Exclusive: Leicester get big points deduction boost after £20m reveal
Leicester City are not expected to be charged with a profit and sustainability (PSR) breach for last season following their points deduction, sources have told Football Insider.
Leicester were charged last May with an alleged breach of the EFL’s financial rules in their promotion-winning campaign back to the Premier League in 2023-24.
Following a hearing in November, it was announced on Thursday (5 February) Leicester have been deducted six points.
The penalty has been applied immediately, leaving the Foxes sitting 20th in the Championship table and only outside of the relegation zone on goal difference.
In a statement, Leicester said the points deduction is “disproportionate” and they are now considering their available options.
How Leicester avoided financial breach last season
The Premier League’s PSR rules allow clubs to lose £105million over a rolling three-year period, but the figure is reduced by £22m each season a club spends outside of the top flight.
That meant Leicester’s cap was £83m up to the end of 2023-24, having spent that campaign in the Championship.
The Foxes lost £92.5m in 2021-22, £89.7m in 2022-23 and £19.4m in 2023-24, but those figures don’t account for certain costs clubs are allowed to add back.
Leicester successfully argued their case should be considered over a 36-month period rather than 37 after moving their accounting reference date to 30 June in 2023-24.
The commission ruled the East Midlands club had spent £20.8m over their limit across the three-year period, but it would have been higher had the case been assessed over 37 months.
Sources have told Football Insider Leicester’s breach could have been closer to £40m in that instance, impacting their 2023-24 figures as well as last season’s accounts.
However, it is believed the Foxes avoided breaching the spending rules for 2024-25 after reducing their losses at the King Power Stadium.
Leicester have new focus as PSR saga comes to an end
In an interview last week, Leicester owner Aiyawatt ‘Top’ Srivaddhanaprabha admitted he was “worried” about the club’s PSR situation.
While the Foxes must decide whether to appeal against the points deduction, they do now have a chance to move forward.
Leicester are looking to appoint a new manager after sacking Marti Cifuentes last month.
Andy King has taken over on an interim basis as he aims to help the club move away from the relegation zone before a new manager is appointed.
The Foxes are set to take on Birmingham City at St Andrew’s on Saturday (7 February).
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