Yahoo News Leicester City handed £15m FFP boost as Seagrave deal confirmed
Leicester City have been handed a £15 million boost in their struggles against Profitability and Sustainability Rules (PSRs) with the accounts showing a sponsorship deal for both the club’s stadium and the Seagrave Training Ground.
The full club’s accounts were released on Companies House this week, after the club released them earlier this month. That was when it was revealed that the club had suffered a pre-tax loss of £89.7 million.
It came after the club were charged by the Premier League with an alleged breach of the league’s PSRs for the period ending in June 2023. If found guilty, then City could face a possible points deduction at the start of the season if they are promoted back to the Premier League at the end of the season.
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It has also been reported that City are on course to be in breach of financial rules for the current season. The EFL have already taken action in putting them under a registration embargo.
But the club still do have time to raise some funds with the accounting period not ending until the end of June. One way they can do this is by selling players, or through other money-raising tactics such as sponsorship.
The 2022/23 accounts say that “The Group and Company also entered into a sponsorship agreement with King Power Duty Free in relation to the stadium naming rights for the 2024.25 season.” Interestingly, it then adds: “and the Seagrave training ground naming rights for the 2023/24, 2023/35 and 2025/26 seasons. £15,000,000 was invoiced in the period with nothing outstanding at the 30 June 2023 (2022: £nil)."
The sponsorship agreement for the King Power Stadium only runs for the 2024/25 season. So, in theory, the club could potentially search for a new sponsor for the stadium which could potentially bring a more lucrative deal for the season after next.
It would be a similar move to the shirt sponsorship deal with FBS. The club announced a record new principal club partnership in 2021, although relegation to the Championship saw King Power reinstated as the club’s shirt sponsor.
