Leicester City announce £89.7m loss after Premier League charge

Leicester have announced a £89.7 loss  (Getty Images)
Leicester have announced a £89.7 loss (Getty Images)

Leicester City have confirmed losses of £89.7m for the 2022-23 season, just weeks after they were charged by the Premier League for allegedly breaching profit and sustainability rules.

Following their relegation from the Premier League last year, the Foxes have seen a drastic fall in their revenue which, combined with their high wage bill, contributed to the losses despite the high-profile sale of James Maddison to Tottenham.

Last month the Championship side, who currently sit third in the table, were charged by the Premier League and referred to an independent commission over an alleged breach of financial rules during the 2022-23 season.

In the previous season, Leicester reported losses of £92.5m and the latest confirmed figures could see them struggle to comply with financial regulations. Top-flight clubs are permitted to lose £105m over a rolling three-year period.

Announcing the latest set of accounts, the club released a statement which read: “The club is determined to ensure that any charges against it are properly and proportionately resolved, in accordance with the applicable rules, by the right bodies, and at the right time.”

The English Football League (EFL) has already placed Leicester under a transfer embargo after the club was charged in March. If found guilty, they could face a points deduction regardless of whether they achieve promotion back to the top flight. Leicester have announced plans to take legal action against the Premier League and EFL.

Leicester’s chief executive, Susan Whelan, said: “After a sustained period of growth and success for the club during the last decade, the 2022/23 season was a significant setback, the consequences of which will be felt for some time.

“We must now focus on rebuilding and seeking to return to and re-establishing ourselves in the Premier League. Having achieved finishing positions in the Premier League of fifth, fifth and eighth in the three preceding seasons, our targets and associated budgets for 2022/23 were entirely reasonable.

“However, for a club such as ours, whose sustained sporting achievements have justified the levels of investment required to compete with the most established clubs and pursue our ambition, a season of such significant under-performance on the pitch presents financial challenges, particularly from the perspective of the game’s current Profitability and Sustainability rules.”

The Midlands club are the fourth side charged by the Premier League for breaching financial regulations. Nottingham Forest were deducted four points after being found to have broken Premier League financial regulations. Everton, meanwhile, saw an initial 10-point deduction for breaching profitability and sustainability rules reduced down to six following an appeal, but also face a second case.

Manchester City were charged with 115 breaches of financial rules in February last year but are currently still awaiting their hearing.