Leicester City takeover: What we know about £200m value and administration rumours

Leicester City’s owners must accept the reality their 2016 fairytale counts for nothing when looking to sell the club. King Power are actively seeking to end their 16-year reign of the Foxes, with investment bank Citigroup overseeing the sale. A valuation of more than £200m had been reported in August, taking into account Leicester’s major assets, including their stadium and world-class training complex. However, King Power chief executive and Leicester chair Aiyawatt “Top” Srivaddhanaprabha would be fortunate to receive anything close to that figure, with the club’s Premier League triumph a decade ago carrying far less weight than the fact they are currently a League One outfit. “The valuation is on the high side,” Loughborough University sports finance expert Dan Plumley tells The i Paper. Aiyawatt “Top” Srivaddhanaprabha is looking to sell Leicester City (Photo: Getty) “It’s probably more of a top-end Championship club valuation rather than their current position in League One. Revenue will have dropped compared to the Premier League days. “However, they will be factoring in other assets that they own. The training complex is huge so there is some value in that.” What is a fair price for Leicester City? Plumley points towards Sheffield United’s £105m sale as a helpful comparison, although the Blades were top of the Championship at the time of their takeover in December 2024. Leicester meanwhile are 13th in League One after six games, having suffered the ignominy of double relegation amid financial breaches and supporter protests. The Foxes naturally hope to bounce back, but Plumley estimates potential buyers may chase a sale closer to £100m given the club’s current standing. “It’s really tricky,” Plumey says. “I would assume the revenue would have dropped to around £80-100m. If you work off that and a small multiplier plus the training ground and assets, I think you could get to a rough estimate of around £130-150m. “But if I’m the buyer, I’m probably trying to push that down to around £100m. All are estimates, though, and a lot of it based on ‘feel’ and comparative sales like Sheffield United.” Debts and administration threats On Tuesday, Leicester confirmed they had converted £8.5m of owner debts into new shares. King Power also wrote off £194m three years ago. “The owners have always supported the club financially and have written off debt in the past to help them financially,” Plumley adds. Leicester sold Jeremy Monga to Manchester City for £10m to help balance the books (Photo: Getty) Meanwhile, rumours of an administration threat seem far-fetched for now. The club were deducted six points last season for financial breaches, but a careful summer transfer window alluded to the Foxes addressing losses in previous years. They sold Jeremy Monga to Manchester City for £10m in July, and spent just £4.7m on players compared to the £43m they made in sales. “On administration, that comes down to cash to keep going day to day. We can’t see that from the outside looking in so it’s tough to say how bad it is,” Plumley says. “Expect them to continue pushing to sell the club though, that’s clear. And probably some more player departures in the winter window if the club is still in limbo sale wise.” Who wants to buy Leicester? Currently only Scottish-Indian businessman Neil Lal has publicly expressed his interest, telling Talksport his Bharat Consortium Group consortium – featuring three other investors – have made an offer. “We are all wealthy businessmen,” Lal said last week. “We have contacted the board directly, which saves time. It is now a waiting game.” On the reported £200m valuation, Lal added: “Leicester is valued as a successful Championship club, and yet it’s in League One. So, for me, the valuation is over the top. “If, God forbid, Leicester ever drops down to League Two, financially, it’s Armageddon. It really is… My fear is if this [form] continues for the long term, over the next two-four months, and Leicester’s not playing well in the league, then unfortunately, we are going to have to review the situation and possibly walk. And I don’t want to do that. The foundations are there, but the problem is the financial stability is not.” Read more Daniel Storey: Leicester City ignored their fans. Now they are paying the price Michael Hincks: Leicester City and the great £34m reset The i Paper understands no formal engagements have taken place with the club despite the reported expressions of interest. Reports of Saudi boxing mogul Turki Al-Sheikh being sounded out, just weeks after he pulled out of a takeover for Derby County, also remain rumour for now. The i Paper contacted both Leicester City and Citigroup for comment.