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Leicester City announced huge losses due the impact of Covid-19

Fri 19 March 2021 | 10:39

The Covid-19 crisis has hit the world's biggest clubs financially.

In a year when world clubs were badly hit by the pandemic,

Leicester City

announced a pre-tax loss of £67.3m in the year ending May 2020..

The loss suffered by the club is higher than last year when they lost £20.2m for investing in a new training ground and buying groundes around the King Power Stadium and signing players, and the quarantine and absence of spectators in the final three months of the financial year have severely disrupted their financial balance. Their financial turn over has also fallen from £178.4m to £150m.

"Principal costs such as the majority of the club's contribution to the Premier League's broadcaster rebate, were borne in the accounts before the year-end, while the extension of the season's conclusion has meant almost a quarter of Premier League revenues, prize money and sponsorship revenue will be not recognised as income until the 2020/21 financial year,"

a statement said.

The decline in revenues has leave many clubs facing financial crises and leicester's situation seems to be not at all good.

Chief executive Susan Whelan said:

"While the early impact of Covid-19 on commercial revenues is clear, 2019/20 was still a season of considerable progress.

"On the pitch, we secured a return to European football with our second-highest ever Premier League finish and, off it, we were able to support our people through times of hardship, further strengthening the bond between the club and its communities."

source: SportMob