Leicester have EPL relief money and very good transfer budget

'Filbert Way' street sign in 2014 near Leicester City (Photo by Laurence Griffiths/Getty Images)
'Filbert Way' street sign in 2014 near Leicester City (Photo by Laurence Griffiths/Getty Images) /

Leicester City are facing an exodus of talent in the coming weeks. Luckily, the Foxes are reported to have both a big budget and more money coming in.

The King Power club will need funds if they are to cope with the coming reckoning. What we do know is that Leicester will receive a sizeable amount from the Premier League for their participation in the 22/23 campaign, as well as a massive freeing up of finances earmarked for high earners and FFP regulations. The Foxes will hopefully be unleashed.

So, there are two sides to this story and one outcome, we shall run through each in turn. Additionally, I shall also briefly denote what I believe shall occur as a result of these massive changes and the funds becoming available.

Leicester City’s EPL relief

As per the usual, every side which participated in the Premier League is due to certain amount of renumeration depending upon TV broadcasting, end position, facilities expenses, etc. as well as parachute funds provided to those clubs who unfortunately fall out the league. Every side gets this, and the Foxes will be hopeful for a big fund.

According to reports, a value equating to around £111m is expected, and then a further £45-50m throughout the course of the EFL Championship season. The additional is mostly earmarked for loan repayments, so will not be overly useful in allowing a more liberal wage bill: strong wage restrictions will be in place to protect the side from FFP sanctions.

That is enough money to sign quite a few players and pay for most of the wages of a new head coach. Our next signings will not be over £20m, so it pays for several players to join the side. Some of those parachute payments should be available, so we should look forward to an alright wage budget.

‘Biggest transfer budget’

Leicester City want to dominate the Championship. The best pitch, the best training ground, a high quality head coach, and apparently the biggest transfer budget in the division. A rebuild to outmatch all previous rebuilds.

Think of it this way: seven players likely confirmed leaving on expiring contracts, and several more definitely looking for moves away, and two high value and high wage players the Foxes would likely like to move on. That is a lot of money to free up/gain.

Another story claims James Maddison and Harvey Barnes are up for sale around £40m each with the hope of freeing up their wages and signing replacements with part of the funds gained. It also seems there will be a higher focus on well-scouted, youthful, and less expensive signings so any sale will be instrumental.

With so many leaving, the wage bill will collapse and Leicester will finally be able to freely operate in the transfer market without fear of running into FFP restrictions or issues regarding finding a space for players. The new signings will be senior first team almost from the get go, and if not there are plenty of U23s who can be promoted in face of a lesser league to compete in.

The outcome

A massive change of face. The King Power club will be very different in the next four weeks than it was before: new players, promoted players, and many leaving players. The financial power of a Premier League club gone astray should be enough to dominate transfer headlines with promising talent joining with the knowledge of first team playing time.

Next. 3 Things about the latest LCFC transfer target. dark

Here is a list of possible signings Foxes of Leicester contributor Joey LeMaster suggests Leicester City should sign. For myself, a focus on loan-to-buy for big names from Manchester City, Chelsea, and Arsenal’s youth setups would bring in much needed talent while we focus our transfer funds on more experienced but still long term signings. A raid of the Championship is in order.