http://www.theguardian.com/football/2014/mar/05/wage-bills-leicester-city-nottingham-forest-losses Leicester City and Nottingham Forest, two of the clubs understood to be opposed to the Football League's financial fair play rules in the Championship, have reported heavy losses for the 2012-13 financial year. Leicester, owned by the King Power duty free company of Thailand and current leaders of the Championship, made a loss of £34m, according to their accounts just published, which follows £30m in 2011-12. Forest, owned by the Kuwaiti brothers Fawaz and Omar Al-Hasawi following the death of the previous owner, Nigel Doughty, in 2012, made a loss of £17m in 2012-13. Both clubs, which spent more on wages than their entire turnover, are heavily subsidised by their owners in the push to win promotion to the Premier League. Leicester's owners converted almost £120m of loans into equity in November. Doughty's estate converted £65m of their loans into equity in 2012, and the Al-Hasawis have loaned £35m, partly to pay off a remaining £20m owed to Doughty's estate. Leicester are understood to have been one of the clubs instructing the solicitors Brabners to ask for substantial changes to be made to the FFP rules backed by a threat of legal action. The rules were approved by an overwhelming majority of Championship clubs in 2012, and limit losses in the current year to £8m. Clubs losing more than £8m in 2013-14 face a transfer embargo, enforceable from January 2015, or if they have won promotion to the Premier League at the end of this season, a fine proportionate to the amount they lost. On the pitch, Forest remain in the Championship play-off places in fifth, despite successive losses. Jim Price, the Forest manager Billy Davies' relative and agent, and a suspended solicitor following the closure of his firm in Scotland, has been working at Forest and last year criticised FFP, claiming it is "illegal and unworkable". The league's chief-executive, Shaun Harvey, has pledged that the FFP rules will be "vigorously defended". Could be interesting.
Finally sorted... Rob Harris @RobHarris NEW: Leicester settles Financial Fair Play dispute with @EFL with £3.1m settlement. EFL says it's a "full and final settlement of all and any claims by the EFL against the Club and its officers"
So they (Leicester) basically get away with a fine of under 10% of the value of the original reported loss of £34m? Not really an incentive to stop over spending. Not when you consider the vast pots of money on offer in the PL.
Don't forget the administration and no pints deduction and selling the stadium only to buy it back for £20,000,000.
