Losses treble at Foxes as club invests heavily in players
Investment in players in the 2021/22 season saw losses almost treble at Leicester City FC, according to newly-filed accounts.
The Foxes have posted a deficit of £92.5m for the year ending May 31 2022, up from a loss of £31.2m in 2021. The club is putting the performance down to retaining key players and buying others.
A return of supporters to stadiums, an eighth-placed Premier League finish and a run to the club’s first European semi-final in the UEFA Europa Conference League generated a revenue figure of £214.6m for the year – down slightly on £226.2m posted in 2021, when accounting timing differences brought on by the pandemic meant that 20% of extra turnover was brought forward from the delayed 2019/20 season.
Underlying revenue rose, with an upturn in UEFA revenue (£21.5m from £13.7m) and gate receipts increasing to £21m from £500,000 as supporters returned to stadiums. The increase in revenue was partially offset, however, by a reduction of £6m in Premier League revenue for 2021/22 compared with the previous year due to a lower finishing position.
Season 21/22 was the club’s second season operating at professional level in the women’s game. Additional investments were made into both its playing squad and the facilities at Belvoir Drive to further professionalise the women’s and girls’ football operation. The club’s first FA Women’s Super League season ended with top-flight status secure.
The Foxes are currently finalising agreements with Leicester City Council to get planning permission for the expansion of King Power Stadium and the development of its wider site, following the Council planning committee’s unanimous approval of the planning application in September 2022.
Leicester City chief executive Susan Whelan said: “Under 12 years of King Power ownership, we have consistently sought to invest in the club’s future and to build from established positions of strength.
“King Power’s unwavering support of the club provides a secure position from which to capitalise on our opportunities. However, in order to remain compliant with the game’s regulations both domestically and in Europe – where we aim to compete regularly – our ongoing investment strategy must continue to reflect our underlying revenue progression.
“Our long-term ambition is to achieve this through on-pitch success, the commercial growth that comes with it and through the expansion of our stadium and the development of the associated masterplan. In the shorter term, as we look to continue to compete with more established opponents, profits from player trading and continued successful recruitment will continue to feature prominently in our strategy. This approach has served us well in the past, bolstering our capability to keep investing in the growth of the club and forming a cornerstone of the most successful era in Leicester City’s history.
“Everyone at the club remains committed to the ongoing and responsible establishment of Leicester City as a consistently competitive force in the game’s leading competitions and a powerful force for good in our communities.”
The Foxes have struggled in the Premier League this season. The club currently sits in 15th position just two points above the relegation zone after three straight losses.
