‘Leicester City certain to land points deduction after EFL move’
Leicester City have faced points deduction uncertainty for over a year following their ongoing legal dispute with the Premier League.
Leicester were charged in March 2024 with a breach of the profit and sustainability rules (PSR) for 2022-23 after reporting losses of £90million 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.
However, that case is still ongoing as the two parties remain in arbitration following the club’s breach.
The Premier League has now amended its handbook following a meeting between the 20 top-flight sides last month, closing the loophole Leicester previously exploited.
Leicester suffered a £72million hit last season after their turnover fell from £177million in 2022-23 to £105million, while their losses dropped from £90million to £19million across the same period.
Ruud van Nistelrooy’s side have been relegated to the Championship following their disappointing campaign.
Leicester to face PSR blow after apparent escape
The EFL held an extraordinary meeting on Wednesday (30 April), where changes to its P&S rules were approved.
The EFL will now be able to impose a sanction from the Premier League’s independent commission from next season, ensuring the Leicester situation will not be able to happen again.
Although Leicester could still escape without punishment for their initial breach, they appear almost certain to fall foul of the spending rules eventually.
The club have recorded £119million of losses over the past two years alone, raising questions about how they avoided a charge for 2023-24.
Despite cutting their losses to £19million last season, that was still above the EFL’s spending limit, which currently stands at £13million a year or £39million over the three-year cycle.
Leicester need to keep their losses in check for this season, but that has been an issue for promoted clubs in recent years and their prize money will be limited following their relegation.
Ruud van Nistelrooy sack update emerges at Leicester
In terms of matters on the pitch, Van Nistelrooy is highly unlikely to stay at Leicester next season and manage the club in the Championship.
The 48-year-old has won just three games and lost 18 since taking charge in November at the King Power Stadium.
| Games | 23 |
| Wins | 3 |
| Draws | 2 |
| Losses | 18 |
| Goals (For / Against) | 18 / 53 |
Russell Martin is understood to be in pole position to land the Leicester job after securing promotion to the Premier League with Southampton last season.
Sean Dyche is also in the frame following his previous work at Burnley and Everton.
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