The eight-seater helicopter belonging to Vichai Srivaddhanaprabha had flown from the King Power Stadium pitch live on TV moments before the explosion.
The helicopter took off at around 8.45pm and nosedived in a ball of flames less than 200 yards away just seconds later.
Eye-witnesses said the AW169 helicopter spiralled out of control in the air with an apparent problem with the tail fin.
A source close to the family told the BBC Srivaddhanaprabha was in his helicopter when it crashed.
According to Reuters, a source claimed the club owner was among five people who were on board the aircraft, as well as a daughter of Vichai, two pilots and a fifth person whose identity was not immediately known.
However it has since emerged that Mr Srivaddhanaprabha’s daughter is not believed to have been on board at the time of the crash.
Team manager Claude Puel said this morning the crash is a “tragedy” and added he is “terribly sad”.
He told Sports Radio France: “It’s a tragedy for the club.
“I think very strongly about the victims and their families, and I wanted to reassure everyone who cares about me, I’m terribly sad but I’m fine.”
This morning, Jacques Bonnevay – the team’s assistant manager tweeted in French to say: “Leicester en Pleurs”, meaning “Leicester in tears”.
Fans and supporters have flocked to the stadium this morning to lay floral tributes following the horror helicopter crash.
Joe Birch, 24, a big fan of the team said: “I saw it from the telly last night, it was terrible.
“I have a season ticket, I am a fan of the team. It was devastating, especially not knowing what has happened. The crash was really bad , I hope there are survivors but I don’t think so.”
Images taken at the scene show the helicopter engulfed in flames as fans leaving the ground watched on in horror.
It is feared several people were killed. Supporters were forced to run for their lives from debris falling to the ground as the helicopter crashed.
The chairman’s son Aiyawatt, who is the club’s vice-chairman, and director of football Jon Rudkin were not on board, according to sources.
Leicester City goalkeeper Kasper Schmeichel was seen in tears outside the stadium as fire crews doused the flames.
The wife of England and Leicester City legend Peter Shilton was among the eye-witnesses who saw the horror unfold.
Stephanie Shilton, 50, said: “It happened straight in front of us as we were leaving the ground. It’s horrendous.”
Leo Bruka, 27, who lives near the stadium, told The Telegraph he was driving home from work when he saw the helicopter falling.
He said: “I saw the helicopter coming down, it was spinning very quickly.”
One man, who wished not to be named, but has had a season ticket for over 40 years, said: “I saw Kasper Schmeichel run out first and then loads of security guards and stewards.
“I was stood outside the ground but it crashed on the other side. I hope everyone is OK.”
Srivaddhanaprabha is well-known for leaving the stadium by his helicopter, which lands in the centre circle on the pitch, after every Leicester home game.
BT Sport pundit Jake Humphrey pointed to the aircraft from the studio during a live broadcast at the stadium and said: “As you can see the owners are now heading off.”
A loud explosion could be heard on post-match analysis show Premier League tonight just moments later.
The crash was then confirmed by the host live on air and the programme brought to an early end as the crew was evacuated from the stadium.
Leicester had just played West Ham in a 1-1 draw in the Premier League. The 5.30pm kick-off finished at around 7.30pm.
A Leicestershire Police spokesman said: “Emergency services are currently dealing with an incident at the King Power Stadium, in Leicester, after an aircraft came down in a car park behind the ground.
“Officers are working alongside the ambulance service, Leicester Fire and Rescue Service, the Air Accident Investigation Branch and Leicester City Football Club to establish the exact circumstances of the collision.”
East Midlands Ambulance Service NHS Trust tweeted: “We are also in attendance and will update when possible.”
One witness told Sky News: “I hope they’re okay. Doesn’t seem like they have had much of a chance. Just burst into flames.”
One fan told Sky News the owner and his family have done so much for the club. He said: “They have conducted themselves so well, they have put everything into us. They have made us champions. You cannot ask for more from your owners.”
Jonathan Ashworth, Labour MP for Leicester South, tweeted: “Awful horrific scenes at @LCFC with the helicopter crash. I’ve been in touch with our emergency services and thanked them for responding so quickly. Our hopes and prayers for all those caught up in this desperately awful incident.”
Broadcaster and former Leicester City footballer Gary Lineker tweeted: “Hearing that the Leicester City owners’ helicopter has crashed in the club’s car park.”
Thai billionaire Srivaddhanaprabha is the founder of King Power Duty Free and is worth around £2bn.
He bought Leicester City Football Club in August 2010 and invested millions into the club.
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The club won promotion to the Premier League under his ownership in 2014 and then, incredibly won the Premier League title in 2016. The achievement is seen as one of the greatest in footballing history.
Premier League football clubs and players have expressed their shock since the news broke.
Leicester stars and England internationals Harry Maguire and James Maddison were among those to share tweets showing their prayers are with those on board with a series of emojis.
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