BusinessBusiness RecoveryAdministration threat hangs over Leicester City

Administration threat hangs over Leicester City

Cash-strapped first division football club Leicester City is to meet with the Professional Footballers Association tomorrow to negotiate a possible reduction in players' wages as it bids to stave off administration.

Link: Watford FC cuts salaries to avoid collapse

A spokesman for the club said a number of ‘cost saving proposals’ including a cut in players’ salaries together with reaching an agreement with the club’s main creditors were necessary before the issue of new equity could be approved.

The club’s shares were suspending on the Alternative Investment Market last week; at the same time a 20% reduction in wages was mooted.

Today, Leicester City said in a statement: ‘The company is at an advanced stage of negotiations with its main creditors and is hopeful of reaching agreement in the near future.

‘The Company is also in negotiations with the Professional Footballers Association and the players of the club. The Company is due to meet with the PFA tomorrow to further discuss cost saving proposals which the Company’s Directors believe are essential in order to avoid the Company and the Club being placed in administration.’

Last month fellow first division club Watford was forced to implement a 12% reduction in players’ salaries to avoid going into administration.

Related Articles

Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

6d Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

6d Emma Smith, Managing Editor
KPMG appoints new global head of insolvency

Business Recovery KPMG appoints new global head of insolvency

3w Emma Smith, Managing Editor
EY hired by Carillion to review finances

Accounting Firms EY hired by Carillion to review finances

5m Alia Shoaib, Reporter
Using insolvency as a debt recovery tool

Business Recovery Using insolvency as a debt recovery tool

6m Emma Smith, Managing Editor
UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

Business Recovery UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

8m Alia Shoaib, Reporter
Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

Business Recovery Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

9m Emma Smith, Managing Editor
FRP Advisory expands operation with new office, partner appointments

Accounting Firms FRP Advisory expands operation with new office, partner appointments

10m Emma Smith, Managing Editor