Leicester City have received ‘very good news’ after points deduction reduced
Leicester City have received some clarity in their profit and sustainability (PSR) saga after a decision has been made.
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 5 February Leicester have been deducted six points.
The penalty was applied immediately, leaving the Foxes now sitting 21st 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 considering their available options.
How Leicester avoided 12-point deduction as decision analysed
Former Man City financial adviser Stefan Borson exclusively told Football Insider the points deduction could have been “a lot worse” for Leicester.
The commission ruled the Foxes had spent £20.8million over their £83m losses limit between 2021-22 and 2023-24.
Speaking exclusively to Football Insider, Borson said: “I think overall it could have been a lot worse for Leicester. The Premier League did start at 12 points before the various adjustments, so six points on that basis is a good result, and I think it probably allows them to now draw a line under it.
“If you read their announcement, they seem to suggest that they’re now clear of 2024-25. Another nuance within the decision was in respect of whether you take 36 months or 37 months for the period to be assessed. It’s quite nuanced, but it’s to do with Leicester changing their accounting date.
“The interesting thing there was that if it had been established that the right number was 37 months, which is what the Premier League asked for, actually the miss would have gone from £20.8m to over £40m, so it would have made a really big difference. It would have had a knock-on effect for 2024-25.”
Why Leicester are now clear of PSR issues
Borson insisted it’s “very good news” for Leicester that their PSR issues now appear to be behind them.
“It seems from Leicester’s announcement that they are now clear on 2024-25, and that’s certainly the impression given generally,” said Borson.
“That is very good news of course because they probably can’t afford to lose any more points, just because they’re so poor on the pitch at the moment.”
Meanwhile, Leicester are looking to appoint a new manager after sacking Marti Cifuentes at the King Power Stadium last month.
Andy King has taken over on an interim basis, but he is not expected to land the job permanently.
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