Leicester City, an English Championship club, recently reported a pre-tax loss of £89.7 million ($112.73 million) for the 2022-23 season. This financial setback came as the team was relegated from the Premier League. The club's financial challenges have been further compounded by potential breaches in the league's spending rules, leading to a referral to an independent commission by the top flight.
During the 2021-22 season, Leicester had already posted a club-record loss of £92.5 million, with a pre-tax loss of £33.1 million the year before. The club's Chief Executive, Susan Whelan, acknowledged the significant setback faced in the latest season, emphasizing that the consequences will be felt for some time.
Whelan stated that the targets and budgets set for the 2022-23 season were deemed reasonable, given the club's previous success and growth. However, the under-performance on the pitch during that season has presented financial challenges, especially in light of the current Profitability and Sustainability rules in football.
If found guilty of breaching the Premier League's spending regulations, Leicester could potentially face a points deduction. This would make them the third club to suffer such a penalty, following Everton and Nottingham Forest. Everton, who announced a similar financial loss for the same season, are also under scrutiny for potential breaches.
Leicester City, once the Premier League champions in the 2015-16 season, currently find themselves in the third position in the Championship. They are trailing behind Ipswich Town and Leeds United by two and one points, respectively, with a game in hand.
