By Martin Graham
Leicester City may face a points deduction after being charged by the Premier League for a possible violation of financial regulations during the 2023-24 campaign, when the club played in the Championship. The matter has been handed to an independent commission following a decision that confirmed the Premier League has jurisdiction in this case, despite Leicester having moved between divisions in recent years.
The development follows a prolonged arbitration over whether the Premier League or the English Football League (EFL) had the authority to act. A recent tribunal ruled in favour of the Premier League, enabling it to proceed with the charges. As a result, the disciplinary process will fall under the league’s 12-week fast-track procedure, which could see any resulting sanction, such as a points deduction, applied in Leicester’s 2025-26 Championship campaign.
However, financial analyst Kieran Maguire suggested a penalty might not be enforced while Leicester are outside the top flight, due to the Premier League and EFL operating as separate organisations. In addition to the primary charge, the commission will consider two other alleged violations: failing to submit financial documents by 31 December 2024 and not cooperating fully with Premier League inquiries.
Clubs in the Premier League are allowed to lose up to £105 million over a three-year span, though this figure drops by £22 million for every season spent in the Championship. Leicester’s most recent financial statements, covering the year ending 30 June 2024, showed a £19.4 million loss.
In 2022-23, the club reported a loss of £89.7 million, following a record £92.5 million loss in the previous year. These figures exclude certain permitted deductions, such as spending on club infrastructure and investment in women’s football, which governing bodies often view as beneficial to the sport.
Following their latest relegation to the second tier, Leicester stated they would cooperate fully now that the league’s jurisdiction over their 2023-24 financial year has been established. The club has experienced relegation twice in three seasons, further complicating their financial situation.
Last year, Leicester successfully appealed a separate PSR charge related to 2022-23, arguing that because they had been relegated, the Premier League lacked authority. The panel agreed at the time, although a recent tribunal has stated that ruling was incorrect – though not unreasonable enough to reverse.
In response, the Premier League revised its rules in April, ensuring that its financial regulations would apply even to clubs no longer in the top division. The EFL confirmed it had passed Leicester’s case to the Premier League and acknowledged the referral to the commission.
Leicester’s financial troubles stem from a mix of factors. In 2022-23, they dropped from eighth to eighteenth in the table, which significantly impacted their income from league position bonuses. The club had planned budgets around a stronger finish, which they failed to achieve.
The absence of European competition also affected earnings, despite a deep run in the Europa Conference League the previous season. Managerial changes added further cost, particularly the departure of Brendan Rodgers and his staff. Although the club made a £74.8 million profit from transfers in 2022-23, it wasn’t enough to prevent a major overall loss. Budget restrictions continue to hinder new signings, as seen in January when manager Ruud van Nistelrooy was limited to a modest acquisition of Woyo Coulibaly for £3 million.
