Leicester City Chief Issues Sobering Update as club was hit by heartbreaking Setbacks

Leicester City’s new chief executive Kevin Davies has admitted there is “work to do” to strike the right balance between financial responsibility and on-pitch success after the club posted a £71.1m loss for the 2024–25 season.

The loss, described as “substantial” by Davies, is the third heaviest under the King Power ownership and comes in a campaign where the club struggled on the pitch, ultimately suffering relegation from the Premier League.

Davies, who recently stepped up from his role as finance director, explained that part of the loss is due to the timing of player sales across accounting periods. He also pointed to the absence of “non-recurring other operating income,” referring to compensation received from Chelsea for former manager Enzo Maresca and his staff, which had boosted the previous year’s accounts.

Despite the headline loss, Davies noted that the club’s underlying financial position has improved. Revenues rose significantly during the year, outpacing the increase in costs associated with competing in the Premier League. Staff costs as a percentage of turnover also fell to their lowest level since the 2017–18 season.

However, he acknowledged that more progress is needed to meet supporters’ expectations for financial stability.

In a statement, Davies said: “These accounts reflect the reality of returning to the Premier League. Our revenues increased significantly during the year, but so too did the costs of trying to compete at that level, and the loss we are reporting is a substantial one.

“While it is natural to look first at that headline number, it is important that it is seen in its full context. The underlying operating position improved year on year as the increase in revenue was substantially larger than the increase in costs.

“Staff costs as a percentage of turnover reduced to their lowest level since 2017–18. However, the timing of profits generated on player trading and the absence of non-recurring other operating income heavily affects the final reported loss in comparison to the prior year.

“We know supporters want to see Leicester City run responsibly, with the right balance between giving us the best chance of success on the pitch and building greater financial stability for the future.

“These financial statements show there is still more work to do, and we are clear about that. Improving our financial position over time remains a priority and will continue to shape the decisions we take as a club.”