Exclusive: Leicester PSR chaos hurts on-pitch plans amid Van Nistelrooy sack update
Leicester are suffering from a “legacy” of poor finances and find themselves in an unusual situation with manager Ruud van Nistelrooy.
According to football finance expert Dan Plumley, who spoke to Football Insider exclusively, the Foxes’ dismal financial position is affecting preparations for next season.
Leicester have been charged for breaching profit and sustainability rules (PSR) during the 2023/24 season.
However, the club’s fate and potential punishment has been up in the air for some time now.
Leicester exploited a loophole and successfully avoided punishment initially, leading to the Premier League changing the wording of their rules around relegated clubs.
But the Foxes have now been referred to an independent commission, and the possibility of a points deduction handed out by the EFL remains a real possibility.
Further complicating issues is the 30 June deadline for the financial end of year, and that date is playing havoc with Leicester‘s attempts to prepare for their return to Championship football.
Ruud van Nistelrooy sack potentially delayed by 30 June deadline
Speaking exclusively to Football Insider, finance expert Plumley explained why Leicester are likely waiting until July to sack Van Nistelrooy, and how that decision will be affecting the club’s on-pitch plans.
“It’s where the finance takes over the on-pitch, doesn’t it? And we’re absolutely in that space, particularly with PSR.
“I think it’s it’s entirely plausible that they could go down that road of waiting until after the deadline, especially if there’s any compensation fee as well, which is another factor because that’s going to mean a pay-out.
“It will then disrupt plans ultimately for the summer because you do want to hit the ground running and that’s something you’ve got to contend with if you’re in financial difficulty.
“This goes back to PSR problems for Leicester from the first relegation, they weren’t thinking they were going to get relegated and then had that bad season and here we are.
“There’s a legacy here with kind of three or four years of poor finances.
“I think ultimately it does disrupt and hurt the plans in the immediate term, but in terms of that squad in the championship for them to compete, they’ll still be in and around that mix of the top clubs in the Championship just because of the players they’ve got.
“That’s the reality of that league as well, barring a disaster, and we saw that with Luton last season, but Leicester should be absolutely fine in the squad they’ve got and competing at the top end of that championship, they’ve got parachute payments as well.
“I guess they’ll have that in the back of their mind that they’ll still be a competitive team in that league, but it’s absolutely feasible, yeah, but you see a lot of clubs kind of waiting out until this 30th of June deadline nowadays just as the PSR implications and yeah, Leicester aren’t the only club that are in that position.”
Leicester set to bank extra £10million-plus with outgoings
Amidst their financial strife, Leicester are set to make £10million worth of savings this summer.
Danny Ward, Daniel Iversen, and Foxes legend Jamie Vardy will all leave when their contracts expire on 30 June.
The departure of those three senior players will slash £10m from the club’s wage bill as they prepare for life back in the Championship.
With Vardy in particular in need of replacing, Leicester are interested in Leeds striker Sam Greenwood, Mick Brown told Football Insider exclusively.