Cash flow analysis: Leicester City's operating loss decreases cash balance second year in a row

24 March 2020

James Maddison
Photo: PA Images Leicester City invested heavily in the squad in 2018/19 - adding the likes of James Maddison, Söyüncü and Pereira to name a few. Here James Maddison during the latest played Premier League match between Leicester City and Aston Villa at the King Power Stadium on Monday 9th March 2020.

Despite a reduction of 148 per cent in cash flows from operating activities, Leicester City splashed out with their highest player spending to date - a total of £119 million and cash outflows of £90 million within the fiscal year.

Although key player Riyad Mahrez left in favour of Manchester City, the club needed to raise capital following a substantial outflow of £61.5 million, mainly stemming from player additions, causing the owners to inject just short of £60 million

The club won't reap the rewards of 2019/20 until 2021, projecting yet another year of financing concerns. 

Joseph Mailil, analyst jm@offthepitch.com

The 2018/19 season was marked by significant ups and downs at Leicester City, both on and off the pitch, as the tragic death of the club's beloved owner, Khun Srivaddhanaprabha, and the sacking of Claude Puel forced the club to reposition themselves. 

The so-far fruitful 2019/20 campaign may overshadow a financially disappointing 2019, in which the club posted their first loss since 2014. 
The Foxes invested heavily in squad improvements and infrastructure, forcing the club to take out a loan of £60 million from their owners. For the second year

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