£5 million FFP boost given to Leicester City as the Seagrave deal is finalized
The accounts reveal a sponsorship agreement for both the Training Ground and the club’s stadium, giving Leicester City a £15 million boost in their fight against the Profitability and Sustainability Rules (PSRs).
This week, Companies House made available the complete set of accounts that the club had previously made public earlier this month. At that point, it was disclosed that the club had lost £89.7 million before taxes.
It happened after the club was accused of violating the Premier League’s PSRs for the month of June in 2023 by the league. If proven guilty, City might lose some of their starting season’s worth of points if they are promoted back to the Premier League.
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According to reports, City is expected to violate financial regulations for the current campaign. They are already subject to a registration embargo thanks to the EFL’s proactive measures.
Nonetheless, since the accounting period doesn’t end until the end of June, the club still has time to raise some money. They can accomplish this, for example, by selling players or by using other strategies like sponsorship to raise money.
“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,” according to the 2022–2023 accounts. Curiously, it continues, “and the naming rights for the Seagrave training ground for the seasons 2023–2024, 2023–2035, and 2025–2026.” As of June 30, 2023 (2022: £nil), £15,000,000 had been invoiced during the period, and there was no outstanding balance.”
The King Power Stadium sponsorship deal is only valid for the 2024–2025 campaign. The club might, therefore, theoretically look for a new stadium sponsor in order to secure a more lucrative contract for the following season.
It would be akin to the FBS shirt sponsorship agreement. Although King Power was brought back as the team’s shirt sponsor after relegation to the Championship, the club announced a record-breaking new principal club partnership in 2021.
