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Premier League champions at 5000/1 odds. FA Cup winners. Champions League quarter-finalists. Back-to-back 5th place finishes. Then relegated. Then a 6-point deduction in the Championship that nearly sent them to League One. How did Leicester City go from the greatest underdog story in football history to financial collapse in just seven years? In this video, I break down the complete financial story behind Leicester City's fall from grace. This isn't about bad luck or poor management—it's about wage-to-revenue ratios, PSR (Profit & Sustainability Rules) violations, recruitment strategy failures, and the brutal economics that modern football inflicts on ambitious mid-table Premier League clubs. What actually went wrong? Using club finances data and transfer market analysis, I examine how Leicester's transformation from bargain hunters (Kanté £5.6M, Mahrez £400K, Vardy £1M) to big spenders (Iheanacho £25M, Slimani £29M, Pérez £30M) destroyed their financial foundation. We'll analyze their wage structure collapse, why their £200M+ net spend delivered negative returns, how Champions League revenue dependence became a trap, and why PSR rules forced the fire sale of Maddison, Barnes, and Tielemans. The brutal timeline: 2015/16: Premier League champions (miracle) 2016/17: Champions League quarter-finals (project) 2020-2021: Back-to-back 5th + FA Cup (sustainability?) 2022/23: Relegated (financial reality) 2023/24: -6 points in Championship (PSR violation) Nearly relegated to League One #premierleague #leicester #football