Leicester owner wipes £194m debt clean to follow late father’s gesture

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Leicester City chairman Aiyawatt Srivaddhanaprabha has wiped the club’s £194million debt clean to its parent company King Power to ease concerns over the club’s finances. The Thai businessman has relieved the club of its outstanding debts to parent company King Power with a debt-to-equity conversion, helping reduce the costs on the club’s balance sheet.

The Premier League club had owed the amount in loans to its parent company King Power International, which is owned by the Thai family.

But the club’s chairman Srivaddhanaprabha – more commonly known as Khun Top – has decided to show a further commitment to the club by eliminating the debt in an announcement from the club on Wednesday.

A club statement read: “Over £194m in loans and related interest has been capitalised into equity issued to King Power International Co Limited (KPI), which is wholly owned by the Srivaddhanaprabha family.

“These loans have been provided by KPI to the Club over 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 King Power International’s commitment to supporting the Club’s long-term sustainability.”

Srivaddhanaprabha’s gesture is the second of its kind since the family took control of the club back in August 2010. It follows the lead of his late father, Vichai, who tragically died in a helicopter crash that claimed the lives of two other passengers and the pilots outside of the King Power Stadium in 2018.

Vichai completed a £103M debt-to-equity transfer in 2013 and, in both cases, it has been ensured that all existing shareholder investment in the club will not be carried forward as debt.

This does not make Leicester debt-free as such, as the club are reported to have various loans with other banks. However, the value of those pale in comparison to the £194m owed to King Power, and now it has been wiped, the club’s financial concerns have been eased.

Announcing the move, Khun Top backed the club to continue their growth: “I believe with all my heart in Leicester City and what the Club can achieve for our fans, our people and our communities – in Leicester, Thailand and around the world.

“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.”

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