Leicester City has today announced its financial results for the year ending 31 May, 2012 â a period of further on-going, strategic investment designed to ensure the long-term prosperity of the Football Club. Todayâs announcement highlights the Srivaddhanaprabha familyâs commitment to deliver sustainable success for the Football Club, and the continued support of KPI which will underpin the realisation of this vision. This whole-hearted commitment has been shown through the following actions. In September 2012, the Srivaddhanaprabha family placed Leicester City at the heart of their business operations under the direct ownership of King Power International (KPI) - the parent and holding company of King Power Group, whose turnover (US$1.5 billion in 2011) is consistently ranked within the top 10 Duty Free Retailers globally. Further investment of £36 million from the shareholders during the 2011/12 season. The Srivaddhanaprabha familyâs purchase, through its K Power Holdings company, of the Clubâs home, King Power Stadium, in February 2013. Since purchasing the Club, the owners have undertaken a restructuring of Leicester Cityâs balance sheet to pay off external third party debt. At the time of purchasing the club in 2010, third party debts owed by the club, amounted to £23.2 million. The start of a process ensuring compliance with Financial Fair Play regulations which will come into place in season 2013-14 for Clubs competing in the Football League Championship. Continued long-term investment The Club recorded losses in the year to 31 May, 2012 of £29.7m (2011: £15.2m) â an increase of £14.5m on the previous year. Todayâs announced results relate to the 2011/12 season, in which the Club was playing in the Football League Championship. The majority of the increase is as a direct consequence of the significant investment made in the playing squad as part of the Clubâs on-going efforts to build a talented squad capable of winning promotion to the Premier League. This has led to increased first team player wage costs and amortisation. Total salary costs increased accordingly to £27.7m in 2011/12 from £16.6 million (2010/11). The Club has also invested £4 million into long-term capital and infrastructure improvements to its training ground, match day and stadium facilities, the benefits of which will be felt for years to come. This investment in the team and the facilities of the Club was funded by the shareholders advancing loans of a further £36 million during the year. £31.6 million of this funding was provided by K Power Sports Investment (âKPSIâ) and a further £4.4 million by King Power International (âKPIâ). A process is also ongoing to review the capital structure of the Club so that this debt can be restructured into equity, further strengthening the balance sheet. Turnover increased by £4million to £21.4million (2011: £17.4m), primarily a result of increases in commercial revenue, including that generated from a pre-season friendly against Real Madrid in July 2011 and partnership renewals with globally-recognised brands such as Singha Beer and Air Asia. The increase in turnover is also helped by the Clubâs progress to the Sixth Round of the FA Cup. Match receipts remained relatively consistent despite the challenging climate faced by clubs of comparable size and league position; with average attendances subject to a slight decrease to 23,036 (2011: 23,709). Season Ticket sales for the current 2012-13 campaign remain stable in comparison with recent seasons. Purchase of the King Power Stadium: âOur home back in our handsâ The Clubâs financial and operational position has also been strengthened after the year end thanks to the purchase by the Srivaddhanaprabha family, through its K Power Holdings Co Ltd, of King Power Stadium, the Clubâs home for nearly 11 years. The stadium was purchased from its previous owner, an American pension fund manager who had owned the stadium, since the Clubâs period in administration. Under the ultimate ownership of Vichai Srivaddhanaprabha, the Leicester City Chairman, and Aiyawatt Srivaddhanaprabha, the Clubâs Vice Chairman, King Power Stadium joins the Football Club as an integral part of the familyâs major business and sporting interests. The purchase also concludes the restructuring of the Clubâs balance sheet, to remove all significant third party debt. Financial Fair Play compliance From the start of the 2012/13 season, the Football League introduced a framework for Financial Fair Play regulations, which requires Championship clubs to stay within pre-defined limits on losses and shareholder equity investment. Sanctions for non-compliance will only be imposed in the January transfer window of the 2014/15 season, in relation to the results of the 2013/14 season. Leicester City Football Club has already initiated a series of processes that will help to ensure that the Club is compliant with Financial Fair Play before sanctions become active. As part of these measures, the Club is in discussions to convert its debt, into equity. Leicester City Chairman Vichai Srivaddhanaprabha said: âMy vision for Leicester City Football Club remains unchanged since purchasing the Club in August 2010. My vision is for Leicester City Football Club to take its place as a highly respected and successful Premier League club. As a Club, we should centre around the lives of the fans and the community of Leicester. We will hold the Clubâs heritage in trust, and develop the Club to ensure sustainability for future generations. My commitment to Leicester City has been gratifyingly reciprocated by the Clubâs loyal fans and partners, whose support continues to be valuable in helping the Club achieve its long-term objectives. My thanks go to every one of them for their support from the time of our arrival at Leicester City, and for the support I am sure we will receive throughout 2013 and beyond.â Leicester City Chief Executive Officer Susan Whelan added: âWe continue to strive for excellence in every area of the club, with the overall ambition of becoming an established, sustainable Premier League club. This is reflected in the long-term investments we have made in our playing, management and administrative staff and our capital assets, with the on-going support of King Power International. âWe remain entirely committed to safeguarding the Clubâs future and will ensure Financial Fair Play compliance ahead of 2013/14, regardless of our divisional status. âConsiderable increases in turnover brought about by improved commercial performance in challenging economic times are encouraging, and the restructuring of the Clubâs balance sheet is a further example of our ambition to develop a sustainable business model that will keep the Club on a sound financial footing in the long term.â
Its a pity Richard 111 was not dug up from under our pitch, couldn't the bastard of crawled those few yards?... we would be quids in now the bottom line on our results is...Kingpower are now free to completely fiddle I mean arrange the finances so we are within the silly regulations, god bless them every one..
Loses of nearly 30M. Thanks Sven But at least Nigel has turned some of the investments into assets with players like Knockaert, Wood, Schmeichel, De Laet etc. (I know some was signed this season) The training ground is now top standard. The stadium has had a lick of paint and a bit of a revamp. Something we the owners now own. About from Sven's trolley dash most of the money was well spent
An extra £11.1m on salaries from the previous year (almost double)! And people blame Nige falling out with players for them leaving or being frozen out! Next years accounts will be interesting. It will likely be the first in years in which spending dropped, yet we're having a much better season!
Stringer said The club is losing 89K a day and the wage bill for last season was 500K a week The owners are owed 61M by the club Absolutley ****ing reckless spending We need premier league football ASAP!!! The only way the club can stand on its own 2 feet with spending like this is if we get into the Prem. Its a good job we have a sensible manager now in Nigel Pearson. If only we never got rid of him to start with, our squad we have been alot better and wouldnt have this massive debt sitting on our head