Leicester City Financial Results 2023/24
- Matchday Finance
- Jul 27
- 11 min read
Updated: 5 days ago
After spending just one season in the Championship, Leicester City's return to the Premier League ended in a hugely disappointing 2024/25 campaign, resulting in their second relegation in three seasons.
Leicester is widely regarded as a major club, having spent nine consecutive seasons in the Premier League between 2014 and 2023. That era included their unforgettable 2015/16 title-winning season, five top-10 finishes, and four European campaigns.
Leicester’s first relegation in 2022/23 came as a major surprise given their strong performances in previous seasons and left the club with a heavy financial burden. Operating with the highest wage bill outside the top six, they had built a cost structure reliant on consistent top-half Premier League finishes and regular European football—well beyond what their revenues could support. This imbalance led to losses exceeding £180 million across 2021/22 and 2022/23. In retrospect, their spending model was unsustainable, hinging too heavily on the difficult goal of continuous European qualification for a club of Leicester’s size.
This report focuses on the 2023/24 season, their first back in the Championship, and the club’s most recently published financial results. On the pitch, the season was a success, with Leicester winning the Championship title and securing immediate promotion back to the Premier League — a stay that ultimately lasted just one year.
Looming over this, however, is their failure to comply with Profit and Sustainability Rules (PSR), largely due to the heavy losses sustained during their Premier League years. The situation was complicated by their relegation in 2022/23; following an appeal, it was determined that the Premier League did not have jurisdiction over Leicester at the time their accounts were filed, as they were then a Championship club.
However, a recent tribunal following a lengthy arbitration process has ruled that the Premier League does, in fact, have the authority to bring charges against Leicester. This means the club could still face sanctions, including a potential points deduction. The outcome remains uncertain.
Leicester have been owned by King Power since 2010, initially under the stewardship of Thai billionaire Vichai Srivaddhanaprabha. Over the years, the owners invested heavily — over £400 million — a commitment that famously delivered the Premier League title in 2015/16. Following Vichai’s tragic death in a helicopter crash in 2018, ownership passed to his family, with his son Aiyawatt Srivaddhanaprabha now serving as CEO.
Overview of Leicester City's Financial Results Season 2023/24
Overall revenue fell sharply from £177 million to £105 million, as expected following relegation and the resulting drop in Premier League payments. Salaries and wages were almost halved to £107 million, though they still exceeded the club’s income. Player sales generated £71 million in profit, which helped reduce the overall loss to £19 million—an improvement on the £90 million loss recorded the previous season.
Leicester changed their accounting period in the 2022/23 season by extending it by one month to end in June 2023. This adjustment aligned their financial year with most Premier League clubs and allowed them to include season-end player sales in the same reporting period if necessary. When comparing year-on-year figures, this extension should be taken into account. It primarily impacts operating expenses like salaries and wages, since revenue generated in June is minimal.
Financial Highlights for the 2023/24 Season:
Turnover
Leicester’s revenue fell to £105 million in 2023/24, down from £177 million the previous year. This was the second-highest turnover in the Championship.
Broadcasting income totalled £54 million, largely from Premier League parachute payments, but still significantly below the £114 million received in their final top-flight season.
Matchday income remained flat at £18.4 million—boosted by four extra home games but offset by lower ticket prices after relegation. This was also the second-highest in the league.
Commercial revenue declined from £44 million to £33 million, mainly due to reduced sponsorship income.
Staff Costs
The club’s wage bill dropped by £99 million to £107 million—still the highest in the Championship.
Amortisation charges fell from £30 million to £17 million following player sales but remained the third-highest in the league.
Total staff costs (including amortisation) stood at £154 million the highest in division and more than triple that of any club not receiving parachute payments.
The club generated £72 million in player trading profit, primarily from the sales of Harvey Barnes, Timothy Castagne, and Kiernan Dewsbury-Hall.
Profitability
Leicester recorded a pre-tax loss of £19 million, significantly improved from the £90 million loss in 2022/23. This was the fifth-largest loss in the division.
Player Trading
The club spent £62 million on new signings, including Harry Winks, Tom Cannon, Conor Coady, Mads Hermansen, Stephy Mavididi, and the permanent transfer of Issahaku Fatawu.
Player sales generated £81 million, led by the transfers of Barnes (to Newcastle), Castagne (to Ipswich), and Dewsbury-Hall (to Chelsea).
Football Debt
Leicester had the highest debt in the Championship at £212 million as of June 2024. This includes £164 million in loans from the parent company (interest rates between 1–2%), and £55 million in bank loans
The club also owed £77 million to other clubs in transfer instalments but offset by £85 million receivable from player sales.
Cash Flow
Operating cash outflow before investment and financing was £31 million, the second-highest cash outflow in the league.
£44 million was spent on player acquisitions, with an additional £2 million invested in infrastructure. The club received £56 million from player sales.
To cover the funding gap, the club increased loans by £20 million.
Financial Outlook
Leicester’s return to the Premier League in Season 2024/25 will deliver a major uplift in revenue, with turnover expected to exceed £170 million. While staff costs will rise from Championship levels, they are unlikely to return to the heights of 2022/23. Without significant profits from player sales, the club is projected to record a small loss—though this will depend heavily on wage control.
A key uncertainty remains the ongoing Profit & Sustainability (PSR) case with the Premier League. The club notes that “at the current time it is impractical to estimate the likely impact of any sanctions.” However, a potential points deduction—particularly if applied in the Championship—would present a serious challenge for the club this upcoming season.
Next Read
For a full breakdown of the EFL Championship’s 2023/24 financial results, check out our recent blog: EFL Championship Financial Results Season 2023/24
Turnover
After relegation from the Premier League, broadcast revenue dropped sharply as anticipated. Matchday income held steady, while commercial revenue declined by 25%.
Their total revenue of £105 million was the second highest in the Championship, surpassed only by Leeds, who set a new all-time divisional record.
Matchday Revenue
Matchday revenue is influenced by factors such as the number of home games, average attendance, ticket prices, and the club's ability to generate income from hospitality events and corporate boxes. The only exception to this is domestic cup matches, where revenue is shared between the clubs and the FA.
Leicester City’s King Power Stadium holds 32,262 fans, and during the 2023/24 season, the club averaged 31,238 attendees per league game—96% of capacity and the third highest in the Championship. Around 20,000 of those were season ticket holders. With four additional home league games compared to the Premier League, the total number of paying fans rose by 18%.
Despite the increase in attendance, revenue per fan declined following relegation, falling from £27.60 to £23.40. This remained the second highest in the division, though it was still 30% lower than Leeds.
As a result, Leicester generated £18.4 million in matchday revenue—the second highest in the Championship.
Plans are in place to expand the King Power Stadium by 8,000 seats, increasing its capacity to 40,000. However, there is currently no set timeline, and a recent club statement indicated that construction is unlikely to begin before 2026. That said, the planning approval is only valid until the end of 2028, meaning work must commence before then.
Broadcast Revenue
Clubs relegated from the Premier League receive parachute payments for up to three years. In the first year after relegation, a club receives 50% of the Premier League’s equal share distribution, followed by 45% in the second year and 20% in the third—if the club had spent more than one season in the Premier League.
For the 2023/24 season, the equal share was valued at £95 million, meaning Leicester received approximately £47 million in their first year following relegation in 2022/23. This gives them a significant financial advantage over clubs not receiving parachute payments, who typically receive around £10 million.
Commercial Revenue
Leicester City's commercial revenue—which covers income from sponsorships, merchandise, hospitality, stadium tours, and other non-football activities—fell by 25% to £33 million in the 2023/24 season. This drop was expected following relegation from the Premier League.
The decline was largely driven by a sharp fall in sponsorship revenue, which dropped from £32 million to £21.5 million. It was noted in the accounts that £15 million was paid to King Power for sponsorship and marketing inventory, which includes the stadium naming rights.
During 2023/24, Leicester’s front-of-shirt sponsor was once again King Power, though the agreement lasted just one season. The club has since signed a two-year deal with BC.Game, a crypto-based gambling brand, running through to the end of the 2025/26 season. After that, Premier League clubs will be banned from displaying betting company logos on the front of shirts. However, the EFL has opted not to follow suit, citing the greater financial reliance of its clubs on gambling sponsorship.
Staff Costs
Following relegation, Leicester City's player wage bill fell sharply from £206 million to £107 million. Amortisation—the spreading of transfer fees over the length of player contracts—also declined, from £77 million to £47 million. While such reductions are typical after a drop to the Championship, the scale was especially notable for Leicester, who prior to relegation had the highest wage bill in the Premier League outside the traditional ‘big six’.
Leicester’s total staff costs for the season reached £154 million, the highest in the Championship. However, this figure likely includes promotion bonuses of around £20 million following their immediate return to the Premier League.
The chart below illustrates the substantial financial advantage enjoyed by clubs receiving parachute payments, with staff costs approximately three times higher than those of clubs without this support.
Profit on Player Sales
It is common for relegated clubs to sell players after dropping divisions—whether to generate one-off profits to offset losses, reduce the wage bill, or because players have release clauses in their contracts. All three relegated clubs sold multiple players, generating over £230 million in combined revenue.
Leicester alone generated around £71.8 million in profit from the sales of Harvey Barnes to Newcastle, Timothy Castagne to Fulham, and Kiernan Dewsbury-Hall to Chelsea. The sales of Barnes and Dewsbury-Hall were especially profitable, as both were academy graduates, meaning nearly the entire transfer fee (after transaction costs) counted as profit. These deals were almost certainly driven by the need to comply with Profit and Sustainability Regulations (PSR).
Profit and Loss
In recent seasons, Leicester City have posted substantial financial losses, leading to charges from the Premier League for breaching its Profit and Sustainability Rules. After their extraordinary Premier League title win in 2015/16, the club initially enjoyed a financial boost, including income from European competition. However, in their efforts to stay competitive among the league’s elite, Leicester have since incurred heavy losses.
This challenge is common among so-called "challenger" clubs. Without the vast commercial and matchday revenues of the traditional 'big six', maintaining a top-tier squad demands investment levels that can only be sustained through consistent European qualification—something that is difficult for a club of Leicester’s size to achieve. Aston Villa may currently be facing a similar balancing act.
Leicester have now recorded cumulative losses of £308 million since their Champions League campaign, a financial trajectory that ultimately led to the Premier League’s charges.
Following relegation, Leicester made significant cuts to their operating costs. However, the club still maintained a relatively high-cost structure, with operating expenses amounting to 125% of revenue. As a result, EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) stood at a negative £26 million.
While amortisation and impairment charges dropped from £77 million to £47 million, and player sales generated £72 million in profit, these gains were not enough to fully offset the club’s overall spending. Leicester closed the season with a pre-tax loss of £19 million—however a big improvement on the £90 million loss posted the previous year.
Leicester’s £19 million loss was the sixth largest of any club in the Championship.
Player Trading
Leicester’s spending on player transfers was relatively restrained during their recent Premier League seasons. Over the three years leading up to their relegation in 2022/23, they spent £185 million on new signings while generating £171 million from player sales—resulting in a net spend of just £14 million, the second lowest in the Premier League during that period.
In the 2023/24 season, Leicester invested £62 million on signings including Harry Winks, Conor Coady, Mads Hermansen, and Stephy Mavididi, with Fatawu Issahaku’s loan also made permanent following the club’s promotion.
At the same time, they made several high-profile sales following relegation. Harvey Barnes joined Newcastle for £37 million, Timothy Castagne moved to Fulham for £11 million, and in June 2024, Kiernan Dewsbury-Hall was sold to Chelsea for £30 million—a transfer likely influenced by the club’s need to meet Profit and Sustainability Rules (PSR).
Leicester’s £62 million spend on new signings was the highest in the Championship for the 2023/24 season. However, after accounting for player sales, their net transfer spend stood at -£19 million, the fifth lowest in the division.
Player trading is a key part of the financial model in the Championship, helping clubs meet profitability regulations and reinforcing the league’s role as a developer of talent. As a result, the Championship typically functions as a net seller. In 2023/24, clubs across the league recorded a combined net transfer balance of -£209 million. All three relegated clubs were significant sellers, with Southampton alone generating an impressive £145 million from player sales.
At the end of the 2023/24 season, after securing promotion to the Premier League, Leicester strengthened their squad by signing Skipp, El Khannouss, and Okoli. However, following their immediate relegation, the club has remained largely inactive in the transfer market, with no significant arrivals or departures so far in this summer’s transfer window.
Football Net Debt
Debt remains a key source of funding for Championship clubs. By the end of the 2023/24 season, total debt across the league had reached £1.56 billion—equivalent to 163% of total turnover. This marked an increase of £250 million over the year, largely driven by changes in club makeup, with Leicester, Southampton, and Leeds contributing significantly due to their sizeable existing loans. Notably, around 75% of this debt consists of loans from related parties.
Leicester’s total debt stood at £226 million at season’s end, including £164 million owed to related parties—of which £23 million related to hire purchase agreements for the stadium—and £55 million in bank loans. After accounting for £14 million in cash and
receivables, the club’s net debt was £212 million, the highest in the division.
Leicester’s related-party debt is owed to owner King Power International. This loan carried an interest rate of 1% for short-term and 2% for long-term loans. This has been reduced from 6%.
As a result of their recent player trading Leicester owe £77 million to other clubs in outstanding transfer instalments. This liability is offset by £85 million in transfer fees receivable from player sales.
Cash Flow
In the 2023/24 season, Leicester reported negative operating cash flow of £32 million—the second worst in the Championship. While operating cash flow can fluctuate year to year due to changes in receivables and payables, Leicester have consistently posted negative figures. Over the last three seasons, high operating costs relative to revenue have contributed to cumulative operating cash outflows of £112 million.
During the same three-year period, the club spent £150 million on player acquisitions and invested an additional £13 million in facility upgrades, while generating £132 million from player sales. This resulted in net investment cash outflows of £30 million.
To cover the overall funding gap, Leicester increased their borrowings by £100 million, with the remainder financed from existing cash reserves.
It’s clear the club has been heavily reliant on financial support from their owners, King Power. Since acquiring the club, King Power has invested a total of £444 million, a substantial figure by any standard.
More broadly, Leicester are not alone in their financial challenges. In 2023/24, no Championship club reported positive operating cash flow. Across the division, total operating outflows reached £422 million, with a further £36 million in investment outflows. These were largely financed through £417 million in new funding and £41 million drawn from cash reserves.
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