Kieran Maguire: Leicester City 'in a mess' as '£200m' news revealed
The finances at Leicester City are ‘in a mess’ following their relegation from the Premier League.
That is the view of finance expert Kieran Maguire, who spoke to Football Insider about the economic challenges facing the Foxes in the Championship.
Just seven years after winning the Premier League title, Leicester have been demoted to the second tier after finishing 18th in the table.
Dean Smith’s side recorded a 2-1 win over West Ham on the final day of the season, but Everton’s win over Bournemouth rendered the win meaningless.
As reported by Sky Sports, Leicester were relegated despite having the seventh-highest wage bill in the Premier League at £182million.
Maguire insists the wage bill can be reduced through player sales, but raised concerns about club loans and parachute payments.
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“There is no doubt that Leicester City’s finances are in a mess,” Maguire told Football Insider’s Sean Fisher.
“They had a very high wage-to-income coefficient in 2022 and that was despite earning over £200million that particular season due to participation in Europe.
“With the likely departure of James Maddison and Harvey Barnes and eight players out of contract, the wage bill can be significantly reduced.
“But it’s questionable whether the owners are willing to put money into the club, and a further concern is that the club have ring-fenced the parachute payments by taking out loans over the last 12 months.
“However, Leicester aren’t the first team this has happened to and they aren’t the last.
“What is important is that the club deals with the costs so they avoid the problems they faced at the start of the century.”
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