Leicester announce pre-tax loss of £67.3million
Leicester have announced a pre-tax loss of £67.3million for the year ending May 2020 as the Foxes begin to count the cost of the pandemic.
The losses are up from £20.2million from the previous year and are partly explained by significant investment in a new training ground, land around the King Power Stadium, and player signings, but the club said that lockdown led to considerable costs in the final three months of the accounting period.
“Principal costs such as the majority of the club’s contribution to the Premier League’s broadcaster rebate, were borne in the accounts before the year-end, while the extension of the season’s conclusion has meant almost a quarter of Premier League revenues, prize money and sponsorship revenue will be not recognised as income until the 2020/21 financial year,” a statement said.
The impact of that was a drop in turnover to £150m from £178.4m for the previous 12 months.
The club did not furlough staff during lockdown and continued to pay casual matchday and non-matchday staff until the end of the financial year despite the suspension of play, with many deployed within the community at a time when Leicester was one of the worst-hit areas in the country.
Chief executive Susan Whelan said: “While the early impact of Covid-19 on commercial revenues is clear, 2019/20 was still a season of considerable progress.
“On the pitch, we secured a return to European football with our second-highest ever Premier League finish and, off it, we were able to support our people through times of hardship, further strengthening the bond between the club and its communities.”
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