Exclusive: Leicester Facing Severe Points Deduction After Narrow Escape

Leicester City faced charges in March for breaching the Premier League’s profit and sustainability rules (PSR) for the 2022-23 season.

The club reported a loss of £89.7 million for that year, while the league permits a maximum loss of £105 million over a rolling three-year period.

Leicester argued that they were no longer a Premier League team when they submitted their accounts on 30 June 2023, following their relegation to the Championship.

However, an independent commission rejected this argument in July, ruling that Leicester could still be charged by the Premier League.

On 3 September, Leicester announced that their appeal against this ruling had been successful, meaning they would not face a points deduction for their 2022-23 financial breach.

The independent panel criticized the PSR rules, stating that they were “far from well drafted.” Meanwhile, the Premier League expressed its “surprise and disappointment” at the decision.

Despite avoiding a points deduction for the previous season, Leicester might still face penalties for the 2023-24 season due to potential breaches.

Sources have indicated that the club is “well short” of staying within the spending limits, even after earning around £40 million from the early-summer sales of players like Kiernan Dewsbury-Hall and Enzo Maresca to Chelsea.

Although Leicester were a Championship team last season, they were a Premier League club when their accounts were submitted at the end of June.

This leaves them vulnerable to charges if they are found to have breached the rules again.

A points deduction could be the likely consequence, as seen with Everton and Nottingham Forest last season.

Losing points would significantly hinder Steve Cooper’s efforts to keep Leicester in the Premier League this season, especially after the team has only secured one point from their first three games under his leadership.