Leicester City’s latest financial accounts have just emerged and it doesn’t make for good reading, at all.
Leicester have largely struggled on the pitch of late and currently reside outside of the top two, albeit with a game in hand on Leeds United and Ipswich Town.
Off the pitch, matters are perhaps even worse, as the club look set to receive a points deduction next season after breaching Profit and Sustainability rules (PSR) during the 2022/23 season.
It doesn’t end there, however, as they could be in line for another breach this term, meaning a number of key players may be forced to depart before the end of the financial year, in June.
BBC Radio Leicester’s When You’re Smiling podcast welcomed football finance expert Kieran Maguire this week, who revealed all after the East Midlanders’ accounts were released.
Kieran Maguire ‘amazed’ at Leicester City’s worrying financial accounts
Maguire revealed a shocking revelation when discussing Leicester City’s recently published financial accounts.
“Like many people, I was quite taken aback,” Maguire said.
“I knew it wasn’t going to be a great year but the fact the club had to extend its financial year to 13 months to squeeze in a couple of sales to reduce the losses to just £90m, I think was indicative to what a challenge it was.
“We know that the revenue would be down but I was amazed to see that the wage bill went up so high.
“I think for the first time, in my knowledge, of the Premier League, they were paying more money out in wages than was coming in through the door in a non-Covid year.
“It’s the only time that’s ever happened in Premier League history.”
Leicester City face a summer of change
It’s going to be a summer of change for Leicester, as they’ll likely have to raise funds before the end of June to avoid a second PSR breach.
Naturally, Kiernan Dewsbury-Hall is expected to be one of the first players out of the door, given his potential sale would generate pure profit, having come through the club’s academy.
Wout Faes, a Belgium international, is another player who could bring in a fee in excess of £20m. The 26-year-old joined The Foxes in a £15m deal less than two years ago, so the club should be able to make a profit on him.
A lot will rest on the remainder of the season and pressure to gain promotion is no more apparent than now.
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