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.
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.
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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."