By David Owen
March 3 – The full business benefits of Leicester City’s surprise charge to the Premier League title a couple of seasons ago have finally emerged, with the Midlands club announcing a towering pre-tax profit of £92.5 million for the year to 31 May 2017.
The figure – believed to be the biggest pre-tax profit recorded by a single club in Premier League history – followed a Champions League campaign in which the eccentricities of UEFA’s cash distribution rules resulted, famously, in the Foxes receiving more from their run to the quarter-finals than Real Madrid got for lifting the European Cup.
It now looks all but certain that, as predicted by Insideworldfootball last November, 2016-17 will be a record season for Premier League club profitability. This is on the back, largely, of the revenue jump provided by the new TV deals.
Full analysis of the Leicester results will have to await arrival of the accounts at Companies House. However, the announcement on the club website revealed massive top-line growth, with turnover soaring from £128.7 million to £233 million.
The Foxes benefited from the same broadcasting boost as everyone else, supplemented by their €81.7 million in Champions League payments and a 42% advance in ticket revenue that was the product of a string of European nights.
Operating costs – which are far below the big boys – climbed by 59% to £65.5 million. The club also said it had “invested £102 million in player registrations, which was partly funded by a £38 million profit on player trading”.
Title-winning heroes N’Golo Kanté and Danny Drinkwater have already left the club on big money transfers and with Riyad Mahrez seemingly very likely to do the same in the summer, player trading profits should remain high for some time to come.
Susan Whelan, chief executive, said: “Securing a legacy for the club’s recent achievements is among our greatest responsibilities, as it will be the platform from which Leicester City can grow and achieve further, sustainable success in the future.
“It is central to King Power’s vision for the club and the determination of the Srivaddhanaprabha family to reward our fans for their immeasurable and unconditional support.
“Fundamental to that legacy is the commercial consolidation of the opportunities success has afforded the club.
“This allows us to make further long-term investments in outstanding players and key personnel; infrastructure to strengthen our operations and services; and world-class facilities such as our proposed new training facility in Charnwood – all of which will aid the club’s continued growth for generations to come.
“As with the on-pitch achievements of which these financial results are a consequence, we remain realistic about the immediate likelihood of them being repeated, but are determined to make sure their impact strengthens our aspirations and belief in the future.”
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