King Power take new Leicester City action as Turki Alalshikh takeover talk swirls | OneFootball

Leicester City's owners have taken action on £8.5m of debt just months after putting the club up for sale

Leicester City owners King Power have converted £8.5 million of debt into equity amid speculation over the future of their ownership of the club.

According to journalist Rob Dorsett, the Thai group have essentially written off a portion of the money owed in favour of issuing more shares.

This comes in the aftermath of it being reported that the group led by Aiyawatt Srivaddhanaprabha are exploring a potential sale of the club.

King Power have been in control of the Foxes since 2010, and have overseen the greatest success in the team’s history in that time.

However, financial issues have plagued the last few years, which has led the side to fall from the Premier League to League One.

And now the group’s days in charge of the third division team appear to be numbered, with Leicester now up for sale.

Leicester owners take debt action amid takeover links

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It’s been reported that Leicester’s owners have converted £8.5 million of debt into equity despite the ongoing speculation regarding their future.

It was claimed earlier this month that three parties are interested in bidding to take over the League One club, with a deadline set of 14 September for initial proposals, which has now passed. Boxing mogul Turki Alalshikh has been linked with the purchase, having seen his takeover attempt of Derby County fall short back in the summer.

But this decision from King Power shows their continued commitment to the Foxes, who are hoping to earn promotion back to the Championship this season.

However, the £8.5 million injection is understood to cover the costs of dropping into the third tier, which has proven quite costly for the club.

King Power are believed to have a valuation of £200 million for Leicester, but it remains to be seen whether any party will be willing to meet that figure in the immediate future.

Leicester City’s difficult form

Leicester reached the heights of winning the Premier League in 2016 under the current ownership, and again achieved success in 2021 when they won the FA Cup for the first time.

But Russell Martin’s side are now struggling for form at the start of the new League One season, with the team winning just two of their first six fixtures.

This has led to pressure being put on the head coach, with the team already five points off leaders Sheffield Wednesday.

A 4-3 win against Stockport County last weekend showed some positive signs of life, but fans will be keen to see that form continue against Barnsley on 19 September before getting too optimistic about a turnaround in fortune.

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King Power haven’t given up on Leicester yet

Putting the club up for sale would be an easy excuse for King Power to stop paying such close attention to Leicester.

But this move shows that they’re still committed to the team, and that they will continue to run the Foxes in the way they see as right until a new owner is found.

It’s clear that their management of the club has fallen short of the required standards in the last few years, with significant financial issues leading to a real decline on and off the pitch.

Now is the right time to look to sell Leicester and move on before they potentially tarnish their legacy any further.