The most recent Leicester City news is that the team reported losses of about £90 million for the 2022–2023 season, feeling the effects of both relegation and not playing in Europe.
Despite making a profit of £74.8 million from player sales, City revealed that they lost £89.7 million in 2022–2023. The two summer exits of James Maddison to Tottenham and Wesley Fofana to Chelsea resulted in the two largest fees.
Four reasons were given by City for the losses: a shift in the accounting period, a decline in ranking from ninth to eighteenth place, the costly firing of Brendan Rodgers and his coaching staff, and a loss of revenue due to a lack of European games.
The Premier League has accused City of breaking the Profitability and Sustainability regulations. The club responded with forceful words, but they also stated that they expect to be found in violation of the regulations.
According to reports, City will have to sell in the summer even if they get promoted to the Premier League in order to stay in compliance with regulations for the final stretch of the current campaign. But, they will see two revenue increases in their accounts for the next year.
Even though they occurred during the same summer as Maddison’s sale, Timothy Castagne and Harvey Barnes’ sales will be counted towards the 2023–2024 accounting period. Madison departed in June, but Later in the summer, Barnes and Castagne both moved out.
At an estimated cost of £38 million, Barnes, an academy graduate, became a pure profit for Newcastle United. Castagne, on the other hand, paid £15 million to join Fulham.
These have been City’s top two sales thus far in the accounting term, excepting Maddison. As a result, it will increase the accounts by £53 million; any more transactions made before July could increase this amount.
Relegation provisions were included in the contracts of a number of City players, which means that their pay will probably decrease in the upcoming accounting period. Additionally, players like Ayoze Perez, Jonny Evans, and Youri Tielemans went on free transfers, which may have been reflected in the accounts even if revenue is probably going to decrease by participating in the Championship.
