Stefan Borson

Tue 22 April 2025 13:30, UK

Leicester City continue to face points deduction uncertainty following their ongoing legal battle with the Premier League. 

Despite being charged by the Premier League for breaking 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.

The Premier League has now amended its handbook following a meeting between the 20 top-flight clubs earlier this month, closing the loophole Leicester previously exploited.

Under the PSR rules, Premier League clubs are permitted to lose £105million over a rolling three-year period.

However, finance expert Stefan Borson exclusively told Football Insider the latest rule changes have confirmed the limit drops to £13million a season when a club is relegated to the Championship.

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 now seen their relegation to the Championship confirmed following their disappointing campaign. 

Premier League make PSR rule change after Leicester twist

Borson insisted the Premier League has moved to make the PSR rules clearer after Leicester previously exploited a loophole. 

He told Football Insider: “I think it’s quite multifaceted.

“The first thing to say is that it’s an acknowledgement from the Premier League that certain rules relating to Leicester were not clear in essence, which I think is quite an interesting move when they are apparently still in an arbitration appeal to change the rules because that seems to me to be a tacit admission that what was there before was not what they said and completely unambiguous. 

“It seems to suggest to me a level of ambiguity that therefore they needed to change to make clearer, and that also applies in respect of the limits that promoted clubs get.

“It’s a bit technical, but there was a bit of debate as to whether Leicester, because they had yo-yoed, whether actually their cap for 2023-24 was £105million or whether it was £83million, and whether you take the £22million off for last season’s period in the Championship. 

“Looking at the rules as they were drafted earlier this season, it did seem like the cap was the full £105million despite the fact that one of the seasons had been in the Championship.

“What they’ve had to do with the Premier League clubs’ sign-off is they’ve actually had to change that particular rule to make it completely clear that you do get a £22million deduction for every season in the Championship.

“It was drafted in a very strange way before. Again, that’s another area where they’ve had to change the rules to make it clearer, which therefore seems to admit that they weren’t clear enough before.” 

Ruud van Nistelrooy sack update emerges at Leicester

Football Insider revealed on 22 April Van Nistelrooy is highly unlikely to stay at Leicester after their relegation has been confirmed. 

Sources say club chiefs are yet to make a decision on whether the 48-year-old will see out the remainder of this season. 

It is understood Sean Dyche is one of the leading candidates to replace Van Nistelrooy if he moves on from the King Power Stadium.

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