Leicester City: Nigel Pearson believes future is looking bright for club
Leicester City boss Nigel Pearson believes Leicester City are in a better financial position than the recent financial report suggests.
City's financial report for the season 2011-12 revealed record losses of £29.7 million.
A major cause for the increase in losses of £14.5m on the previous season was a direct consequence of the significant investment made in the playing squad with salary costs for the period rising to £27.7m from £16.6 m the previous season.
Pearson said the club had since undertaken measures to address the financial losses and that he had personally worked hard to shape his squad so it was competitive, but had a reduced wage expenditure and a greater sell-on value.
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"The club is working exceptionally hard to put the club in a long-term financially stable position," said Pearson.
"There are of course issues we need to address and we are working very hard at that. The figures that come out are things that influence that but we are working very hard as a club to make sure our long-term future is stable.
"We have owners who are fully committed to the club and an infrastructure which is very professional.
"We have to try to cut our cloth accordingly. It doesn't happen overnight.
"There are going to be slight anomalies in terms of how the figures appear but I can assure everyone there is a commitment to put ourselves in a financial situation which ensures the club has a stable future."
Pearson said the cost and value of the squad now was much different to the one he inherited in November, 2011.
"I am happy to work the way I work," he said. "We have to try to get a squad that is competitive and I think we are.
"We have a squad which is good and I think we have a squad that is actually worth something now.
"We have a number of young players who have a value, which is a completely different scenario to the squad I inherited.
"The value of that squad in terms of resale ability, we didn't have many what you would call assets.
"It is always difficult to get the balance right. We expect ourselves to be successful on the pitch and we will work hard to do that, but the job is bigger than just going out there trying to win football matches.
"Although on the surface, whenever you see financial figures, there is a tendency to look at just the negative side, but I do know we are in a much better position.
"We have a squad with value and we are working hard to bring the wage structure into a realistic zone.
That is something we will always try to do to make sure the business is a sound one."