2012/13 Financial Results

While the Club’s objective of winning promotion from the Football League Championship was not fulfilled during this accounting period, it succeeded in continuing to build solid foundations in its pursuit of sustainable success and Premier League status, reflected in its current league position during 2013/14.

The long-term vision of the Srivaddhanaprabha family, underpinned by the support provided by King Power International, continues to safeguard the Club’s future. The accounts reflect the purchase of our home, King Power Stadium, through the family’s K Power Holdings company, in February 2013, while the proposed transfer of the Club’s non-stadium debt into equity – its biggest step towards self-sufficiency in recent memory – was completed after the year-end. The swap relieves Leicester City of all liability on loans provided by KPI and will have a significant impact on financial performance in 2013/14 and beyond.

The Club recorded losses in the year to 31 May, 2013 of £34 million (2012: £29.7m).

While the headline figure of £34m is greater than that of 2011/12, the Club reduced its underlying losses as the playing budget has been managed. Losses during 2012/13 were also affected by the exceptional impact of implementing the Financial Fair Play regulations on player values and amortisation – a market change unlikely to be repeated in years to come. The accounts illustrate that the vast majority of operating costs were reduced compared with the previous year.

The unprecedented selection of eight home league matches for live television broadcast led to a fall in ticket revenue brought about by reduced match attendances. However, a fall in year-on-year average gates to 22,569 (23,036 in 2011/12) has been alleviated by a climb during the current season – where average attendance currently stands at 23,913.

Results for the 2011/12 season were also boosted by exceptional revenue generated from a lucrative pre-season friendly against Real Madrid at King Power Stadium in July 2011 and a profitable run to the Sixth Round of the FA Cup – neither of which were repeated during the 2012/13 campaign.

Leicester City’s Chief Executive Officer, Susan Whelan, said: “While the headline figure in these results represents a greater loss than in previous seasons, they should be set within in the context of an industry undergoing significant change. In terms of long-term sustainability, the Club is in very strong position and we are highly confident of achieving compliance with the Football League’s Financial Fair Play regulations during the current season, regardless of divisional status.

“As an integral part of the King Power International Group of Companies, the Club remains securely positioned, as the Srivaddhanaprabha family seek to deliver their vision of sustainable, long-term success through continued, strategic investment.

“The transfer of the Club’s debt into equity and the purchase of the stadium are momentous gestures of their commitment. These factors, allied with increased sponsorship and revenue generated in the current season, and further cost reductions, will have a significant impact on our financial performance during 2013/14 and beyond, putting the Club in its strongest financial position for several decades.”

Aiyawatt Srivaddhanaprabha, Leicester City Vice Chairman, said: “We remain wholly committed to establishing Leicester City as a sustainable Premier League football club and to delivering long-term success and prosperity to the Club’s supporters and to the city of Leicester.

“The 2012/13 season brought a vast range of experiences that have made the Club stronger and, thanks to the work we have been able to do during that period, and measures we have taken since, we have been able to continue to pursue our vision for the Club from a position of absolute stability.

“I would like to extend my thanks to all of the Club’s fans and partners for their support throughout the 2012/13 season. I trust that they recognise the ambition we have for their Football Club and the lengths we have and will continue to go to in order to realise that ambition.”