Leicester City’s owners, the Srivaddhanaprabha family, have completed the purchase of King Power Stadium.
The deal means K Power Holdings Co Ltd has taken full control of the stadium from Teachers, an American pension fund manager.
The deal has a couple of major implications.
First, the club will no longer have to service the Hire Purchase contract with Teachers which was costing £1.5m every season. Outside the Premier league those repayments accounted for little more than interest. Worse still they would have risen on promotion, meaning less financial support would be available to the manager for investing in a team capable of staying up.
Second, the club can now much more easily redevelop the stadium if it ever looks like 32,000 seats might not be enough to satisfy demand. City averaged attendances of 30,983 during their only season of Premier League football at what was then the Walkers Stadium. It’s probably best not to get too carried away here.
The deal wipes out one of the two major sources of debt at the club. £17.4m was still owing to Teachers at the end of May 2o11. We’ll soon find out how much the other (in the form of loans from the owners) has grown.