Leicester City will be forced into a fire sale of big-earning players as their expected revenue will take a ‘huge tumble’ in League One next season.
Ten years on from their fairytale 5,000-1 Premier League title triumph and five after they won the FA Cup, the Foxes have been relegated to the third tier after a catastrophic season.
And their finances make for grim reading. Parachute payments have already been sold to a lender, broadcast revenue will fall 98 per cent compared to two years ago and other income streams – such as commercial and matchday money – will take a seismic hit.
Leicester were in the Premier League this time last season but waited two months to sack then-boss Ruud van Nistelrooy and have gone through three bosses since: Marti Cifuentes, caretaker Andy King (who publicly said he did not want the job) and Gary Rowett.
And a decade which started with a league title and subsequently hosting Champions League nights will end with the likes of Bromley coming to the King Power Stadium, a stadium which is likely to be far from full next season.
Most clubs relegated from the Premier League are protected by parachute payments. While in theory Leicester will receive a £35m solidarity sum next season, they cashed these in January by borrowing from Macquarie Bank secured against future top-flight money.
Leicester will be forced into a fire sale of big earners after relegation to League One
Commercial and matchday money will take a seismic hit after dropping into the third tier, with the expectation attendances at the King Power Stadium will also be hit
Highly rated Abdul Fatawu, left, and teenage star Jeremy Monga could be among those Leicester will be forced to cash in on this summer
Football finance expert Kieran Maguire tells Daily Mail Sport: ‘The main issue for Leicester is the revenues will take a huge tumble. They made £117m in broadcast income in season 2024-25, which will have substantially fallen this year.
‘They will be in receipts of parachute payments of around £35m next season but they have already effectively sold them to a lender who has advanced them money secured on next year’s parachutes. That just leaves them with the EFL TV money of around £2m.’
Leicester will almost certainly be forced to sell players with big names like Harry Winks, Ricardo Pereira, Patson Daka, Jannik Vestergaard and Hamza Choudhury among the EFL’s top earners.
Highly-rated Abdul Fatawu was courted by Premier League sides last summer while Stephy Mavididi also looked talented under former boss Enzo Maresca. Jeremy Monga, 16, has interest from big clubs.
Maguire adds: ‘The wage bill was very high the last time they were in the Championship. Based on my calculations they were averaging around £47,000 a week for first-team players which went up to £67,000 when they went up to the Premier League.
‘Even with relegation clauses there will still be an overhang unless they manage to get rid of the big earners before starting next year in League One.
‘Since 2018, the club has lost more than £400m despite winning the FA Cup and some pretty decent finishes in the Premier League. They did well to sell players when they were first relegated in 2022-23. Since then, all the big name-players have gone.
‘It will be more challenging this time round. I can’t see lenders wanting to go near Leicester City so therefore it comes down to the owner. Is the owner willing to put in money? Does the owner have the money to put in?
Leciester’s biggest priority will be shrinking the wage bill and securing an immediate promotion back to the second tier
Leciester owner Aiyawatt ‘Top’ Srivaddhanaprabha, right, insisted earlier this year that he would not sell the club and took responsibility when they relegation was confirmed on Tuesday
‘Those are the key questions for a club losing effectively £1m a week for the last six or seven years. That is a more critical issue in the third tier.’
Owner Aiyawatt ‘Top’ Srivaddhanaprabha, son of the late Vichai who died in a helicopter crash in 2018, insisted earlier this year that he would not sell the club.
In a statement after the relegation was confirmed on Tuesday night, Top said: ‘Responsibility sits with me.
‘We have experienced the highest highs and now the lowest lows, and the pain is shared by all of us.
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‘I am truly sorry for the disappointment we have caused. I understand the strength of feeling among our supporters, and we do not take your support for granted, especially at moments like this.’
Recruitment decisions have been a major factor behind Leicester’s downfall with big wages given to players who did not repay that investment, while letting players such as Youri Tielemans leave on free transfers has been questioned.
Rowett, who has managed just one win so far, seems unlikely to stay on as boss while a lot of the players, such as Harry Winks who was videoed arguing with fans on Saturday, also seem destined for exits.
The biggest priority must be shrinking the wage bill and securing an immediate promotion back to the second tier seems financially imperative to the long-term future of this institution of English football.
