According to reports, Leicester City have been hit with a six-point deduction after being found to have breached the Premier League’s financial rules. The punishment now leaves them in 20th place, only just outside the Championship relegation zone on goal difference.
As per the Telegraph, the Foxes punishment comes after a long legal battle, with their hearing taking place in November in front of a panel. The club have been found to have breached Profitability and Sustainability Rules [PSR] for the 2023-24 season, when the club was last operating in the second tier.
After the Premier League confirmed the charges in May, Leicester were also accused of failing to provide their annual accounts before the December 31 deadline. There was an additional charge after failing an “obligation to provide full, complete and prompt assistance to the Premier League”.
Why Leicester Have Been Punished
Leicester have been punished as they have suffered more financial losses than PSR regulations allow. Indeed, across the three-year rolling period ending June 30, 2024, the Foxes have made combined losses of over £200m. PSR regulations only permit a maximum of £81m over that period, with adjustments for deductions.
They had previously won an appeal against their first alleged breach of PSR when, in September 2024, a panel found that the Premier League did not have the jurisdiction to punish Leicester as they had been relegated to the Championship when their accounting period ended on June 30 2023.
On this occasion, however, they have been unable to avoid punishment. With Leicester outside of the Premier League, the English Football League issued the punishment with immediate effect, having met on Thursday (5 February) to apply the sanction.
The EFL enforced the points deduction as per regulation 87.7, which states the league “has the power to implement sanctions equivalent to those recommended by any independent Premier League commission or appeal board”.
Leicester Statement
Leicester have since released an official statement on the points deduction, expressing their ‘disappointment’ with the decision. They also note that they are ‘considering the options available’ to the club now. In full, it read:
“It is with disappointment that Leicester City acknowledges the Independent Commission’s decision and the Club will use the time available to consider its next steps.
“While the Commission’s findings significantly reduced the unprecedented scale of the sanction originally sought by the Premier League, the recommendation remains disproportionate and does not adequately reflect the mitigating factors presented, the importance of which cannot be overstated given the potential impact on our sporting ambitions this season.
“We appreciate the Commission’s agreement with the Club’s position that compliance for FY24 should be assessed over a 36-month period – an important point both for the period in question, but also in providing the Club with certainty on its PSR/P&S compliance for FY25. The panel also agreed there were no aggravating factors which should be applied to the sanction, which is something the Club had maintained throughout, and acknowledged the Club demonstrated a positive trend in its finances in FY24.
“We are now reviewing the decision in full and considering the options available to us. We remain committed to engaging constructively and ensuring that any action is fair, proportionate and determined through the appropriate processes.”