Leicester City faces allegations from the Premier League for purportedly violating financial regulations over their last three seasons in the top division.
The club is accused of breaching profit and sustainability regulations (PSR) and not submitting audited financial statements. Consequences for these allegations could include a deduction of points for the Championship contenders.
Additionally, Leicester is undergoing a separate financial examination by the English Football League (EFL). The club expressed its surprise and dismay at the timing of the Premier League’s actions, especially since it is no longer in the top tier. Leicester has declared its intent to contest any unauthorized actions by the football authorities and has shown willingness to engage constructively with both the Premier League and the EFL to resolve any potential charges appropriately.
Leicester’s financial performance for their final Premier League season remains undisclosed, but records show a significant loss in the year leading to May 2022 and a pre-tax loss during their FA Cup-winning season. Premier League regulations allow for losses up to £105m over three years without incurring penalties.
The club now finds itself among others, like Everton and Nottingham Forest, who have also been charged for similar financial discrepancies. Unlike these clubs, Leicester did not need to submit their accounts by the end of the year due to their relegation, and the timing for their case proceedings is determined by an independent commission, potentially delaying any sanctions until the next season.
Leicester is contending with dual financial investigations, including an ongoing EFL inquiry into the current season’s PSR rule compliance. The club maintains its dedication to the PSR rules, highlighting a consistent commitment through its operational model over time. A previous dispute in 2018 resulted in Leicester paying the EFL £3.1m to settle a Financial Fair Play disagreement from their 2013-14 Championship-winning season.
With the referral to an independent commission, Leicester City now navigates a complex situation that could impact their promotion race and, depending on the outcome, might begin the next Premier League season, should they be promoted, with a points deduction.
