Leicester City rebuild checked by League One rule changes, Aiyawatt Srivaddhanaprabha funding affected | OneFootball

Leicester City’s summer rebuild will be constrained by new League One financial rules that cut wage limits and change how owner funding is treated.

The EFL confirmed in a statement that League One clubs had approved amendments to the Salary Cost Management Protocol to reduce losses and reliance on owners.

From next season, League One clubs can spend a maximum of 50 percent of turnover on player wages, reduced from 60 percent, with manager costs now included in the calculation.

Relegated sides in their first League One season, including Leicester, will be allowed to spend 65 percent of turnover on wages, down from 75 percent.

Equity injection rules have also changed. The staggered approach has been removed, so all owner cash injections will be included in the calculation at 50 percent, affecting any money Aiyawatt ‘Top’ Srivaddhanaprabha puts into the club.

By way of example, if an owner invests £500,000, a maximum of £250,000 can be used for wages on top of the turnover-based allowance.

The framework is intended to direct investment towards areas such as infrastructure and youth development, while strengthening financial control and sustainability across the division.

Source: LeicesterMercury.co.uk