Leicester in new points deduction drama as decision due this week – expert
Leicester City are in a “tricky spot” and could face another Profit and Sustainability Rules (PSR) breach if they can’t replace sponsor BC.GAME.
That is the view of finance expert Stefan Borson, who exclusively told Football Insider that the online bookmaker going bust would “definitely” have an impact on the club’s finances.
According to Next.io (2 December), the Curaçao gambling regulator will announce on Friday (6 December) whether or not it intends to revoke BC.GAME’s licence.
The company, which has shut its UK operation, had been declared bankrupt by the Caribbean nation amid unpaid player claims.
It has been widely reported that Leicester’s deal with BC.GAME is worth £30million over two years.
The club released a statement last month (21 November), saying: “BC.GAME have further assured us that they have no issues with liquidity and that they remain fully committed to meeting their ongoing contractual and financial obligations, including to the club”.
Leicester likely in hot water with PSR rules this season, says Borson
Leicester have already breached PSR rules on one occasion but look to have avoided a points deduction after exploiting a clever loophole for the 2022-23 financial year.
However, Borson told Football Insider: “They’ve got likely PSR problems for this year.
“Leicester have just sacked and replaced a manager, which won’t help.
“Now there’s the situation with BC.GAME, which is unclear, but could definitely have an impact on their profit and loss and the PSR calculation.
“It’s not clear whether you’d be able to claim that the insolvency of a sponsor was ordinary business.
“That would be the ultimate test of mitigation in front of an independent commission. Would they get any leeway even if they can’t replace that sponsor?
“They’re in a tricky spot, PSR-wise.
“They’ve got to work through it.”
In other news, Evan Ferguson to Leicester latest.
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