- Leicester City could face two separate points deductions
- The club is being investigated for breaching financial spending rules
Leicester City are reportedly set to face two separate points deductions this season for breaching spending rules, The sun.
The club is under investigation for breaching financial spending rules, with two separate investigations likely to be launched.
One question concerns Leicester’s compliance with the Profitability and Sustainability Rules (PSR) during their time in the Championship.
The implications of this could have a major impact on Leicester’s Premier League season, where they will face some of England’s best teams.
The Profitability and Sustainability Rules (PSR) are designed to ensure that clubs do not spend more than they earn, protecting them from financial crises and maintaining the competitive balance in the league.
Leicester City could face two separate points deductions this season for breaching the spending rule (stock image of team training session above)
Leicester will open the season at home to Tottenham under the management of Steve Cooper
Clubs in the UK are allowed to report losses within a certain limit, exceeding which they risk sanctions such as fines or points deductions.
Leicester’s financial problems may be linked to the club’s heavy spending in recent years, both in terms of transfer fees and player salaries.
They could find themselves in a similar situation to Everton, who were twice deducted points for financial overspending in three consecutive one-year periods.
Everton were initially given a ten-point penalty reduced to six points on appeal for offences in the 2021-22 period. However, they were later given an additional two-point penalty for the following period in 2022-2-23.
Leicester were sued by the Premier League in March and are under fire for breaching the club’s £105m loss limit for the financial period ending in 2022-23.
However, tThe case against Leicester City has been postponed after the club launched legal proceedings, claiming the Premier League had no standing to sue the club while they were in the Championship.
The charges relate to Leicester’s financial losses of £215.3m between 2020 and 2023, exceeding the £105m limit.
The EFL had already launched an investigation into the club’s finances during the 2023-24 season and predicted further overspending.
Although an attempt to enforce a business plan drawn up by the EFL was rejected on appeal, Leicester were hit with a transfer ban last season.
Sources have indicated that the Premier League is likely to push for two separate points deductions.
The Premier League has not yet commented on the ongoing legal proceedings with Leicester
The Premier League has not yet commented on the ongoing legal proceedings.
Meanwhile, Leicester will open the season with a home game against Tottenham under their new manager Steve Cooper.