Leicester have breached PSR again as accounts analysed
Leicester City appear to have breached the profit and sustainability rules (PSR) against last season.
That is according to former Manchester City financial adviser Stefan Borson, who exclusively told Football Insider it’s unlikely the Championship club’s allowable deductions will prevent them from avoiding another spending breach.
Leicester have faced several issues complying with the PSR rules over the past few seasons.
The Foxes were handed a six-point deduction in February for breaching the EFL’s financial rules in their promotion-winning campaign back to the Premier League in 2023-24.
However, the East Midlands side have appealed the points deduction, claiming the penalty is “disproportionate”.
How Leicester breached PSR rules last season
Leicester are facing more PSR uncertainty after publishing their latest accounts for last season.
The Foxes’ revenue increased from £105million in 2023-24 to £187m in 2024-25, but their pre-tax losses surged from £19m to £71m across the same period.
| Club | Sanction |
| Everton | -6 points |
| Everton | -2 points |
| Nottingham Forest | -4 points |
| Leicester City | -6 points |
Speaking exclusively to Football Insider, Borson discussed what the latest accounts mean for Leicester, who were permitted to lose £83m over the three-year period up until the end of 2024-25.
“We knew what the adjusted losses were for 2022-23, 2023-24 and now we know what the overall situation is for 2024-25,” said Borson.
“On the face of it, they fail because their cap for 2024-25 when they were a Premier League team was £83m. We know that they went into the season with -£66m, so they could only lose a maximum of let's say £20m in the Premier League.
“The £20m that they could lose was the adjusted loss, including all the allowances. We know that at the operating level, they lost £70m, and I don't think the allowable deductions were £50m.”
Why Leicester's ongoing case will have future implications
Borson insisted Leicester’s allowable losses are unlikely to have reached the required figure to avoid another PSR breach last season.
“The allowable deductions have never been anywhere near £50m before,” said Borson.
“They've only ever been about £20m when you take off women's team, community and depreciation and these things. On the face of it, it looks like they did fail.
“But with Leicester, the one thing to do is to just wait and see because the cases seem to have in the background other implications and other knock-on effects.”
Leicester are on course to be relegated this season, with Gary Rowett’s side currently sitting third bottom in the Championship table.