February 2 – Many clubs have significant debts that are owed to owners and get paid off when the club is sold on.
But in a massive of commitment from Thailand’s Srivaddhanaprabha family, Leicester City’s owners have written off £194 million they have loaned to the club over the last 10 years in a debt-for-equity swap. The club’s last filed accounts show they have £267 million of debt.
This means Leicester have been relieved of the debt to parent company King Power.
The club’s chairman Aiyawatt Srivaddhanaprabha (pictured) is also the chairman of Bangkok-based KPI, a travel retail group, which is fully owned by his family.
Despite the unusual gesture, Leicester know they can’t compete financially with the likes of Chelsea, Manchester United, Manchester City, Liverpool, Arsenal and Tottenham Hotspur..
Instead they have a sensible strategy to grow the club commercially.
“Maintaining long-term stability is vital for sustainable growth and a fundamental principle that has always guided our investments in the club’s future,” Srivaddhanaprabha said.
“We want to make sure we continue on that path from the strongest, most secure financial footing.
“I believe with all my heart in Leicester City and what the club can achieve for our fans, our people and our communities – in Leicester, Thailand and around the world.
“The faith they continue to place in us to run their club responsibly with ambition and integrity guides our decision making and remains vital to us building on one of the most successful eras in the club’s history.”
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