London City Lionesses Secure Future Funding Despite £10.6m Loss
London City Lionesses have received firm commitments from US billionaire owner Michele Kang to continue funding the club's ambitious growth plans, despite posting a substantial £10.6 million loss for the 2024-25 season. This financial result came during a landmark year when the club achieved promotion to the prestigious Women's Super League, marking a significant milestone in their development.
Substantial Investment from Benefactor
During the financial year in question, Kang injected £12.5 million into London City Lionesses through her investment vehicle YMK Holdings. This substantial capital infusion occurred as the club's revenue showed modest growth, increasing from £700,000 to £900,000. Kang, who also owns French powerhouse OL Lyonnes and NWSL team Washington Spirit, has positioned London City Lionesses as one of three clubs within her Kynisca sports group portfolio.
The club's heavy reliance on benefactor funding prompted auditor EY to highlight a material uncertainty regarding their business operations in their financial statements. However, both the club and Kang's Kynisca group maintain that written commitments for future support provide sufficient confidence to prepare accounts on a going concern basis.
Confidence in Long-Term Support
Paul Morton, chief financial officer of Kynisca who also serves on the London City Lionesses board, expressed unwavering confidence in Kang's continued backing. "We have had the benefit of working with Michele across all of our clubs for a number of years. We're aware of the bigger picture," Morton told City AM.
"We've seen her track record of funding. We've seen the commitments that she has made in writing to all of the clubs. We prepare the accounts on a going concern basis because we see the projections, we see her funding commitments, and we go, 'yep, happy days'. The auditors, by the way, have gone, 'yep, happy days'. They have also seen those commitments but they just flag that, because Michele is the key source of funding that therefore there is that uncertainty, but it's very typical and, net, we agree it's a going concern."
Strategic Investments and Sustainability Goals
Kang's significant financial resources have enabled the Women's Super League's only independent club to pursue aggressive growth strategies. These include attracting high-profile talent to solidify their position in the top division this season and accelerating plans to develop a female-centric training complex in Kent, representing a major infrastructure investment in women's football facilities.
London City Lionesses are anticipated to report another substantial loss for the current season, reflecting significant expenditure on star player acquisitions during the previous summer transfer window. Despite these financial challenges, CEO Martin Semmens emphasizes the club's commitment to developing a sustainable business model.
"I think the most important thing Michele said to me when we first met, and still says to me every day, is that she believes so much in what we're doing, that every penny that we spend is an investment, not a cost," Semmens revealed.
"The other thing she is clear about is she wants us to find a business plan towards sustainability. We want to be sustainable not because Michele is sitting there saying, 'I don't want to make investments'. She wants to be sustainable to prove that she's right about the business model."
The club's leadership remains focused on balancing ambitious growth with long-term financial stability, leveraging Kang's support while developing revenue streams that will eventually reduce dependence on benefactor funding.
