Leicester City - FFP potential breach - The Numbers
Posted: Thu Mar 14, 2024 12:24 pm
Leicester City's financial situation has led to claims that the Foxes are set to be charged by the Premier League for breaching profit and sustainability rules (PSR), which could lead to a possible points deduction.
The Foxes are at risk of two breaches, with it previously reported that the club could face a charge over one of those breaches this week. For accounts covering three seasons in the Premier League, losses of £105m are allowable. If that figure is exceeded, there is the possibility of sanctions, including point deductions.
City’s accounts for the 2022-23 season are due to be published at the end of the month. For the two previous seasons combined, they made losses of £125.5m, meaning a profit of more than £20m would be required to avoid being over the threshold.
Having looked at the numbers they could just avoid any punishment but their huge wage bill may well tip the balance. In 2022/23 they made a transfer trading surplus of £61.95m mostly generated from the sales of James Maddison, Harvey Barnes, Tim Castagne and George Hirst that bagged the £106m.
This near £62m surplus plus other income would need to generate £20m of profit to avoid them breaching the £105m losses of 3 years rule. However their huge wage bill in 2022/23 rumoured to be in the region of £85m may well be their downfall.
All I can say is, If they can’t make a profit of £20m in a year when they made a transfer profit of £62m and had a full stadium every week, there’s not much hope for the rest of us.
The Foxes are at risk of two breaches, with it previously reported that the club could face a charge over one of those breaches this week. For accounts covering three seasons in the Premier League, losses of £105m are allowable. If that figure is exceeded, there is the possibility of sanctions, including point deductions.
City’s accounts for the 2022-23 season are due to be published at the end of the month. For the two previous seasons combined, they made losses of £125.5m, meaning a profit of more than £20m would be required to avoid being over the threshold.
Having looked at the numbers they could just avoid any punishment but their huge wage bill may well tip the balance. In 2022/23 they made a transfer trading surplus of £61.95m mostly generated from the sales of James Maddison, Harvey Barnes, Tim Castagne and George Hirst that bagged the £106m.
This near £62m surplus plus other income would need to generate £20m of profit to avoid them breaching the £105m losses of 3 years rule. However their huge wage bill in 2022/23 rumoured to be in the region of £85m may well be their downfall.
All I can say is, If they can’t make a profit of £20m in a year when they made a transfer profit of £62m and had a full stadium every week, there’s not much hope for the rest of us.