London City Lionesses' £10.6m loss tests WSL salary cap
American owner Michele Kang has transformed London City Lionesses with a high-profile transfer spree, but the club's massive operating loss will soon test the Women's Super League's new financial regulations.
London City Lionesses have added France winger Kadidiatou Diani to a summer transfer haul that already includes Spain’s Alexia Putellas and Mapi León, alongside former England goalkeeper Mary Earps. The recruitment drive is an audacious attempt to disrupt the Women’s Super League by an independent club that finished sixth last season. It has also left rival executives questioning how the Bromley-based outfit can afford such a payroll.
The scepticism is rooted in the club's most recent financial accounts for the 2024-25 campaign. During that promotion-winning season, London City generated just £902,000 in total revenue while recording an operating loss of £10.6m. That term operated without strict financial rules, but the WSL has since introduced a stringent salary cap.
Under the new regulations, a club's wage bill cannot exceed 80% of its revenue plus up to £4 million, or a further 25% of revenue, whichever is higher. Breaches carry severe sporting penalties, starting with a deduction of one point for every £100,000 overspent and escalating to ten points for exceeding the threshold by more than £900,000.
For now, London City benefits from a regulatory grace period. The league’s rules explicitly state: “The sanctions set out in these regulations for any salary cost threshold breach shall not be enforced against a club during the 2025-26 relevant period.” Sources at rival clubs confirm the current season is a dry run, with full enforcement beginning in 2026-27.
Owner Michele Kang is betting that an all-star squad will rapidly grow commercial revenue before the accounting deadline. The club must submit its financial documentation by September 2027, though public filings will not appear until spring 2028. Unlike many European rivals, Kang lacks a wealthy men's club to subsidise her operation.
Her model posits that top-tier players like the two-time Ballon d'Or winner Putellas can independently drive sponsorship and ticket sales. The club believes it has already triggered commercial growth across the league. However, if this investment fails to yield matching returns, the club faces severe sporting sanctions.
The strategy presents a defining test for the economics of European women's football. If successful, it could trigger a wave of aggressive private investment across the continent. Conversely, the spending highlights a widening wealth gap across the sport, contrasting sharply with budget cuts at Southampton and Plymouth, and the outright closure of Forest Green Rovers' women's side.
