Leicester face ALMOST CERTAIN points deduction as PSR challenge is thrown out by Premier League
LEICESTER are facing an almost certain points deduction next season – before kicking a ball on their return to the Premier League
The promoted Foxes had argued that Prem bosses had no right to charge them for a 2022-23 Profitability and Sustainability Rules breach BECAUSE they were relegated to the Championship.
But after an independent commission found in favour of the Prem, Leicester could be deducted 10 points or MORE within weeks of the new campaign beginning unless an appeal by the club succeeds.
And that could effectively consign them to the verge of the drop before new boss Steve Cooper has properly got to know his players.
Leicester were charged with a PSR breach in March and also with “failing to submit their audited financial accounts to the League.”
Clubs are only permitted to make “allowable losses” – after a complicated calculation – of £105m over three years, with Leicester’s published financial figures showing they were substantially over the limit, although the precise scale of the breach is unclear.
The Foxes had previously won a legal case against the EFL, successfully arguing it did not have the authority to impose spending cuts this season because they were a Prem side at the time of the alleged offences.
When the Prem charges were announced, Leicester confirmed their intention to fight the League’s right to attempt to sanction them, branding the proposed action “unlawful”.
At a hearing last month, Leicester argued that the rules could not apply to a club that was no longer in the Premier League and that the alleged breach was only committed after relegation.
But Prem lawyers successfully suggested that unless the breach was dealt with under its processes Leicester would get away with their actions as no League would have jurisdiction over them.
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Premier League sides deducted points and others at risk
Nottingham Forest
Deducted four points during the 2023-24 season for breaching Premier League spending limit by £34.563m. Failed in their appeal with decision upheld.
Everton
Initial 10-point deduction for 2021-22 Premier League breaches reduced to six points on appeal. Were deducted a further two points later in the 2023-24 season. Appealed, but since withdrawn following Prem survival.
Sheffield United
Hit with a two-point deduction for their finances during the 2022-23 EFL season. Will begin the 2024-25 Championship season on -2 points following their relegation from the Prem.
OTHERS WHO COULD FACE PUNISHMENT…
Manchester City
Etihad club emphatically denies the 115 allegations laid against them in February 2023. The lengthy Commission case has been scheduled to start in October or November but a final decision is not expected until March or April 2025.
Chelsea
Blues chiefs flagged up illicit payments made to agents and others during the Roman Abramovich era. Fined £8.6m by Uefa but still to be formally charged by the Prem despite an ongoing investigation.
Leicester
Foxes breached Prem PSR loss limits last season but did not have to report their 2022-23 accounts until this month because of their relegation. That puts the timetable back and means that they will probably face a Prem points deduction for the 2024-25 season following their return to the top flight.
Everton (again)
The Toffees are again at risk of breaking PSR rules and are in a race against time to raise funds and balance the books. Not only could that lead to another charge but also administration. That would lead to an automatic nine-point deduction for the 2024/25 season.
For the Prem, Jane Mulcahy KC said: “It would create perverse incentives for a club that is close to relegation and allow a relegated club to escape all disciplinary consequences.”
The commission rejected Leicester’s submissions and ruled that the regulations did apply to the club and that the League had the right to bring disciplinary proceedings against them.
A Prem spokesman confirmed: “An independent Commission has dismissed a challenge by Leicester City FC that it has no jurisdiction to consider an alleged breach of Profitability and Sustainability Rules (PSRs).
“In March, the Premier League referred the club to the independent Commission for the alleged breach. Leicester City subsequently challenged the Commission’s authority to hear the case.
“The alleged breach relates to the PSRs for Season 2022/23, when the club was a member of the Premier League.”
And that will bring a formal hearing into the matter early in the season – although Leicester announced plans to appeal the decision.
Leicester said: “LCFC notes the publication today of the decision of the Premier League Commission.
“The Club is disappointed with the decision, which does not appear to reflect the wording of the Premier League’s Rules, and has lodged an appeal.”
But the upshot is the expected but worse possible scenario for Cooper and his new side.
If the charge is proven, a separate commission is likely to impose a starting point of four to six points plus plus one point for each £10m over the limit.
And Leicester’s efforts to frustrate the Prem legal team will make any arguments for mitigation over the punishment difficult to sustain.
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