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Leicester City Financial Report 2024/25

Leicester City Financial Results 2024/25

This report covers Leicester City’s 2024/25 season, their 120th year in existence and their first season back in the Premier League following promotion from the Championship. Leicester’s 2024/25 campaign was a complete failure. The club finished 18th on just 25 points and were relegated with five matches still to play. One particularly grim statistic saw Leicester fail to score in nine consecutive home league games, a Premier League record. Overall, it was a dismal season. Their return to the Championship in 2025/26, supported by Premier League parachute payments, should have positioned them as strong contenders for an immediate return to the top flight. Instead, the club spiralled into decline. After a respectable start, sitting fourth after ten matches, results deteriorated sharply and by February they had slipped into mid-table. Matters worsened further when an independent commission imposed a six-point deduction for breaches of the EFL’s Profit and Sustainability Rules relating to their 2023/24 promotion season. The charges had originally been brought by the Premier League but were overturned on jurisdictional grounds, as the accounting period in question fell outside Premier League control. Once Leicester returned to the Championship, however, the EFL was able to pursue the case successfully. The six-point deduction ultimately proved decisive, with Leicester finishing 23rd, five points from safety, and suffering a shocking relegation to League One. 25/26 24/25 23/24 22/23 21/22 20/21 19/20 League Champ. EPL Champ. EPL EPL EPL EPL Position 23rd 18th 1st 18th 8th 5th 5th FA Cup Rd 4 Rd 4 QF Rd 5 Rd 4 W QF League Cup Rd 1 Rd 4 Rd 3 QF QF Rd 3 SF UEFA EL GS EL R32 The decline has been dramatic and serves as a warning to other clubs. Following their extraordinary Premier League title triumph in 2015/16 as 5,000-1 outsiders, FA Cup success in 2020/21, and several seasons of European football, Leicester continued to spend aggressively in an attempt to maintain their status among the elite. However, despite those achievements, the club’s revenue potential could never match that of the traditional “big six” clubs. At one stage Leicester’s staff costs were comparable to Tottenham Hotspur’s, an unsustainable position that contributed to heavy losses of more than £90 million in both 2021/22 and 2022/23, the latter ending in relegation from the Premier League. Those excessive costs ultimately contributed to the points deduction and subsequent fall into League One. Supporters have endured a torrid period and frustration has increasingly been directed at the club’s leadership, particularly director of football Jon Rudkin, over recruitment and strategic decision-making, alongside growing calls for the Srivaddhanaprabha family to sell the club. Despite the turmoil, Leicester will still benefit from Premier League parachute payments next season and will be, by some distance, the largest club in League One. On paper, they should be strong favourites for an immediate return to the Championship. After the chaos of the past two seasons, however, little can be taken for granted. Ownership Leicester City is owned by Thailand’s Srivaddhanaprabha family through their holding company, King Power International. The late Vichai Srivaddhanaprabha (1958–2018) acquired the club from Serbian-American businessman Milan Mandarić in August 2010 for a reported £39 million. Vichai’s death in October 2018, when his helicopter crashed outside the King Power Stadium shortly after a Premier League match against West Ham United, was a tragedy for his family, King Power and the club itself. Aiyawatt “Top” Srivaddhanaprabha, Vichai’s eldest son, succeeded him as chairman and remains the controlling shareholder with a 55% stake, while other family members hold the remaining 45%. The family’s wider football interests also include Belgian Pro League side OH Leuven, acquired in 2017, which has operated as a partner club and development pathway for Leicester players. Since acquiring Leicester, the Srivaddhanaprabha family has invested around £500 million into the club, with the majority committed following the club’s Premier League title success. Approximately half of this funding was injected between the 2019/20 and 2021/22 seasons to cover substantial operating losses and reduce external debt. Analysis of Financial Results 2024/25 The following analysis presents the club’s financial results across eight reports, including financial data and key performance statistics: Financial Summary Turnover Staff Costs Profit and Loss Net Assets Player Trading Football Net Debt Cash Flow Each report includes six years of historical data and can be exported to Excel using the “Get the data” option at the bottom of each report. Financial Summary Leicester’s return to the Premier League lifted revenues significantly through higher central distributions from the league. Although the club’s spending on new signings was relatively modest compared with the other promoted clubs, overall staff costs still exceeded 100% of revenue, albeit at a much lower level than during their previous spell in the top flight. With limited profits from player sales, the club reported a pre-tax loss of £71 million, compared with £19 million in the previous season. The club spent £67 million on player acquisitions, including Oliver Skipp and Bilal El Khannouss, while generating £13 million from player sales, primarily from Tom Cannon. Leicester generated negative operating cash flow of £38 million and net investment outflows of £22 million, requiring £56 million in new loans to fund the shortfall. The club also converted £124 million of inter-company debt into equity, reducing overall debt and strengthening its net asset position. Turnover Revenue derived from the club’s main operations, excluding player transfer income. The key sources include: Matchday income from ticket sales, Broadcasting income from central distributions from the Premier League, UEFA payments for participation in European tournaments, FIFA payments for participations in the Club World Cup and income generated through the club’s media platform. Commercial income from sponsorships, merchandising, non-football events, tours and other commercial activities. Other Revenue from football related activities not covered by the above categories, including player loan fees received. Turnover increased significantly following the club’s return to the Premier League, driven primarily by central distributions of around £117 million and higher commercial revenue associated with top-flight participation. Leicester’s turnover was the 15th highest in the Premier League in 2024/25. Matchday Revenue Matchday revenue is influenced by several factors, including the number of home fixtures, average attendance, ticket pricing, hospitality income and premium seating. Domestic cup competitions are treated differently, as gate receipts are shared between the participating clubs and the FA. Leicester City have played at the King Power Stadium since 2002, when it replaced the club’s historic Filbert Street ground. The stadium has been owned by the club since its acquisition by King Power International and had a book value of £45 million at the end of 2024/25, although the freehold remains owned by King Power Holdings Company. With a capacity of 32,261, it was the 12th-largest stadium in the Premier League during 2024/25. During 2024/25, Leicester averaged 30,911 supporters per league match, slightly down from 31,238 in the previous season. Although the club played four fewer home matches than in their Championship campaign, average revenue per supporter increased significantly from £23.40 to £30.00. As a result, overall matchday revenue rose from £18.3 million to £20.3 million. Leicester's matchday revenue was the 14th highest in the league. Broadcast Revenue Broadcast revenue is generated primarily through central Premier League distributions, UEFA payments from European competitions and the club’s own media activities. The 2024/25 season marked the third and final year of the Premier League’s current broadcast cycle, with total distributions broadly consistent with 2023/24 levels. Leicester’s 18th-place finish earned the club approximately £117 million in central distributions. Commercial Revenue Leicester’s commercial revenue has fluctuated in line with the club’s Premier League status. However, relative to the club’s size, its commercial performance remains strong by Premier League standards, ranking 10th overall in 2024/25 and reaching a club-record high. This was driven mainly by a significant increase in sponsorship income, which rose from £15 million to £27 million. The principal front-of-shirt sponsor is online cryptocurrency gaming platform BG.GAME, which has come under scrutiny after losing its UK licence in December 2024. The deal is reportedly worth £15–16 million per year, although this is likely to have fallen following relegation. The club’s main sponsors for 2024/25 were: Partner Category Est. Value (£/yr) Deal Status Sector BC.GAME Shirt sponsorship ~£15-16m/yr Multi-year (from 2024-25) Cryptocurrency Gaming Adidas Kit manufacturing £6-10m/yr (est.) Renewed May 2022 Sportswear King Power International Training wear In-house (owners) Ongoing (in-house) Owner / Travel Retail Walkers Snack / stadium ~£1-2m/yr (est.) Long-standing Snack Eleven Sports Fan engagement ~£500k-1m/yr (est.) New for 2024-25 Media / Tech Other commercial revenue was broadly unchanged, likely reflecting the club’s poor on-pitch performance. Overall commercial revenue rose to £49 million, an increase of £16 million on the previous year. This ranked Leicester 10th in the Premier League, although it still represented only around 15% of the commercial income generated by the league’s top clubs. Staff Costs Total staff costs include: ​ Salaries and wages paid to all employees, Amortisation of transfer fees (spreading the cost of a player’s acquisition costs over the length of their contract), Impairments incurred when a player’s estimated current market value falls below their book value. ​ Total staff costs are offset by profits from player sales when the net proceeds (transfer fee received minus any related costs) exceed the player’s net book value Between 2020/21 and 2022/23, Leicester had the highest staff costs outside the traditional “Big Six”, at levels close to Tottenham Hotspur. These costs significantly exceeded revenue and, in the club’s relegation season of 2022/23, reached 160% of turnover. This unsustainable ratio contributed to the substantial losses that ultimately led to Leicester breaching the Premier League’s Profitability and Sustainability Rules (PSR). Following their return to the Premier League in 2024/25, staff costs were maintained at a much lower level — around £75 million below the 2022/23 peak — although they still exceeded revenue, with the wage-to-turnover ratio standing at 109%. The clubs total staff costs were the 15th highest in the division. The club made only one significant player sale during the season, with Tom Cannon joining Sheffield United for £10 million. After accounting for his net book value, the transfer generated an estimated profit of around £7 million. Profit and Loss The key measures of profitability are: ​ EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) measures the club’s profitability before non-cash charges and financing costs. Operating Profit represents EBITDA less non-cash expenses, including depreciation of fixed assets and amortisation of player transfer fees. Profit Before Tax is the club’s overall financial result before corporation tax, after accounting for all costs, As noted previously, Leicester’s high staff costs relative to revenue have resulted in substantial losses, exceeding £90 million in both 2021/22 and 2022/23. The 2022/23 loss was particularly concerning given the club generated around £75 million from player sales during the season. By 2023/24, the year in which Leicester breached the EFL’s Profitability and Sustainability Rules (PSR), the club’s rolling three-year losses had exceeded £200 million. Even after applying the maximum allowable add-backs for areas such as youth development, women’s football and infrastructure investment, losses still remained more than £20 million above the permitted threshold of £83 million over the period (£35 million per Premier League season and £13 million for the Championship season). Leicester also weakened its position by failing to submit its 2023/24 accounts by the required deadline. Breaking down Leicester’s 2024/25 profit and loss account, the club generated total revenue of £187 million, an increase of £81 million year-on-year, driven primarily by higher Premier League broadcast income. Wage costs rose by £46 million, while other operating expenses increased by a further £8 million. As a result, EBITDA (earnings before interest, tax, depreciation and amortisation) improved by £15 million to negative £11 million. After accounting for £51 million in player amortisation and £6 million in depreciation, Leicester recorded an operating loss of £69 million. While still substantial, this was broadly in line with the Premier League average. However, it underlines the club’s continued reliance on profitable player sales to reduce overall losses. The club generated only £7 million in profit from player sales — its lowest figure in recent seasons — and, after accounting for £10 million in net interest costs, reported a pre-tax loss of £71 million. Leicester’s £71 million loss was the fifth largest reported in the Premier League in 2024/25. Chelsea recorded the league’s biggest loss at £262 million, the highest ever reported by a Premier League club. Overall, six clubs reported a profit, while combined losses across the division totalled £795 million. Three clubs also generated significant profits from one-off asset sales during 2024/25. Newcastle United recorded £133 million, Aston Villa £113 million and Everton £49 million, with all transactions taking place within their respective ownership groups. Excluding these one-off asset sale profits, total Premier League losses would have exceeded £1 billion for the season, the highest aggregate loss on record. Net Assets Net assets represent the difference between total assets and total liabilities and correspond to the club’s net equity. ​ Assets include fixed assets—such as player registrations, facilities, and goodwill—as well as current assets like trade debtors, transfer fees receivable, and cash. Liabilities comprise loans (from banks, shareholders, or group companies), transfer fees payable, trade creditors, deferred income (for example, advance season ticket sales), and other financial provisions. Leicester’s net assets increased by £57 million in 2024/25 to £114 million, primarily due to the parent company converting £124 million of shareholder loans into equity. At the end of 2024/25, the club reported total assets of £401 million, including £117 million in player registrations at net book value and £197 million in fixed assets, comprising the King Power Stadium (£44 million) and the Seagrave training ground (£100 million). The club was also owed £56 million in transfer receivables and held a further £30 million in other assets. These assets were offset by total liabilities of £286 million, including £103 million of external debt, £60 million owed to the parent company through loans and lease obligations, and £81 million in transfer fee payables. The remainder consisted of other liabilities and provisions. Leicesters net assets of 114 million are the 12th highest in the league. Player Trading Buying and selling players impacts several financial measures: Net player trading is the difference between player acquisition costs and income from player sales. Net Book Value is the total acquisition cost less accumulated amortisation (the write down of the player’s acquisition costs over the length of their contract) and reflects the remaining book value of the squad. Total ​​Squad Cost is the total acquisition cost of the current squad. Market Value is the aggregate market value of the squad as estimated by transfermarkt.com. Value add is the difference between market value and net book value. Leicester spent £67 million on player acquisitions during 2024/25, with the main signings being Oliver Skipp from Tottenham Hotspur, who endured a difficult season, and Moroccan international Bilal El Khannouss, who was named the club’s Young Player of the Season. The club’s main departure was Tom Cannon’s transfer to Sheffield United, contributing to the £13 million received from player sales during the year. Note, Kiernan Dewsbury-Hall sale to Chelsea at the start of the season, was completed in the 2023/24 financial year. Player Trading 2024/25: Dir Player Club (From/To) Age Window Fee (£) IN Abdul Fatawu Sporting CP 20 Summer £14.4m IN Oliver Skipp Tottenham Hotspur 23 Summer £20m IN Bilal El Khannouss Genk 20 Summer £20m IN Caleb Okoli Atalanta 22 Summer £13m IN Michael Golding Chelsea 18 Summer £5m IN Jordan Ayew Crystal Palace 33 Summer £5m OUT Tom Cannon Sheffield United 21 Winter £10m Leicester’s £67 million transfer spend was the third lowest in the Premier League in 2024/25, ahead of only Everton and Newcastle United. With a relatively low level of player investment, Leicester’s squad net book value remained broadly unchanged at £117 million. This figure reflects the accounting value of the squad, based on acquisition costs amortised over the length of player contracts, and is typically lower than estimated market value. According to Transfermarkt.com Leicester’s squad was worth approximately £215 million at the end of the season, implying an uplift of just under £100 million compared with the accounting book value. Leicester are also one of the few clubs to disclose their own squad valuation estimate, which they placed at around £200 million, broadly in line with the Transfermarkt assessment. Both Leicester’s squad net book value and estimated market value were among the lowest in the Premier League at the end of 2024/25, ahead of only Everton and Ipswich Town. Football Net Debt Football net debt represents the total amount owed by a club. It includes: ​ Third party loans, such as bank borrowings or other financial institutions. Related part loans from owners or other related entities (for example, a parent company or directly from the owner). These 'shareholder' loans are often converted to equity at a later date. Transfer fees owed to other clubs, net of transfer fees receivable as transfer fees are often settled over several years. Leicester’s recent losses have been financed predominantly through loans from the parent company, the majority of which have subsequently been converted into equity. In 2022/23, £192 million of shareholder loans were converted to equity, followed by a further £124 million in 2024/25. As a result, the amount owed to the parent company had reduced to £60 million by the end of 2024/25, comprising £34 million of loans and £26 million relating to finance lease obligations for the stadium freehold, with the arrangement extended to 2036. The club also had multiple loan facilities with Macquarie Bank totalling £103 million, of which £70 million was repayable within one year. These borrowings carried interest rates ranging between 7% and 9%. These liabilities were partly offset by £4 million in cash reserves and £8 million in loan receivables. At the end of 2024/25, Leicester also owed £81 million in transfer fee payables, offset by £56 million in transfer fee receivables. Premier League clubs’ total debt is expected to reach £3.7 billion (net of cash), down from £4.2 billion the previous year. Tottenham Hotspur carry the highest level of debt—primarily driven by stadium financing—followed by Manchester United, reflecting their highly leveraged ownership structure under the Glazer family. Leicester's net debt (after cash) of £158 million ranks as the 7th highest in the league. Cash Flow Cash Flows are reported in three categories: ​ Cash Flows from Operations refer to cash generated from the club’s core activities—revenue less day-to-day operating costs. Cash Flows from Investments includes cash spent on player acquisitions and facility improvements, net of player or asset sales. Cash Flows from Financing covers new loans or equity raised, less repayments or buybacks. If operational cash flow cannot fund investments, the shortfall is usually met through financing. The cash flow statement highlights Leicester’s underlying financial position. The club has consistently generated negative operating cash flow, with operating costs exceeding revenue. These losses, together with investment in players and infrastructure, have required ongoing funding through shareholder support and external borrowing. Looking at the past three years to smooth annual volatility, Leicester generated cumulative operating cash outflows of £121 million. Over the same period, the club invested £167 million in player acquisitions and a further £2 million in facilities, while generating £150 million from player sales. The resulting funding gap was financed through £114 million of new borrowing. During this period, £194 million of shareholder debt was also converted into equity, although this had no direct cash flow impact. Reporting Entity Year Reporting Entity (link) Period Pd. Majority Owner 2019/20 Leicester City Football Club Limited 1st June 2019 - 31st May 2020 12 King Power International Limited (Srivaddhanaprabha family) 2020/21 Leicester City Football Club Limited 1st June 2020 - 31st May 2021 12 King Power International Limited (Srivaddhanaprabha family) 2021/22 Leicester City Football Club Limited 1st June 2021 - 31st May 2022 12 King Power International Limited (Srivaddhanaprabha family) 2022/23 Leicester City Football Club Limited 1st June 2022 - 30th June 2023 13 King Power International Limited (Srivaddhanaprabha family) 2023/24 Leicester City Football Club Limited 1st July 2023 - 30th June 2024 12 King Power International Limited (Srivaddhanaprabha family) 2024/25 Leicester City Football Club Limited 1st July 2024 - 30th June 2025 12 King Power International Limited (Srivaddhanaprabha family) The reports represent Matchday Finance’s interpretation of the club’s published accounts. While every effort has been made to ensure the accuracy and completeness of the information presented, Matchday Finance makes no representations, warranties or guarantees, whether express or implied, as to the accuracy, reliability or completeness of the data. Users should not rely solely on this information for financial, investment or commercial decision-making and should refer to the club’s published accounts for official figures.

leicester-city-financial-report-2024-25

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