Leicester City shareholders may need to invest up to £50 million annually to cover the club's operating costs and avoid further decline. The warning comes from financial adviser Stefan Borson after a deadline for potential bidders passed on Friday without a deal being struck.
The club's current owners, the Srivaddhanaprabha family, could be forced to provide a subsidy of between £25m and £50m each year to keep the club afloat. This funding is required not only for player wages but also for the significant infrastructure and operating costs associated with the King Power Stadium and one of the country's best training facilities. An unidentified American group is understood to have shown interest in a takeover, but the current owners value the club at over £200m.
Financial freefall
The stark financial discussion shows a monumental downfall for a club that won the Premier League in 2016 and has since featured in Europe. Leicester City have suffered back-to-back relegations and now sit 17th in League One, just one point above the relegation zone with nine points from eight games. Their recent form of two wins, one draw and two losses reflects the instability, though they secured a vital 2-1 win over Doncaster Rovers on Saturday. That result, a 2-1 victory over Doncaster on Saturday 17 October, is part of a recent run of two wins, one draw and two losses. The team has scored 10 goals but conceded 14 this season, leaving them with a negative goal difference and 10 points behind the league leaders.
Supporters are increasingly concerned about the risk of dropping to League Two if the financial situation is not stabilised. Former Manchester City financial adviser Stefan Borson warned that serious funding from owners or new investors is urgently required. The club's precarious position is a far cry from its title-winning heights, and the required investment highlights the scale of the challenge facing manager Russell Martin and his squad.
On-field context
The financial pressure arrives as the team prepares for a key away fixture against 21st-placed Bromley on Tuesday. That match could be a turning point as Leicester seek to build on their recent win and climb the standings. The immediate focus is on securing results to move away from danger, but the long-term health of the club depends on resolving its financial woes. The next fixture is away to Bromley on 20 October.
More detail at Football Insider
