Leicester City has taken out another loan, this time from Australian bank Macquarie, ahead of the upcoming Championship season. The loan, filed with Companies House, is secured against the club’s Premier League funds due until 2028, including parachute payments following their relegation.
Historically, Leicester has used loans to manage cash flow, with income from Premier League payments arriving at intervals. This new loan, the second of the year, comes as the club prepares for the summer transfer window, with no signings made so far.
The club has worked with Macquarie for nearly a decade, typically securing loans against future broadcast revenues. They’ve also used the bank to bring forward transfer fee payments, particularly in high-profile player sales. The most recent example was the £30m sale of Kiernan Dewsbury-Hall to Chelsea last summer.
As Leicester transitions to the Championship, a significant drop in revenue is expected. In their previous Championship season, turnover fell by £72m after relegation, and sponsorship and broadcasting deals are anticipated to decline further. However, the club’s share of the Premier League’s broadcast deal is expected to yield £117m.
