Saturday, 3 March 2012

Leicester City Football Club report record loss

Leicester City Football Club have reported a record loss of £15.2 million following a year in which their Thai owners have invested heavily in the playing squad.

The Foxes' Thai owners - Vichai and Aiyawatt Raksriaksorn, owners of the King Power brand - loaned £28 million to the club in the year up to 31st May, 2011. Most of that money went on player wages, with the likes of loanee Yakubu and January signing Sol Bamba amongst the highest earners.

The year's losses are more than double that of 2009/10, £7.5 million, and more than a million pounds more than the previous record of £14.2 million set in 2007/08 following relegation from the Championship.

"The club's strategy of investing in a strong squad to fight for a promotion place has led to increases in staff costs," said chief executive Susan Whelan, "We continue to invest in both the playing squad and the capital assets of the club, but we are also working hard to increase our commercial revenue."

The accounts show that, whilst turnover and gate receipts were both up on the previous year, the club's debt has soared to £46 million pounds thanks to the loans given by the King Power owners. Meanwhile, it has been revealed that the Raksriaksorns have loaned a further £25.6 million to the Foxes this season to pay for players, a new pitch, big screens inside the King Power Stadium as well as a revamp of the Belvoir Drive training ground.

Through their company Asia Football Investments, Vichai and Aiyawatt own 80% of the football club, with Cronus Sports Management, owned by Indonesian football official Iman Arif, holding the remaining 20% of the shares.
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