(Credit: Imago)

James Murray

Mon 27 April 2026 19:34, UK

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Leicester City will be forced to sell their former Premier League stars after being relegated from the Championship.

That is according to former Manchester City financial adviser Stefan Borson, who exclusively told Football Insider the Foxes are facing “massive” costs due to being set up to play in a higher division than League One. 

Leicester’s relegation to the third tier was confirmed on 21 April after they failed to beat Hull City at the King Power Stadium.

Gary Rowett’s side will finish the campaign in 23rd place, with Oxford United and Sheffield Wednesday joining them in League One next season.

The Foxes last played in the third tier in 2008-09 before going on to make history years later, winning the Premier League title in 2015-16 and the FA Cup in 2020-21. 

Why Leicester are facing ‘big issue’ after Championship relegation

Leicester have faced significant financial issues in recent years after struggling to comply with the spending rules. 

The East Midlands side were deducted six points in February for breaching the EFL’s financial rules in their promotion-winning campaign back to the Premier League in 2023-24. 

Speaking exclusively to Football Insider, Borson discussed the impact of relegation on Leicester.

“The parachute payment next season is very important from a profit and loss perspective, not so much from a cash perspective because they’ve already had the cash,” said Borson.

“They effectively forward-sold the debtor. The big issue that they’ve got is really how they reset the whole club. When you’re in League One, you need to effectively get rid of almost all of the players that you’ve had that have come in from the Premier League. 

“You need to reset the situation. You need to rebuild with players who are more appropriate to League One. You need to reset your wage bill. You might be okay next season, but if it doesn’t go well, the season after you’re going to be in real trouble, so you need to reset the wage bill.” 

Why Leicester face significantly bigger costs than League One clubs

Borson revealed the costs of running their state-of-the-art training ground will be a concern for Leicester next season.

“One of the big issues that Leicester are going to have is that the whole club is set up for a much bigger league and a much bigger cost base,” said Borson.

“If you look, for example, at the training ground, it’s amazing. But the other flip side of the training ground is it’s going to have a huge cost. It’s massive. 

“It’s going to have loads of groundsmen. It’s going to have loads of staff. It’s going to have loads of weekly costs of maintaining all of this equipment.

“All of these little things that just don’t apply to 90 per cent of the teams in League One are going to apply to Leicester, so the whole thing has to be reset.”