Leicester City could be hit with a points deduction in the future after being charged with an alleged breach of the English Football League’s (EFL) financial regulations.
The club has been referred to an independent commission by the Premier League over an alleged breach of Profit and Sustainability Rules (PSR) for the 2023-24 season, during which the Foxes were competing in the Championship.
The charge follows a protracted arbitration process over which governing body held jurisdiction, due to Leicester’s recent movements between the Premier League and Championship. A tribunal has now ruled that the Premier League does have the authority to pursue the case, despite Leicester’s relegation and confirmed participation in the Championship for the 2025-26 season.
According to the Premier League’s 12-week fast-track process, a verdict on the case could arrive before the start of that campaign, raising the possibility of a points deduction being enforced during their next season in the second tier. However, football finance expert Kieran Maguire told BBC Sport that he believes a sanction during Leicester’s Championship campaign is unlikely, given the separation between the Premier League and the EFL.
The independent commission will also examine two additional alleged breaches by Leicester City: failing to submit their financial accounts to the Premier League by the 31st of December 2024, and not providing full and prompt cooperation during the league’s inquiries.
Under Premier League rules, clubs are prohibited from losing more than £105 million across a three-year period, though this figure is reduced by £22 million for each season spent outside the top flight.
Leicester’s financial situation paints a worrying picture. The club reported a £19.4 million loss for the period ending 30 June 2024. That follows losses of £89.7 million in 2022-23 and a club-record £92.5 million in the 12 months to May 2022. However, these totals exclude so-called “add backs” — costs considered investments in the wider interests of the game, such as infrastructure projects and women’s football.
Despite a £74.8 million profit in player sales during 2022-23, the club has struggled to balance the books. Large player contracts have proven difficult to offload, and their Premier League relegation in 2023 further damaged their financial standing. The drop from eighth to 18th cost them around £30–35 million in prize money alone, with each league position worth approximately £3 million.
The Foxes also missed out on European revenue after previously reaching the semi-finals of the Europa Conference League in 2022, while the departure of Brendan Rodgers and his backroom staff in 2023 incurred further significant costs.
Chief executive Susan Whelan defended the club’s spending during that period, stating that their budgets were “entirely reasonable” based on previous top-five finishes. However, the financial impact continues to bite. Manager Ruud van Nistelrooy had only £3 million available for new signings in January, bringing in defender Woyo Coulibaly — a modest investment that left the squad short of the quality needed to avoid the drop.
Leicester City said in a statement: “The club intends to engage co-operatively in this matter now that the Premier League’s jurisdiction has been established for the period ending FY24.”
The case is being closely watched after recent PSR breaches saw Everton and Nottingham Forest punished. Everton were docked two points in April 2024 following a £16.6 million breach, having previously had a 10-point penalty (later reduced to six) for a 2021-22 breach. Forest received a four-point deduction in March 2024.
With the financial spotlight firmly on Leicester, the coming months will be critical in determining the extent of the consequences the club may face.