With more acquisitions still needed in the relegation battle, the club has taken out a loan with Australian bank Macquarie ahead of the last few weeks of the January transfer window.
In a move that might indicate a drive for January moves, Leicester City took out a bank loan.
As has become commonplace for the club in recent years, City has secured the loan with Australian bank Macquarie against future Premier League revenues. Although the loans are frequently taken out to help with cash flow and to finance the club’s daily operations, the most recent loan’s date would indicate that January transactions are the emphasis.
Although the filing on Companies House is backdated to January 9, it was released on Monday night. The amount of the loan is not specified. With fewer than two weeks left in the winter transfer window, City is still planning to add a centre-back, a winger, and possibly even a striker to their current roster of just one signing, right-back Woyo Coulibaly.
Up until June 2028, the most recent loan is backed by Premier League payments. In the event of relegation back to the Championship, it would also be protected from parachute payments due to the club.
In addition to taking out a loan against Premier League payments, City’s earlier agreements with Macquarie occurred in September of last year, when they brought forward the transfer installments they owed Chelsea for the Kiernan Dewsbury-Hall transaction. The Stamford Bridge club only paid £10 million up front; instead of waiting for the further installments this summer and next summer, City used Macquarie to obtain the remaining £20 million.
The most recent bank loan might help with January purchases, but it shouldn’t be taken as a sign that a spending binge is about to happen because there are big-money deals coming up. City is still trying to make sure they don’t surpass the financial loss threshold in upcoming seasons, even though they were spared a charge for violating the Profit and Sustainability Rules for the 2023–2024 campaign.
