Financial report: Leicester City rely heavily on loans to be the best of the rest
Alamy | Leicester City chairman Aiyawatt Srivaddhanaprabha and Brendan Rodgers
Leicester City have completely altered their capital structure, relying almost entirely on debt to finance operations, going from a 50/50 equity ratio a few years ago.
Payable interest expenses rose significantly during the pandemic, as owners and loans from Macquarie Bank subsidise Leicester’s cash flows.
Why it matters: The club currently sit 11th in the Premier League, and did not proceed in the Europa League. Will no European football next season pressure the club to sell key players?
The perspective: Leicester have bet heavily on competing in the top of the EPL, taking up loans of €330 million over the past three years. 2021/22 looks like another year with big losses which put pressure on the club in relation to financial fair play.
22 February 2022 - 1:09 PM
Leicester City came just short of a Champions League spot for the second season in a row, but did clinch another top-six spot - while also winning their first-ever FA Cup.
The Foxes have for the past five years been the most consistent challenger to the big-six clubs, but in staying competitive, the club have injected €330 million of loans.
This season has been much more turbulent, as the club currently sit 11th in the league, and disappointingly didn’t progress from
Get smarter in minutes. Straight to your inbox
21-day free trial
Activate instantly with the link we’ll send you.
