Leicester City face points deduction after Premier League charges
Leicester City have been charged by the Premier League with two breaches of financial rules and could now face a points deduction next season if they return to the top flight.
Relegated clubs must still submit accounts to the Premier League for the previous three seasons and Leicester, who went down last season, have been charged with being in breach of the maximum £105million spending losses and for failing to submit audited accounts. If proved, that could mean a sanction similar to Everton’s six-point deduction.
The Times revealed earlier this month that Leicester were in serious danger of being charged. If they are not promoted — they have dropped to second in the Sky Bet Championship — then sanctions could be carried over by the EFL.
Leicester issued a strong response to the charge, saying the club would defend itself against “any unlawful acts by the football authorities”.
The Premier League said in a statement: “The Premier League has today referred Leicester City FC to an independent commission for an alleged breach of Profitability and Sustainability Rules (PSR) and for failing to submit their audited financial accounts to the league.
“The alleged breach relates to the assessment period ending season 2022-23, when the club was a member of the Premier League.”
Leicester were not subject to the new Premier League deadline of submitting accounts for 2022-23 by December 31 due to being relegated, but they did have to do so by the middle of March.
As the club will be dealt with under last season’s rules, there is no requirement for an independent commission to rule on the case before the end of this season so — as happened with the first PSR charges brought against Everton — any sanctions are likely to be imposed for the next campaign. Leicester are in the second automatic promotion spot as it stands, a point clear of third-placed Ipswich Town and with a game in hand.
Leicester have been warned by the EFL that they are also at risk of breaching financial rules for this season, and are likely to have to sell players to comply. The EFL said two weeks ago that its independent club financial reporting unit concluded the club “was forecasting to breach the profitability and sustainability loss limits for the three-year period ending with financial year 2023-24”.
Leicester, who won the Premier League title in 2015-16, will be allowed a total of £83 million in losses over the past three years — £70 million for two years in the Premier League and £13 million for this year in the EFL. Their 2021-22 accounts showed a £92.5 million loss for that season, and another loss is expected for the 2022-23 accounts due to be announced later this month. Clubs’ spending on academies, women’s football and facilities are exempt from the PSR calculations.
The club said in a statement: “Leicester City is surprised at the actions the Premier League has taken today. The club is extremely disappointed that the Premier League has chosen to charge LCFC now, despite the club’s efforts to engage constructively with the Premier League in relation to the matters that are the subject of this charge, even though LCFC is not currently a Premier League club.
“LCFC remains willing and eager to engage constructively with the Premier League and the EFL to seek the proper resolution of any potential charges, by the right bodies, and at the right time. The club continues to take careful advice about its position and, if necessary, will continue to defend itself from any unlawful acts by the football authorities, should they seek to exercise jurisdiction where they cannot do so, as occurred earlier this year.
“As we continue to represent the club’s position, we will continue to fight for the right of all clubs to pursue their ambitions, particularly where these have been reasonably and fairly established through sustained sporting achievement.”
The EFL is planning to close a loophole in its regulations after a ruling that Leicester did not have to explain via a business plan how they would deal with the expected breach of spending rules. Leicester argued the rule did not apply to their case and the matter was referred to an independent panel, which has found in the club’s favour.