‘Leicester City to land eight-point deduction’ – Stefan Borson
Leicester City are likely to land a significant points deduction after being charged with a profit and sustainability (PSR) breach.
The Foxes were initially charged in March 2024 with a spending breach after reporting losses of £90million for 2022-23, with top-flight sides only permitted to lose £105million over a rolling three-year period.
However, it has been confirmed they will not face any punishment for their 2022-23 breach after exploiting a loophole in the rules.
Leicester have now been charged with an alleged breach of the EFL’s financial rules for 2023-24 when they secured promotion back to the Premier League.
The Foxes have been referred to an independent commission, leaving them facing a potential points deduction following their relegation to the Championship.
Everton previously received two and six-point penalties following their breaches, while Nottingham Forest were deducted four points.
Finance expert Stefan Borson exclusively told Football Insider Leicester could face an eight-point deduction if the case goes to a hearing.
Borson previously told Football Insider Leicester could look to reach a settlement agreement with the Premier League.
The Foxes suffered a £72million hit in 2023-24 after their turnover fell from £177million in 2022-23 to £105million, while their losses dropped from £90million to £19million across the same period.
Leicester unlikely to face 12-point deduction
Borson insisted Leicester are unlikely to land a 12-point deduction following their alleged breaches.
He told Football Insider: “Let’s work on the assumption just for the sake of discussion they’re £30million over the limit.
“You would think that the way that would be calculated would be in line with Nottingham Forest, where they said effectively a serious breach is a three points base and let’s say three, four or five points on top of the three points for the scale of the breach, and then you start to look at mitigation.
“Now, I’ve seen people talk about a 12-point penalty if it goes to a full hearing.
“I don’t see that because within the Nottingham Forest case, it seemed to be that there was an acceptance generally that nine points is pretty much the most serious thing that can happen if you go into insolvency in a season, so that’s the worst thing you can do is nine points.
“Therefore, eight points should be the cap for a normal PSR breach. The problem that Leicester will have is that if you look at what happened with Nottingham Forest, they got two points back for cooperation and early admission.
“Leicester are unlikely to be able to argue that they should get two points back for mitigation, so they could be stuck with more towards the eight-point level if it goes to a hearing.”
Russell Martin reaches full agreement with Leicester
Football Insider revealed on 26 May Leicester have reached a full agreement with Russell Martin to become the club’s new manager.
The 39-year-old is finalising contracts at the King Power Stadium after the 2024-25 campaign has come to an end.
| Games | 73 |
| Wins | 34 |
| Draws | 13 |
| Losses | 26 |
| Win rate (%) | 46.6 |
Martin is expected to be announced as the successor to Ruud van Nistelrooy in the coming days as Leicester prepare for a return to the Championship.
Football Insider exclusively revealed on 20 May Leicester have decided to sack Van Nistelrooy following their relegation from the Premier League.
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