Leicester City, the club of Bangladesh national team midfielder Hamza Choudhury, have been docked six points by the English Football League (EFL) for breaching financial regulations, a decision that has intensified fears of relegation from the Championship.
The penalty took immediate effect, dropping Leicester from 17th to 20th in the table. The former Premier League champions remain outside the relegation zone only on goal difference, leaving their Championship status under serious threat.
The sanction follows an independent commission’s finding that Leicester breached the Profit and Sustainability Rules (PSR) threshold over the three-year period up to the 2023–24 season. The Premier League had originally brought the case against the club in May last year, but responsibility for the proceedings passed to the EFL after Leicester were relegated from the top flight.
During the three seasons from 2021–22 to 2023–24, Leicester reportedly recorded losses exceeding £200 million. The commission found that the club exceeded the permitted PSR limit by close to £21 million during the relevant assessment period.
Under PSR regulations, Premier League clubs are allowed to incur losses of up to £105 million across three years. However, this allowance is reduced by £22 million for each season a club spends outside the top flight. Financial figures up to 30 June 2024 show Leicester recorded losses of £19.4 million, following far heavier deficits in previous years, including £89.7 million in 2022–23 and a club-record £92.5 million in the 12 months up to May 2022.
Some costs, such as investment in infrastructure projects and women’s football, are treated as allowable “add-backs” under league rules and are not included in PSR calculations.
In a strongly worded statement, Leicester said they were “disappointed” with the ruling and labelled the punishment “disproportionate”. The club argued that mitigating factors were not properly reflected in the final decision.
“The unprecedented level of sanction sought by the Premier League was significantly reduced following the commission’s review,” the statement said. “However, the recommendation remains disproportionate and does not adequately reflect the matters we presented. Given the potential impact on our objectives this season, these issues are extremely important.”
Leicester added that they are reviewing the full ruling and considering their options, while remaining committed to constructive dialogue to ensure any outcome is fair, proportionate and reached through due process.
On the pitch, the timing of the decision could hardly be worse. Leicester are winless in their last four Championship matches and are without a permanent manager following the dismissal of Martí Cifuentes in January. The club’s recent struggles stand in stark contrast to their remarkable rise over the past decade, which included winning the Premier League in the 2015–16 season and lifting the FA Cup for the first time in 2021.
The situation is compounded by injury concerns surrounding Hamza Choudhury. The midfielder picked up a knee injury against Charlton Athletic last Saturday, with interim manager Andy King confirming that scans are required. Hamza could be sidelined for six to eight weeks, depriving Leicester of a key figure during a critical phase of the season.
