How will Leicester City's title win help local business?

Leicester City are set for an estimated £250m windfall following their historic Premier League win, with manager Claudio Ranieri pocketing a reported £5m in bonus payments.

However, the wealth doesn’t end there - economists are predicting a knock-on effect throughout the city, with local businesses set to profit on the 5000/1 title triumph.

Not for the first time …

Research from business information site Company Check suggests that local businesses in Leicester could be on the verge of a huge growth period.

The study looked at the success stories of AFC Bournemouth and Swansea City AFC and the total number of businesses trading in the region before and after their respective achievements.

The number of businesses in Bournemouth grew by 15 per cent in 2011 (compared to a nine per cent UK average), and has maintained an above average growth percentage since.

Swansea, meanwhile, reaped even bigger dividends, with the Swans’ 2011 promotion to the Premier League adding £58 million to the local economy.

The ‘Vardy Party’ effect

The ‘Vardy Party’ - a phrase which came to embody Leicester’s triumph - is in full effect. And this means one thing for local businesses in the leisure industry - profit.

The Mayor of Leicester Peter Soulsby was quick to launch proceedings, and declared the next few months as party season.

Local pubs, clubs and restaurants will inevitably feel the benefits of a population more than happy to splash the cash celebrating their team’s victory, and some quick-witted businesses have even upped the ante with novelty products.

However, increased footfall should be met with a hint of caution. Additional custom can bring its own risks - busy pubs, clubs and restaurants are inevitably more susceptible to accidents and injuries, and business owners would be wise to double check that they have the right insurance in place.

Tourism in Leicester

Another industry - and one not traditionally associated with Leicester - that could profit from the victory, is the local hospitality and tourism sector.

Aside from the sporting success of Leicester City and Rugby Premiership giants Leicester Tigers, visitors can also check out some of the City’s history - including a homage to King Richard III who was buried in the region.

Local hotels, bed and breakfasts and guest houses can expect an influx of foreign tourists too.

Foreign fans, including a large dose of those from Thailand (the same country as the Foxes’ owner) are expected to make the journey to the East Midlands, whilst a Champions League campaign will see visiting fans from all over Europe descend on the city.

Match-day income

And then there’s match-day. Caterers around the King Power Stadium will have been some of the most directly affected by increased attendances and match-day interest, while popular supporters pubs would have welcomed the extra footfall.

Market traders selling merchandise and memorabilia can also expect to continue seeing profits rise, as fans look to snap up as many ‘Champions 2016’ branded goods as possible.

Has your business seen a boost from Leicester’s title win? Tell us in the comments below.

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