Leicester City have quietly arranged fresh loans to accelerate income from a trio of recent departures, a move that shows how clubs increasingly smooth out income and manage cashflow in a volatile market.
The Foxes have used Australian bank Macquarie to monetise instalments they were due to receive over the coming seasons for Tom Cannon, James Justin and Kasey McAteer, pulling roughly £18.7m into the club now rather than waiting for staggered payments to arrive next year and beyond, according to Leicestershire Live.
Leicester City make clever financial decision
Leicester have a pattern of structuring outgoing transfer fees as multi-year instalments (often used to secure higher total deals or to bridge buyer/seller finances).
Instead of waiting, they have advanced the three payments owed by Sheffield United for Tom Cannon, a combined £5.7m that was due across the next two years.
They have pushed forward the two £2.5m instalments due from Leeds for James Justin, suggesting a base fee of about £7.5m, with add-ons potentially close to £10m.
They have accelerated two £4m payments from Ipswich for Kasey McAteer, implying a base fee of around £12m.
All together, these advances total £18.7m. That follows an earlier transaction in which Leicester borrowed £11.3m from Macquarie secured against future payments due from West Ham for Mads Hermansen meaning the club has now monetised close to £30m of incoming transfer cash in recent weeks.
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There are several practical reasons for such arrangements. Transfer instalments are useful for buyer and seller but create a timing mismatch for the selling club. Advancing the money helps with short-term liquidity.
Immediate funds can be used for day-to-day running costs, debt servicing, recruitment, or to respond to unexpected costs.
Turning future, sometimes uncertain, instalments into immediate cash gives the board and sporting directors firmer numbers to plan around.
Leicester’s deal with Macquarie to bring forward payments for Cannon, Justin and McAteer is a pragmatic cash-management move, it gives the club immediate resources and certainty, but at a price.
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