Leicester City are heading towards financial ‘Armageddon’ without fresh capital and improved results, says prospective owner Neil Lal.The Scottish-Indian businessman, who is president of the Indian Council of the United Kingdom, is fronting a group to try and buy Leicester.Lal has issued a stark warning over Leicester’s finances amid a potential takeoverNeil Lal - LinkedinLal’s Barrett’s consortium has three other investors, each also seeking 25 per cent of the club, with significant backing from India.“We are all wealthy businessmen,” said Lal, speaking exclusively to talkSPORT. “Rather than going through the bankers of Leicester City Football Club, we have contacted the board directly, which saves time. We have made an offer.“It is now a waiting game, but we are in contact with the club, which is a positive… our key objective is financial stability from the start.”talkSPORT understands Leicester has set a deadline of September 14 for initial offers from interested parties, and there are at least three active groups in the process.Saudi executive Turki Alalshikh has also been sounded out following his decision in August to pull out of buying Derby County, Leicester’s east midlands rivals.Leicester owner Aiyawatt ‘Top’ Srivaddhanaprabha is seeking over £200million and, according to Lal, any new owner would also have to assume significant debt on top of that price.Leicester warned of more financial woes“In my view, the club is overvalued,” Lal, one of the leading voices promoting Scotland-India trade, explained. “Leicester is valued as a successful Championship club, and yet it’s in League One. So, for me, the valuation is over the top. “The second point is, the debt is a major concern, and the future liabilities. We have got to look at the books. That’s important.“I hope I am wrong, but I fear if something is not done quickly there could be more financial struggles ahead for Leicester.”Leicester have tasked investment banking firm Citigroup with finding a new owner.Saudi boxing chief Alalshikh is understood to have been sounded out over a purchaseGettyAn eight-page pitch deck, seen by talkSPORT, emphasises Leicester’s history and facilities, and stresses the appeal of investing in the ‘third-largest English city with only one (football) club’.Leicester’s fall from graceA decade ago, the Foxes won a fairytale Premier League title under Claudio Ranieri at pre-season odds of 5000/1. Yet, they now find themselves in League One and have won only one of their opening five league games under new manager Russell Martin.The weekend’s 4-0 loss to Oxford United was a new low, and some Foxes fans have called for Martin to be sacked.“That defeat was not good,” said Lal. “It was very disappointing. It doesn’t bode well for the club. “I’d rather not say too much because, as you can appreciate, it will affect outcomes, but I understand the manager was with Rangers at one point, and he left there. “Obviously things are not going well at Leicester at the moment but we’ve got to be positive. Hopefully, things turn around. What I will say, though, is we are people of zero tolerance, and we are here for the long term.”Leicester have suffered turmoil on and off the pitch, and now play in the third tierGettyLal sees appeal in Leicester’s storied past, but admits the Foxes must come to terms with their perilous present. He also believes Leicester’s multi-cultural community is a huge asset, and that the thriving Indian population can be better engaged with. Lal has aspirations to promote and commercialise Leicester in India where, as former Premier League winners, the club is already well known.“Leicester winning the Premier League (in 2015/16) was probably one of the greatest sporting triumphs of all time,” he said. “If someone said to me in 2014, Leicester is going to win the league, I’d have thought, ‘Okay, listen, they’ve had too much to drink. Go and see a doctor!’“Winning the Premier League and the (2020/21) FA Cup, and doing well in Europe, was fantastic. And Leicester has a great set of loyal fans.“There is potential there. And yet there’s many things we’ve got to do to make things better. We’ve got to be profitable. We’ve got to have financial stability. We’ve got to think about winning. That’s the key thing. “We have also got to respect the tradition of what’s happened, and the late owner (Khun Vichai), Top and the whole (Srivaddhanaprabha) family. “This is not a quick fix by just throwing the kitchen sink at it. This is a long-term strategy. It’s a five-year plan to get Leicester back to the Championship and then the Premier League, and we don’t just want to go up a division only to come back down again after a year.”Lal’s comments echo a recent statement by the Foxes Trust which called on Leicester City to “reassure supporters on the financial health and viability of the club until a sale has taken place”.Leicester were crowned as Premier League champions just a decade agoAFP or licensorsLal’s consortium are open to putting a fan representative on the board and also plan to consult several Leicester legends on key club decisions.“I’ll definitely consider that (putting a fan on the board),” said Lal. “I understand where the Foxes Trust are coming from and I agree with many of their points. “There has got to be community and fan engagement. We have got to listen to the fans. This is vital. Without the fans, we are nothing. And I think having a committee of maybe six to eight ex-Leicester footballers to discuss the buying and selling of players would be a good thing. “I’m a numbers person. I just want the club to be financially viable and profitable. But regarding recruiting players or picking managers, I think we should leave that to the experts to come back to us with suggestions. That’ll be the best way.”Several investors contacted by talkSPORT believe a sale is not just desired by Top but required. There is a danger without one Leicester are heading towards Administration, which comes with an automatic 12-point deduction.The challenge for Lal, and other interested parties contacted by talkSPORT, is Leicester are yet to share the full financial picture of the club making future liabilities hard to predict before undertaking the rigorous due diligence process.This may be down to Citigroup wishing to whittle down a shortlist of viable owners first, which is a normal step, or even a hope of jumping straight to a preferred bidder, who would then traditionally be handed an exclusive period to comb through the books.talkSPORT has learned at least two groups have walked away from the process due to concerns over the club’s debt from the limited financial information already provided. Lal’s own fear is that results on the field decline further before he has a chance to influence the club.Martin is already under pressure as the new Leicester boss amid poor resultsGetty“If we’re going to progress further, and Leicester is falling down (the table), it doesn’t bode well,” said Lal, who has no plans to sell off the club’s Seagrave training centre or the 32,259-capacity King Power Stadium. “If, God forbid, Leicester ever drops down to League Two, financially, it’s Armageddon. It really is.“Right now, we have a club that has a huge wage bill and debts, and it’s in League One. That’s a concern. “My fear is if this continues for the long term, over the next two-four months, and Leicester’s not playing well in the league, then unfortunately, we are going to have to review the situation and possibly walk. And I don’t want to do that…“The foundations are there, but the problem is the financial stability is not. In my humble opinion, I think the club has been a bit mismanaged.”Leicester is not the only club Lal is looking at. He is also open to investing in Rangers. Although the Foxes are his primary focus, building a multi-club network is not discounted.“Rangers are going through a bit of a tough patch at the moment,” said Lal. “New owners [Andrew Cavenagh and 49rs Enterprises] have taken over and, obviously, they need time, but there’s also financial losses. So at the end of the day, if the opportunity arises and we can come to the right price, we may look at the situation. “Unfortunately, in Scotland, the [country’s] coefficient ranking has dropped, which impacts European qualification, adding extra playoff rounds.“Rangers have huge support. It’s a wonderful club. If the opportunity arises, we may look at it. It’s Leicester right now, and then if Rangers ever comes up, let’s see what happens.”Leicester could have new ownership by the end of 2026GettyLal will not be afraid to make difficult decisions if successful in buying Leicester, but he is also keen to protect the legacy of both King Power and the Srivaddhanaprabha family.Part of the reason he has made a direct offer to the club, bypassing Citigroup, is a belief that dealing directly with Top stands the best possible chance of agreeing a deal, and persuading the Leicester owner to lower his asking price.“I have total respect for Top and his late father,” said Lal. “They have put a lot of money into the club. Unfortunately, financially, the club’s not doing great right now. But we’ve got to respect that remarkable 5,000/1 win… I can assure you no one wants to erode and disrespect that legacy. “Top and his family, for me, are Leicester royalty, and they should always be part of the club… But we’ve got to be truthful as well. Integrity, character, morals, and principles are the four key points I’ll always adhere to.“Without financial stability, we can’t move forward. The problem is, and this is not only with Leicester but across many football clubs, you can’t just lose money year after year. This is why you have many clubs going to Administration, and some have actually closed completely. We can’t have that with Leicester.”It’s a worrying time for Foxes fans, both on and off the field, but sources have told talkSPORT the intent is to have a new owner in place before the season ends, and potentially even by the end of this year.Leicester were approached for comment.