After “a year of continued investment” losses have widened significantly at Leicester City Football Club.
According to financial results for the year ending 31 May 2022, in retaining the Club’s primary playing assets while making further significant investments in player acquisitions and salaries, the Foxes’ pre-tax losses grew to £92.5m from £31.2m in the prior year.
The return of supporters to stadiums, an eighth-placed Premier League finish and a run to Leicester City’s first European semi-final in the UEFA Europa Conference League together generated a revenue figure of £214.6m for the year.
This is a drop in revenue compared to 2021’s £226.2m which is said to be principally due to the reversal of accounting timing differences in the recognition of revenue relating to the COVID-delayed 2019/20 season, whereby 20 per cent (£32.9m) of revenue from the 2019/20 season was recognised in the 2020/21 financial year.
Underlying revenue rose, with an upturn in UEFA revenue (£21.5m from £13.7m) and gate receipts increasing to £21m from £0.5m 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 the 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.
Following the successful development of the Club’s world-class training facility in Seagrave, north Leicestershire, the Club is currently finalising agreements with Leicester City Council in order to obtain a formal grant of 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 Club’s planning application in September 2022) – a long-term project that will further enhance and diversify the Club’s revenue generation capability.
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.”
