Leicester admit major cash problems

Leicester City today admitted they have ‘‘short and medium term cashflow problems’’ which will force them to sell players and cut wages in a bid to keep the club afloat.

The Foxes, who were relegated from the Premiership last season, are already feeling the pinch despite the £2.5m (€3.88m) summer sale of Robbie Savage to Birmingham.

Leicester have been left with a wage bill they claim, in a statement to the Stock Exchange, is ‘‘unsustainable in the Nationwide League’’, particularly after the closure of ITV Digital.

In a bid to ensure Leicester can remain a ‘‘viable business for the future’’, the club are to implement a plan aimed at ‘‘significantly cutting costs - primarily player wages’’.

In addition, talks are underway about a new share issue and the club will look to offload as many players as possible, with Muzzy Izzet their prized asset.

The Turkey World Cup midfielder has attracted interest from Middlesbrough, but the player has so far failed to agree to the move.

Leicester will move into the space-age Walkers Stadium this season, but are now anxious to renegotiate the terms of repayment to their creditors in order to produce a ‘‘more efficient utilisation of Leicester plc’s cash resources’’.