Stefan Borson

Sun 6 April 2025 11:56, UK

Leicester City’s financial situation has been firmly in the spotlight over the past couple of seasons following their ongoing legal battle with the Premier League. 

Despite being charged by the Premier League for breaching the profit and sustainability rules (PSR) in 2022-23, Leicester avoided a points deduction after exploiting a loophole in the rules.

However, that case is still ongoing as the two parties remain in arbitration following the club’s breach.

Leicester’s accounts for 2023-24 revealed their losses fell from £90million in 2022-23 to £19million last season, with top-flight clubs permitted to lose £105million over a three-year period.

Finance expert Stefan Borson exclusively told Football Insider the club appear to be £100million over the spending limit after a senior source confirmed their limit would have been £83million last season following their relegation to the Championship. 

Leicester’s revenue fell by £72million last season from £177million in 2022-23 to £105million.

That was driven by a £61million drop in broadcast revenue, which fell from £115million to £54million in 2023-24 as a result of their relegation. 

Matchday income at the King Power Stadium remained static at £18million, while commercial revenue fell from £44million to £33million. 

Leicester set for PSR update after Premier League hearing

Borson suggested an update on Leicester’s PSR position for 2023-24 could emerge after their ongoing arbitration case with the Premier League is concluded.

He told Football Insider: “The league have said that nobody failed 2023-24.

“They were a little bit funny about Leicester because we know that they’ve got this appeal going on for the 2022-23 situation.

“If you take their numbers and stick them into a PSR calculator, it looks like they failed by quite a long way for 2023-24, certainly on my numbers.

“They definitely wouldn’t have got to an £83million cap. Now, because of the way the rules are drafted, there are some questions as to whether their cap was £83million or £105million on the PSR test. 

“I’ve been told by senior sources that the cap is £83million for a club that’s just been promoted. That seems unlikely to me to be honest, but the confirmation came from somebody that should know. It does seem unlikely because if it is £83million, I can’t see how they passed it.

“They seem way short, over £100million of losses even after allowances as far as I can tell on the three years, especially because we know where they were for 2022-23 because we got that from the release of the details of the case that they won, so I’m not sure really.

“There is nothing in the accounts that suggests that there’s a write-off of something or some other accounting point that got them around the rules. It doesn’t look like that at all, so I don’t know. 

“I think they were very close to failing or have failed and maybe something will come out either way depending on what happens with this case that they’ve got ongoing related to 2022-23.” 

Leicester face investigation after new twist

Leicester and Everton are facing an investigation after accusations have emerged around advertisements for their gambling sponsors.

An anti-gambling body has accused the Premier League clubs of breaching the Gambling Commission’s demands by advertising gambling firms, which are now unlicensed in the UK but whose controls against UK customers using the sites are easily bypassed.

The Coalition to End Gambling Ads has written to Leicester and Everton, who display BC.Game and Stake.com’s logos on the front of their shirts, and urged the Gambling Commission to take action against them.

Premier League sides will no longer be able to sign up to front-of-shirt sponsorships with gambling firms from the 2026-27 season after they collectively agreed to withdraw from such deals.

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