Another £14.6m pumped into Leicester City so far this season by King Power International
The owners of Leicester City have pumped a further £14.6 million into the club since the start of this season, it is revealed today.
The cash injection comes on top of the £61.6 million which had already been injected by King Power International since they took control in 2010.
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OWNERS: Vichai Srivaddhanaprabha and his son, Aiyawatt
The club said it had been assured further funding would be made available from the Thai business as City enter a crucial period in their push for promotion to the Premier League.
On Saturday, the club revealed it had made a loss of £29.7 million in the year to May 31, 2012 – believed to be the highest deficit ever racked up by a Championship club.
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A statement from the directors issued alongside the club's latest accounts said: "King Power International has confirmed that finance will be available to fund future trading and support the football strategy to achieve promotion back to the Premier League.
"Since June 1, 2012, £14.6 million of new funding has been provided and the directors are confident further funding will be provided as required."
The club said the money was used on players and improving the facilities at King Power Stadium.
On Friday, King Power revealed they had bought the stadium from American pension fund manager Teachers Insurance in a £17 million deal.
A statement in the accounts said the club had continued to incur trading losses in the five months to November 30, 2012.
Susan Whelan, City's chief executive, said on Saturday she was unable to provide further details on the club's financial performance so far this season.
The club's accounts do not say whether the £14.6 million of new funding is a loan.
Other cash provided by King Power, a duty-free retailer, has come in the form of loans.
The accounts show the majority of the £60 million plus which had been loaned to the club by King Power up until May 31, 2012, is subject to interest charges of 8 per cent.
City's £29.7 million loss last season has been blamed on a soaring wage bill built up during Sven-Goran Eriksson's reign as manager.
Salaries rocketed to £27.7 million from £16.6 million the previous season.
Eriksson was sacked by the club in October 2011, after serving just over a year as manager.
In a story in the Mercury on Saturday, the club chairman, Vichai Srivaddhanaprabha, said: "My vision is for Leicester City to take its place as a highly respected and successful Premier League club."
6 Comments
by Chappy1884
Monday, March 04 2013, 11:18AM
“Trutooth - the financial year 2012 includes..
cost of fines,
cost of overheads such as repaying the American pension fund owners most of the gate receipts in interest on the financial arrangement that Mandaric had put in place to secure the use of the stadium.
Agents fees
Player Transfers by both Sven and Nigel
Advertising Budgets and the security of international TV rights for Thailand
Travel Expenses.
Electricity and Ground Expenses
TAX
PAYE contributions for players who are UK Domiciles
Care in the community orders - for operating a predominantly empty car park in a city centre location.
Compensation agreements for players and Managers who have been released,
Signing on fees for players,
Players Wages
Staff Wages
Catering and Corporate hospitality.
League Registration
The reason companies loan to their subsidiary is to mitigate the risk if they sell the club at a loss. It's completely normal. If they sell a club as insolvent then the new owner either takes on the agreement personally - or they retain a stake until the debt is repaied, whilst continuing to recover interest.. it's quite simple - it enables them to place a low value on the club, making it a more attractive proposition to a future buyer if they need an exit. Loans are always protected and underwritten by financial insurance institutions, assets aren't and can be liquidated. No need to panic.. honestly.”
by truthtooth
Monday, March 04 2013, 10:40AM
“we all know about the ££££ , but that doesnt make it right . eppp and ffp next season , we cannot carry on like this . the prem really does need to be reached this season . and if we dont pass he prem eppp then the investment in the academy was wasted for sure . if you really knew whats going on then you d be worried . if we dont pass the eppp (there is no criteria to passs , just opinion votes) then our academy will be weak, the thais know that and invested heavily in the dark . its why jeffs at manu (profile building nothing else) to help our eppp chances. the cash needs to start coming from elsewhere like the prem as it cant carry on like this due to rules . the thais wont be allowed to keep pumping in ££££ , think about it ?”
by City_C10
Monday, March 04 2013, 9:56AM
“I thought most City fans knew that the owners had ejected much money into the Foxes? The owners paid big money by appointing Sven and letting him have a big budget to spend bringing players he believed could gain Leicester promotion. Sadly, some players cost Leicester for example Matt Mills a £5 million signing, Beckford, and more (plus their very high wage bill) did not help to aid Leicester's quest. However, they are doing okay, but they really need to gain promotion this season or I worry for the clubs financial state otherwise!”
by truthtooth
Monday, March 04 2013, 9:52AM
“for a club that has had so much money pumped into it , sitting in a playoff position at 5th in really poor form, just doesnt seem right . a club that has invested so heavily really needs promotion and quick.theyve invested enough for 3 promotions !!!! lets hope a playoff final win is the least we get ,as if not , surely things would have to change ? if i'd personally invested that much with the results weve had , i can say i'd want just a little more weve had given since the input ! i know theyve spent not just on players but come on £70million at least, bad return so far ????”
by democrat
Monday, March 04 2013, 9:40AM
“lolo
Loans is the typical way that Directors support a business
Panic not”
by lolojones
Monday, March 04 2013, 8:40AM
“These owners need to leave Leicester City or be expelled by the football league for destorying the club. The article states very important points:
"The club's accounts do not say whether the £14.6 million of new funding is a loan.
Other cash provided by King Power, a duty-free retailer, has come in the form of loans.
The accounts show the majority of the £60 million plus which had been loaned to the club by King Power up until May 31, 2012, is subject to interest charges of 8 per cent."
You get nothing for free in this life, oblivion beckons.”