Leicester City quietly arranged fresh loans to accelerate revenue from the recent departure trio. This shows how clubs can smooth their incomes and manage their cash flow in unstable markets.
Fox used Australian bank Macquarie to monetize installments that Tom Cannon, James Justin and Casey McCarter will receive over the upcoming seasons, drawing around £18.7 million into the club rather than waiting to arrive next year or later.
Leicester City makes clever financial decisions
Leicester has a pattern of building transfer fees as installments for several years (often used to ensure a higher total transaction or bridge the finances of buyers/sellers).
Instead of waiting, they proceeded with three payments Sheffield United borrowed for Tom Cannon.
They pushed James Justin’s £2.5 million installments from Leeds, suggesting a base rate of around £7.5 million, with the add-ons likely to be close to £10 million.
They accelerated Kasey McAterer’s £4 million payments from Ipswich twice, meaning a base rate of around £12 million.
All together, these advances total £18.7 million. This means that Leicester has been secured for future payments from West Ham for Muds Ham, following his previous deal in which he borrowed £11.3 million from Macquarie.
Championship clubs require immediate cash injections
There are several practical reasons for such arrangements. Transfer installments are useful for buyers and sellers, but creates timing discrepancies for sales clubs. Money advances can help short-term liquidity.
Immediate funds can be used to deal with daily running costs, debt services, recruitment, or unexpected costs.
In the future, sometimes uncertain installments to instant cash, turn boards and sports directors with stronger numbers to plan.
In Leicester’s Macquarie agreement, Cannon, Justin and McCatier payments are a practical cash management move, giving the club immediate resources and certainty, but there is a price.
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