No need to worry on £30m loss - Leicester City fans told
Leicester City have moved to reassure fans the club will be able to meet the demands of the Financial Fair Play Regulations.
City recorded losses of £29.7 million for the year ending May 31, 2012.
-
Susan Whelan
However, chief executive officer Susan Whelan said action had been taken to ensure the club does not fall foul of the sanctions that can be imposed on clubs posting big losses as part of the new rules.
From next season, City must not post losses of more than £8m in total, or they could face a transfer embargo during the January transfer window of 2015.
Business Cards From Only £10.95 Delivered www.myprint-247.co.uk
View detailsOur heavyweight cards have FREE UV silk coating, FREE next day delivery & VAT included. Choose from 1000's of pre-designed templates or upload your own artwork. Orders dispatched within 24hrs.
Terms: Visit our site for more products: Business Cards, Compliment Slips, Letterheads, Leaflets, Postcards, Posters & much more. All items are free next day delivery. www.myprint-247.co.uk
Contact: 01858 468192
Valid until: Friday, May 31 2013
The figures cannot exceed £3m in losses and a further £5m in equity through shares from the owners.
The club accounts show that turnover for the 2011-12 season increased by £4m, mainly through an increase in commercial revenue, and manager Nigel Pearson's squad restructuring has noticeably reduced the size of the squad and the wage bill.
Whelan said the club had plans in place to meet the regulations.
"The club and the commercial team have been working very hard to increase overall revenue," she said.
"However, the club has also reviewed its debt structure and is in discussions about restructuring this.
"The club and the coaching management continue to manage the playing budget to ensure the club can comply with FFP."
There were reports that City were one of three clubs that voted against the regulations.
But Whelan said the club fully supported the principles of FFP, which are aimed at addressing the number of clubs that spiral into financial difficulties.
"Leicester City supports the principles of FFP, and will be compliant with the regulations when they come into force with the commencement of the 2013-14 season, if at that time the club remains in the Championship," she said.
"The rules in the Premier League are, of course, different."
The club's owners and shareholders, the Srivaddhanaprabha family, further invested £36m in the club during the 2011-12 season.
Whelan said FFP did not alter their long-term plans for building City into an established Premier League club.
"The rules apply to all the clubs in the Championship so the playing field will remain level, although the parachute clubs will clearly have a financial advantage," she explained.
"The regulations will not hinder the owners' ambitions for the club.
"The owners have never stated a time frame in any case for promotion; they have always committed their support and resources to the attainment of this vision."
20 Comments
View all
by DorsetFox
Monday, March 04 2013, 1:14PM
“Makes you laugh- knocks Sky but subscribes to it
Why does this site attract so many...”
by Coalvillefox
Monday, March 04 2013, 12:42PM
“I think this will be the last of these huge losses as we have not spent as much on players and wages this season. This does date back to May last year and must cover the free spending svens reign.Plus whatever pay off we had to give him and his team. Squirrill , if we don't go up this season, why will it take many years to achieve it again? Who knows? This must be Lulu piles dream article. Finances and yet another chance to bash our owners. Is anybody surprised he hasn't got a job? Nope didn't think so!”
by DorsetFox
Monday, March 04 2013, 10:47AM
“Geoff
LoLo never comments on football- just the politics - I have no idea if he knows the game or not.
The good news- Dob seems to have gone for a while - but at least he commented on the team and tactics.
We always have one”
by lolojones
Sunday, March 03 2013, 7:12PM
“oh and btw, when i had sky previously i told them i had lost my job and couldnt afford it anymore so they gave me it half price for a few months. small victory over the those who have destroyed and sold out the game.”
by lolojones
Sunday, March 03 2013, 7:10PM
“football needs a revolution - simple as”
by Happy_Fox
Sunday, March 03 2013, 3:59PM
“Lolo - You haven't blamed the Thais for our previous administration yet. Oh that's right,we managed to do that long before they hit the scene.”
by ghostof66pah
Sunday, March 03 2013, 3:01PM
“Plym Fox..
You can watch LCFC most games for just £15. If you cannot afford that i'm sorry but £15 in the Championship is a fantastic price.
IF we go up then you'll be able to see the difference in price. These owners that some are wetting themselves over will put the price up by a lot and then the cost will prevent most of us from going.
BUT you need to know that SKY sports costs about £50 a month which is around £600 a year so £450-£500 for a season ticket don't seem so much taking that into consideration.
So the time is NOW to watch the CITY.”
by PLYMFOX01
Sunday, March 03 2013, 12:46PM
“Maybe something should be done to put more "bums on seats". Most people (myself included) cannot afford to go to watch fooball any more hence empty seats even at some Prem grounds.
Next season the biggest ever TV deal comes into play, the vast majority of the money no doubt being used by clubs to line so called "superstars" pockets. You will have agents demanding even more money. QPR recently made some signings in the transfer window here they are bottom of the Prem but offering stupid wages of up to £100k per WEEK. I know they won yesterday but if they get relegated they will proably do another Portsmouth.
Leicester City now have huge debts,should the owners pull out (and I hope that doesnt happen) administration could beckon again.
Football says it is going to be governed by financial fair play, but clubs continue to pay stupid wages hence charging stupid prices for people to watch matches. Man City recently returned nigh on 1000 tickets to Arsenal because the Man City fans quite rightly refused to pay £62 PER TICKET that Arsenal were charging.”
by TheGeofflane
Sunday, March 03 2013, 11:50AM
“One more of lolo's rants deserves an answer: look at the Spanish League and how it is financed? They'll even sell a municipal graveyard to finance Real Madrid. Being. clearly, an accountant you will know Spanish football is run for the benefit of two clubs. And, of course, that means every Spanish kid of any talent ends up at Real or Barca. In the Bundesliga they sign up all the poor Poles as you're never gonna be rich playing in Polska. The changes coming in to football shortly will not just affect Leicester City. Real Madrid and Barcelona will HAVE to change their ways. But they'll still take every Spanish kid with talent to the detriment of the Spanish League. Real and Barca are just the Spanish Rangers and Celtic.”
by TheGeofflane
Sunday, March 03 2013, 11:34AM
“Didn't know lolo (plies?) was an accountant as well as a zenophobe. I am no accountant either, but glad we now own our own ground again (Thanks, King Power, it no longer belongs to an American Pension Fund which might not have LCFC's interests at heart). Our Thais keep putting money in and building our club and plies (lolo?) keeps frothing at the mouth. We even have an English manager now lolo. Want Sousa back? Win, lose or draw, WHY not just enjoy the football? Even tho' you don't appear to know much about that either.”