The Foxes Trust Board met with the club last week in advance of Leicester City Football Club’s 2022-23 accounts being published and has also had chance to look at the club’s statement issued yesterday (2 April). The meeting continued the long-established process whereby the Trust is briefed, under confidential embargo, shortly before the accounts are released. The Trust is pleased to see King Power’s continued commitment to the club and continued investment. The assurance of the financial viability of our club, for the time being, is welcomed but remains concerning. The Trust also welcomes the continued commitment of the club to its Women’s team.
The Trust has raised in recent years its concerns about club finances, Profit & Sustainability Rules (PSR) and future sustainability. The Trust is frustrated that previous questions and concerns remain unanswered by the club and that they were dismissed at the time they were raised. The Trust will continue to pursue answers under our remit of monitoring the governance of our club as we seek to establish what lessons have been learned.
Whilst the losses announced for 2022-23 are £89.7m, there are many deductions to make to that amount before the final judgement can be made for the PSR ruling. It is worth stating that the value and make-up of the club’s view of these deductions, and hence the likely PSR shortfall, has never been revealed to the Trust.
The fans of Leicester City FC are not just customers or consumers. Currently, many feel let down and not listened to. There is also frustration that no-one at the club appears to be acknowledging any mistakes, on or off the pitch, no one is being held accountable and there is no communication from the club about any reflections on the events of the past 18-months or so. Fans understand that the current legal situation may currently constrain such communications, but that does not explain the near silence over many months.
Equally, there is anger and frustration with the Premier League, the English Football League and the PSR. How can it be that there any grounds for apparent confusion about which rules apply to a club which is relegated, or about whether penalties such as a transfer embargo can be applied for events which have yet to be concluded?
Many other clubs have also recently released their accounts for 2022-23. The annual losses made by Aston Villa (£120m), Everton (£89m), Newcastle (£73m) and Wolves (£67m) suggest that for clubs outside the big six, balancing the books whilst aspiring for Premier League success is difficult or impossible. Whether this will, in due course, add to the number of club’s facing points deductions remains to be seen. On the other hand, Brighton’s recently released profit of £122m does paint a different picture.
Overarching all of this is the question: what does it mean for a sport if its financial, rather than sporting, rules increasingly influence sporting outcomes and seem to favour the biggest clubs and protect the status quo? This issue needs to be addressed and the hope is that the Football Governance Bill is made law and will help.
As supporters, we need to make our voices heard now more than ever to ensure we have a sustainable football club for the next 140 years. We can also play our part in influencing the national game through the Football Supporter’s Association (FSA) too.
Join us in making our voices heard and join the Foxes Trust today for only £10.00.