“Leicester City Facing Catastrophic Point Deduction Disaster Next Season Amid Financial Meltdown!”

Leicester City may face a minimum 12-point deduction as they prepare for the upcoming Championship season, according to reports.

The club is in financial turmoil following efforts to retain their Premier League status.

Their unexpected relegation in 2023 significantly reduced their revenue and affected the financial limits imposed over a rolling three-year period.

Although they secured promotion in the 2023/24 season, they are set to return to the Championship and have been referred to an independent commission for allegedly breaching the Premier League’s profit and sustainability rules during that same campaign.

Previously, Leicester were investigated for exceeding PSR limits by £19.5 million over the three years leading up to 2023.

However, they avoided punishment due to a technicality, successfully arguing they were neither a Premier League nor a Championship club when their 2022/23 accounts were submitted. That loophole has since been closed.

The club has now reported combined losses of £201.6 million over the most recent three-year cycle. However, they are only permitted to lose £84.5 million over that period since one of those years was spent in the Championship.

Financial regulations allow Premier League clubs to lose up to £35 million annually, while Championship sides are limited to £13 million per season, with a slight increase to £14.5 million for 2023/24 due to inflation-related adjustments.

Leicester are being investigated for breaching financial loss thresholds, failing to submit their accounts by the December 31, 2024 deadline, and not cooperating fully with the Premier League’s inquiry.

If these allegations are proven, the penalties could be severe.

The Athletic notes that with both the Premier League and EFL having prosecuted several PSR violations, there is now a clearer picture of likely punishments.

A significant breach, particularly if deemed “aggravated,” could result in a substantial points deduction.

Given Leicester’s previous resistance to punishment and their latest failure to submit accounts on time, the case is likely to be treated as aggravated.

This would make a 12-point deduction the starting point, with the Premier League potentially pushing for an even harsher sanction.

Leicester are currently among the early favourites for promotion back to the Premier League. However, a 12-point penalty would greatly reduce their chances of an immediate return to the top flight.

By comparison, Sheffield United began the previous season with a two-point deduction for failing to meet payment obligations to other clubs, yet still finished third and reached the play-off final.

Leicester, facing a far more significant penalty, may struggle to replicate such a feat.