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Leicester spent just over £100m to sign six players across the 2021-22 and 2022-23 campaigns.
It was not just the transfer fees which were to cause issues, it was the salaries and the contracts.
The club's wage bill ballooned to £206m.
"Everybody assumed that they would a top-eight club," Football finance expert Kieran Maguire told BBC Sport.
"They effectively budgeted for that and didn't take into consideration the potential downside."
Maguire said Leicester became "a little bit complacent" with contracts.
Premier League player contracts would usually have clauses which would reduce a salary by between 30% or 50% upon relegation.
It is widely reported that, at the time, Leicester did not insert any.
"They had one bad season and they had no comeback in terms of relegation clauses and relegation avoidance clauses," added Maguire.
"It does seem that these contracts were awarded in such a way that they ignored the existential risk of relegation."
Without the safety net of these clauses, in the 2023-24 Championship season the club were spending 116% of their income on salaries.
The £107m wage bill was, Maguire said, "unprecedented for a second-tier football club".
Leicester may have won the Championship title in 2024, but it came at a cost. A huge cost.
Wages to income of the two other promoted teams was 84% for Leeds and 80% for Southampton. The Championship median average was 29%, said Maguire.
Wyeth said the Trust felt the budgets were "incredibly risky".
"There weren't enough safeguards in there for thinking what could go wrong," added Wyeth.
"We were all saying, what if we get relegated?
"The fans could see them walking into it."
After promotion in 2024 the club still had to face up to financial issues.
Trouble had already been signposted by a Profit and Sustainability rule (PSR) charge brought by the Premier League in March 2024. The club successfully appealed against that on a technicality over jurisdiction.
Then the spending in the Championship was the catalyst for a breach of the PSR threshold by £20.8m, which led to the points deduction.
But there would be no stay in the Premier League to ease their plight as the Foxes went straight back down to the Championship last season, finishing 13 points adrift.
"They've relied on player sales to dig them out of a really messy situation," said Maguire. "But if you keep selling your best players then that catches up with you."
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