Leicester City Reports £19.4m Loss for 2023-24 Season

Leicester City has reported a financial loss of £19.4 million in their accounts for the 2023-2024 season, during which they competed in the Championship. This figure represents a substantial reduction compared to previous deficits of £92.5 million in 2021-22 and £89.7 million in 2022-23. The latter losses led to the club being charged by the Premier League for an alleged breach of Profit and Sustainability Rules (PSR).

Leicester successfully contested this charge, asserting that, as they were under the jurisdiction of the English Football League (EFL) at the time, the Premier League lacked the authority to enforce penalties. However, there remains uncertainty regarding whether the EFL will issue a PSR charge for the three-year period up to the 2022-23 season. A Premier League statement in January indicated that the matter of jurisdiction is currently subject to confidential arbitration proceedings.

A resolution on this issue is not expected before Leicester, currently 12 points away from securing Premier League status, determines their league placement for the next season. Under existing Premier League financial regulations, clubs are permitted a maximum loss of £105 million over a three-year period, with this threshold reduced by £22 million for each year spent in the EFL. Leicester secured the Championship title in the 2023-24 season.

EFL regulations stipulate that clubs may not exceed £39 million in losses over a three-year cycle. Should Leicester face relegation again, their permissible financial loss for the next accounting period, covering the 2024-25 season, would be capped at £83 million—­accounting for two seasons in the Premier League and one in the Championship.

The club's 2023-24 financial statements incorporate revenue generated from the transfers of Harvey Barnes to Newcastle for £38 million and Timothy Castagne to Fulham for £15 million. Additionally, the £10 million compensation received from former manager Enzo Maresca’s move to Chelsea has mitigated some financial strain. Looking ahead, the sale of Kiernan Dewsbury-Hall to Chelsea for £30 million in the summer of 2024 is also factored into the club’s financial outlook.