“SHOCKER: Leicester City SLAMMED with MASSIVE 12-Point Deduction NIGHTMARE!”

Leicester City were initially charged in March 2024 with breaching Premier League spending rules after posting losses of £90 million for the 2022-23 season.

Under Premier League regulations, clubs are only allowed to lose £105 million over a rolling three-year period.

Despite this, the club will not face punishment for the 2022-23 infraction due to a technical loophole in the rules.

Now, Leicester are facing new charges from the EFL over an alleged breach of financial rules during the 2023-24 season, in which they earned promotion back to the Premier League.

The matter has been referred to an independent commission, and the club could now face a points deduction following their relegation to the Championship.

Previously, Everton were docked six and then two points for similar Profit and Sustainability Rule (PSR) violations, while Nottingham Forest had their penalty reduced to four points due to cooperation.

According to sources cited by Football Insider, Leicester are expected to be charged with an aggravated breach, which could result in a minimum six-point deduction, although the commission has the authority to impose a heavier sanction.

The club also suffered a significant financial hit of £72 million last season as revenue dropped from £177 million in 2022-23 to £105 million.

Though losses were reduced to £19 million for 2023-24, this was still insufficient to meet PSR requirements.

Leicester’s spending limit for the three-year cycle ending in 2023-24 was £83 million, significantly lower than the Premier League threshold due to the £13 million annual cap in the Championship compared to £35 million in the top flight.

In response to the charges, Leicester issued a statement affirming their intention to cooperate: “The club intends to engage co-operatively in this matter now that the Premier League’s jurisdiction has been established for the period ending FY24.”

Meanwhile, in preparation for the upcoming season, Leicester’s board is making moves to appoint a new manager following their drop to the Championship.

As reported by Football Insider on May 20, the club is in advanced negotiations with Russell Martin to take over.

Martin, who guided Southampton to promotion last season, is seen as a strong candidate to replace Ruud van Nistelrooy.

While other options were explored, the 39-year-old’s recent success has made him the preferred choice.