Leicester were charged in March 2024 with a breach of the PSR rules for 2022-23 after reporting losses of £89.7million for that year alone, with top-flight sides only permitted to lose £105million over a rolling three-year period.
The club later successfully appealed against the Premier League’s right to charge them after there was confusion over which division they were registered in when they submitted their accounts following their relegation to the Championship.
Leicester had previously blocked an attempt from the EFL to sign them up to an agreed business plan in November 2023 after concerns were raised about another potential PSR breach for 2023-24.
But speaking on talkSPORT on 2 December, finance expert Kieran Maguire revealed King Power Stadium chiefs are “very confident” of avoiding a spending breach following their transfer dealings last season.
The club brought in around £90million across the latest accounting period following the sales of Harvey Barnes, Timothy Castagne and Kiernan Dewsbury-Hall as well as the compensation fee for Enzo Maresca’s move to Chelsea.
But sources have told Football Insider Leicester remain the club most at risk of breaching the spending rules for 2023-24 and are likely to have exceeded the allowable losses limit by some distance.
Leicester City could face points deduction after PSR update
If Leicester were to be charged with a PSR breach, they would likely land a points deduction after Everton and Nottingham Forest were both docked points last season.
Leicester City finds itself in a precarious position as the Premier League club battles both poor on-field performance and the looming threat of a points deduction. Currently sitting second-to-last in the standings, Leicester’s survival hopes hinge on a strong second half of the season—if they can avoid additional punishment off the pitch.
The club has endured a dismal campaign, losing four of their last five matches and drawing one. While their on-field struggles have been significant, the possibility of a points deduction due to violations of the Premier League’s Profit and Sustainability Rules (PSR) could seal their fate.
Leicester has a history of financial irregularities. In the 2022/23 season, the club was fined €25 million for exceeding allowable losses. Now, with the submission of their 2023/24 financial documentation under scrutiny, the Premier League is expected to announce its decision by mid-January 2025. A points deduction would almost certainly doom the club to relegation.
This isn’t the first time Leicester has faced such a scenario. Last season, they narrowly avoided a points deduction by arguing they were no longer part of the Premier League when financial reports were published. However, that argument won’t apply this time, as the club remains part of the English elite.