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Leicester City’s Chairman, Aiyawatt Srivaddhanaprabha, has cleared £194m of debt from the club to leave the club officially debt-free. They had previously owed the money to parent company King Power International which Srivaddahanaprabha also owns.
The club’s finances have been a cause for concern over the past couple of years with Brendan Rodgers frequently speaking out about his frustration at not being able to add to his playing squad. The result has seen the Foxes stagnate to the point where are now even on the cusp of a relegation battle as things stand.
Rodgers, and everyone else associated with Leicester City, will be delighted by the news that the club’s debt is no more and will now look to the future more positively than before.
In a statement, the football club have said:
“These loans have been provided by KPI to the club over the the last four years to fund the construction of the club’s world-class new training ground at Seagrave and to continue to support the club’s investments into its squad and women’s football during the Covid-19 pandemic.
Their conversion into equity serves to strengthen the club’s balance sheet, reduce its interest costs, and provide further evidence of KPI’S commitment to supporting the club’s long-term sustainability.”
Long-term stability for Leicester
Leicester City have been owned by the Srivaddhanaprabha family since 2010 and have enjoyed phenomenal success under their stewardship. After being promoted in 2014, the club completed one of the greatest football achievements of all time when they won the Premier League just two years later. An FA Cup win in 2021 followed and the family are keen to build on this success.
The family has shown similar levels of commitment in the past when they wiped away £103m of debt in 2013 in similar circumstances. Back then, Aiyawatt’s father Vichai was the Chairman of the club but he tragically passed away in 2018 in a horrific helicopter crash.
Aiyawatt clearly remains committed to the football club and said on Wednesday that he believes in all of his heart in Leicester City and what the club can achieve moving forward. He added:
“Maintaining long-term stability is vital for sustainable growth and a fundamental principle that has always guided our investments in the club’s future. We want to make sure we continue on that path from the strongest, most secure financial footing.
I believe with all my heart in Leicester City and what the club can achieve for our fans, our people, and our communities. The faith they continue to place in us to run their club responsibly with ambition and integrity guides our decision-making and remains vital to us building on one of the most successful eras in the club’s history.”
The future on the pitch
The club are currently lingering in 14th place in the table and are yet to win a league match since football restarted after the World Cup. There has been speculation around manager, Brendan Rodgers’ future all season, but Srivaddhanaprabha has stayed loyal to his man.
There is an acceptance though that Leicester need to start winning football matches sooner rather than later or the threat of relegation to the Championship could become a very real possibility. One positive for the club is that they have an FA Cup fifth-round match against Blackburn to look forward to next month.