JibrinLeicester City have posted a significant loss of £71.1m for the 2024-25 season after their Premier League transfer expenditure failed to pay off.
The loss ranks as the third highest in City’s recent history, and it did not bring the hoped-for results, with the club relegated out of the Premier League.
However, while substantial, the loss is not expected to cause issues around Profit and Sustainability Rules (PSR), with the club having filed a compliant PSR submission for the season.
City received a six-point deduction for exceeding the loss limit for the three financial years ending in 2024.
The 2023 season saw them record a PSR loss of £63.8m but the 2024 season saw them post a PSR profit of £6.1m. It means that, once addbacks are included, City can post a PSR loss of £25.3m for these accounts, ending in 2025, and still meet the £83m loss threshold for the three years combined.
The £71.1m loss figure, an increase on the £19.4m loss posted the year before, is principally driven by squad costs, with a net transfer expenditure of £66.7m for the season following the arrivals of Abdul Fatawu, Oliver Skipp, Bilal El Khannouss, Caleb Okoli and Jordan Ayew.
The net transfer expenditure is high in part because of the timing of certain deals. The big sale that summer, of Kiernan Dewsbury-Hall to Chelsea, was completed before June 30, and so was in the previous year’s accounts.
It means profits on player sales dropped from £71.8m in 2024 to just £7.3m in these accounts, almost all stemming from Tom Cannon’s move to Sheffield United in the January window.
Since these accounts, City have made a net profit of £40.9m through sales of the likes of Mads Hermansen, James Justin, Wilfred Ndidi, and Kasey McAteer. But those deals were all conducted after June 30, 2025, and so will show up in the 25-26 accounts to be published this time next year.
A season in the Premier League did see City’s revenue climb sharply, up to £186.5m from £105.3m in the Championship the year before. This was as a result of increased broadcasting and sponsorship revenues.
City’s staff costs also rose, as would be expected, with the wage bill up £45.7m to £152.9m. This, however, is well down on the £206m spent on wages during their previous Premier League campaign.
It also equates to a wage-to-turnover ratio of 82 per cent, which is the lowest percentage at the club since 2018, with the previous two years both tracking at over 100 per cent.
But, their wage bill is still likely to rank higher in the Premier League than their final finishing position.
When City were relegated in 22-23, they had the eighth biggest wage bill in the division. While not every club has declared for 24-25 yet, it looks like City will be 15th for wage expenditure. Brentford are lower, with their accounts showing a wage bill of £131m, while Wolves, Crystal Palace, Ipswich and Southampton are also expected to be under City’s £153m figure.
The running of the club continues to be supported by investment from King Power, with a 14.3m loan from the club’s parent company shown in these accounts, which also cover the £124m debt-to-equity conversion from January 2025.
Since the end of this accounting year, City have also entered into a £28m, five-year facilities loan with King Power to cover working capital requirements.
Going forward, City will have to repay a £50m loan from Australian bank Macquarie, with £25m to be paid back this season and next season.
Jibrin
