By David Owen
March 20 – Leicester City, the Thai-controlled club riding high in the Premier League once again under Brendan Rodgers, incurred a hefty pre-tax loss of £67.3 million for the covid-impacted 2019-20 financial year.
Not even the big-money transfer of centre-back Harry Maguire to Premier League rivals Manchester United could prevent losses for the year to May 31 widening substantially from £20.2 million in 2018-19.
With the end of the season delayed, turnover dropped back from £178.4 million to £150 million, the lion’s share – £107.6 million – from broadcasting. This was more than absorbed by the wage bill, with employee costs rising by about £8 million year-on-year to £157.5 million.
The club indicated that almost £33 million of revenue related to 2019-20 had been deferred to the present financial year. This, its high league position and the bonus of a Europa League run which ended in the round of 32 should all contribute to a markedly better financial performance in 2020-21.
The Maguire transfer was largely responsible for a £63 million profit on player trading. The cash deficit on the club’s transfer dealings was also well down, from almost £40 million in 2018-19 to less than £17 million.
A substantial year-on-year advance from £18.2 million to £23.9 million in administrative expenses was attributed chiefly to “settlement of a legal dispute”.
The club said it had revised the construction schedule for its new training ground. Even so, it invested £70.5 million in the facility over the course of the year, up from £13.4 million.
By the end of the year, the amount owed to King Power International, the Foxes’ parent, had leapt from just £10.4 million to £126 million. Short-term bank loans, mainly with Macquarie, were also up, from £38.2 million to £64.7 million. The club said, moreover, that since the year-end, it had “increased and extended its £45 million facility with Macquarie Bank to January 2022”, while entering into “a further £16.4 million facility with the same bank”. If it can nail a Champions League place, this will look like good business.
Contact the writer of this story at moc.l1714370403labto1714370403ofdlr1714370403owedi1714370403sni@n1714370403ewo.d1714370403ivad1714370403