Leicester City could see revenues drop by £100-£150 million next year, even taking into account the parachute payments that come with relegation from the Premier League to the Championship. Everton’s victory against Bournemouth on Sunday secured City’s drop after what, for all Leicester supporters, was a forgettable season.
The fall from grace comes seven years after winning the league in unprecedented style, and just two years after winning the FA Cup. It makes City the first team in Premier League history to go down having finished in the top half of the table for the five previous seasons.
City’s accounts show how much higher their revenues were than the teams they will be playing in the Championship this autumn. Leicester had revenues of £214.6 million in the 2021-22 season – the most up-to-date public figures. However the club also made losses of £92.5 million, up from £33.1 million losses the year before.
The club’s combined debts for the year to the summer of 2022 were more than £300 million – player wages were among some of the highest in England at £182 million – though the debt came down earlier this year when the Thai owner and club chairman Aiyawatt ‘Top’ Srivaddhanaprabha turned £194 million of loans owed to him into equity in the club.
As a comparison, Preston North End, who finished 12 th in the Championship, said preliminary figures for 22/23 showed an operating revenue of £14.8 million, with losses of £11.5 million.
History also suggests City will struggle to jump straight back up at the end of next season, with just one in five relegated teams getting promoted the year after going down.
But, at least if the bookies are anything to go by, there is one small bit of optimism. Sky Bet has Leicester City as 13/8 favourites to be promoted from the Championship next season, with Leeds at 7/4 and Middlesbrough and Southampton both at 3/1.
In a statement on the club website the club chairman said Leicester would come back from the loss and the pain of relegation.
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He said: “This past season has been the most difficult for all of us to endure, ultimately resulting in relegation from the Premier League.
“We gave everything to turn it around yesterday and the atmosphere in the stadium after we’d gone in front and looked on course for survival was absolutely incredible.
“But relegation is a consequence of 38 games and over that period, we haven’t been good enough.
“Over the coming days and weeks, we need to reflect on the processes and decisions that have brought us to this point.
“What we learn from this experience must convert into action that makes us stronger and prevents this happening to us again in the future.”
He added: “Next season is going to be tough, but it will be a year for collaboration and unity. We will come together and fight to return to the Premier League.”
Fixtures for the 2023/24 Championship campaign will be announced at 9am on Thursday, June 22.