Cost of sacking Ruud Van Nistelrooy explained as finance expert issues £61m Leicester City PSR reveal

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Leicester City are almost certainly going to be on the hunt for a new manager next season.

Ruud van Nistelrooy is in charge of the Foxes for now, but the summer could see an entirely new face as Leicester prepare for their return to the Championship.

Lee Carsley is on the radar of the eight-time winners of the second tier and is one of three mangers on Leicester’s shortlist.

One thing that the Foxes will have to consider when looking for a new manager is the cost of sacking Van Nistelrooy.

The Dutchman is under contract until 2027, meaning that a pay out will have to taken into consideration.

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How much will it cost Leicester City to sack Ruud van Nistelrooy?

Speaking to EFL Analysis’ financial expert Adam Williams, the amount of money spent on moving Van Nistelrooy on could be determined by one potential clause in his contract and they can expect to pay a ‘seven-figure fee’ to get rid of the 48-year-old.

He said: “If Leicester do part ways with Van Nistelrooy and there is no break clause in place, they will have to pay out his contract until 2027, plus his staff.

“We don’t have details of his salary but given that he’s still early in his managerial career, I don’t think he’ll have been on big money. The flipside is that Leicester have historically paid quite big wages, though the PSR saga might have forced the to re-evaluate.

“Whatever the cost, they will have to pay it out of their PSR quota and the same goes for whoever they choose as his successor.

“All in all, I think you’re talking easily talking seven figures.”

Leicester expected to record another loss

PSR has been a huge monkey on the back of Leicester in recent years and it isn’t out of the question to suggest they could fall foul of the EFL’s rules again.

Sheffield United were deducted points this season for very similar and given that the Foxes are given a smaller buffer on what they are allowed to lose in comparison to the Premier League, and Williams is expecting another loss for Leicester.

“Leicester’s PSR allowable loss will be £61m next year. They lost £19m in the last financial year, and they’re probably nearly at zero when you factor in allowable expenses,” he added.

“They will likely return to a financial loss in 2024-25 because of increased recruitment and wage spending. Given their recent history and the PSR context, the Van Nistelrooy compensation isn’t to be sniffed at.

“Of course, this is separate to this historic PSR stuff, which is a going concern too.”