaining a strong squad, combined to result in a pre-tax loss of £89.7 million, narrowing from last year's £92.5 million. Despite a dip in turnover, down to £177.3m, operating income rose marginally, with revenues from tickets and sponsorship all increasing.
The main reasons for the drop in revenues were a decline in Premier League prize money and broadcasting income, as well as the team missing European competition for the first time. However, the club achieved a slight balance through a £74.8m profit on net player transactions (£9.2m in 2022).
The development of Leicester City's women's soccer team has been equally valued, with the club's investment in players, staff and facilities helping the women's team to reach the top flight for a third consecutive season.
In recent years, the club's financial position has reflected the necessary investment in the men's soccer team to enable it to compete with the top clubs in the Premier League. Under the leadership of Khun Chairmen Aiyawatt and Srivaddhanaprabha, parent company King Power International (KPI) continues to provide solid security for the club's ambitions.Khun Aiyawatt has even converted a £194 million loan into equity, significantly reducing the club's financial burden.
The Club is consulting with the Premier League and the EFL to ensure that its profitability and sustainability calculations comply with the rules. Leicester City is committed to following the rules to ensure that any review is dealt with fairly.
Leicester City Chief Executive Susan Whelan has stated that the 2022/23 season has been a major setback for the club for almost a decade. She emphasized that despite this, the club will continue to rebuild and aim to return to the Premier League.The long term support of the Khun Aiyawatt Kinggadhanaprabha family and the Srivadhadana family Power has allowed the club to move forward into the future with confidence.
