The Thai owner of Leicester City FC says he has committed to its financial security by turning £194 million of loans into equity.
Chairman Aiyawatt Srivaddhanaprabha said he had relieved the club of the debts to its parent company, Thai duty free group King Power International.
It means money loaned to the club over the last four years has been turned into a formal stake – strengthening the balance sheet, cutting interest costs and indicating King Power International’s commitment to supporting City in the long-term.
The cash was used to fund the construction of the City’s £100 million training ground at Seagrave, near Loughborough, and to support investments in the squad and women’s football during the pandemic.
It is the second time this has happened since the family bought Leicester City in 2010 – having completed a £103 million debt-to-equity transfer in 2013.
Mr Srivaddhanaprabha said: “Maintaining long-term stability is vital for sustainable growth and a fundamental principle that has always guided our investments in the club’s future.
“We want to make sure we continue on that path from the strongest, most secure financial footing.
“I believe with all my heart in Leicester City and what the club can achieve for our fans, our people and our communities – in Leicester, Thailand and around the world.
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“The faith they continue to place in us to run their club responsibly with ambition and integrity guides our decision making and remains vital to us building on one of the most successful eras in the club’s history.”
It comes after City – which has a relegation battle looming – had a busier January transfer window than usual, bringing in Victor Kristiansen, Tete, and Harry Souttar ahead of last night’s transfer deadline.
City's difficult run on the pitch this season comes after an unprecidented period of success, including winning the Premier League in the 2015/16 season and the FA Cup in 2021. The club has also did well in the Champions and Europa Leagues.