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Thursday, 10 October, 2002, 14:04 GMT 15:04 UK
Leicester City shares suspended
Leicester City goalkeeper Ian Walker
The club is asking players to take a pay cut
Trading in Leicester City shares has been suspended, pending an announcement from the club.

In a brief statement to the London Stock Exchange, the football club said it would be holding a board meeting at 1500 BST (1400 GMT).

The meeting is thought to concern the club's financial position, which has deteriorated since it was relegated from the Premier League in May.

In its last business update, given on 23 August, Leicester City said it still had cash flow problems and needed to cut costs "significantly".

Tax and wage bills

The club is believed to have asked players to take a pay cut to help it reduce the wage bill by 20%.

It has also reportedly been ordered to pay a tax bill of 1.5m by Friday.

The club's official website has posted a message from chief executive Steve Kind saying that discussions with the players would be continuing over the next few days.

"We have approached our playing squad as part of the financial restructuring that is required following relegation from the Premier League.

"The discussions have been productive and we look forward to be able to execute the financial restructuring strategy," he added.

Troubled division

"We are just one of a number of First Division clubs who have already agreed or are seeking player wage reductions to manage the financial problems which are prevalent within the Football League."

The financial landscape for Football League football clubs suffered an earthquake when broadcaster ITV Digital collapsed earlier this year.

ITV Digital had signed a 315m three-year agreement to screen Nationwide League games.

The pay-TV broadcaster said disappointing audiences for the football had contributed to its financial problems.

Its attempt to renegotiate the deal with the Football League was unsuccessful.

The broadcasting rights have since been resold to BSkyB for a much smaller sum.

See also:

08 Jun 00 | Business
31 Jul 02 | Business
08 Oct 02 | Football
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