Leicester City will avoid a points deduction this season despite being accused of breaching the Premier League’s Profit and Sustainability (PSR) rules – but they could be punished when they return to the Premier League.
The Premier League’s PSR rules have featured heavily in the media this season amid a crackdown on financial fair play breaches, with the likes of Everton, Nottingham and the latest is Sheffield United’s point deduction. Notably, Everton even had points deducted twice and may receive another penalty. However, although Leicester were also accused of breaking the rules, they will not be docked points this season due to legal restrictions.
After being accused of violations last month, Leicester’s Board of Directors sued the operator of the Premier League and the English Football League EFL system by claiming that It is illegal to deduct points in the English First Division for their offenses in the Premier League. After legal recourse, the EFL have now agreed that regulatory restrictions will not allow them to deduct points from the Championship leaders.
In a newly released statement, the EFL announced: “After taking legal advice, the EFL has confirmed to all parties that we wish to respect any decision of the Premier League disciplinary committee regarding the Point deduction in EFL. Point deduction at EFL has no authority according to the current draft regulations.”
As you know, earlier this month Leicester Club confirmed a loss of £89.7 million in the 2022/23 season, bringing their total losses in the past three seasons, all the money they have spent in the highest league. Foggy land amounted to a total of 215 million pounds. The Premier League allows losses of less than £105m over a three-year period, leading to Leicester breaching PSR rules.
With the EFL’s latest statements, Leicester fans can breathe a sigh of relief as the home team is not deducted points in the English first division and continues the fight for promotion. Currently, the Foxes lead the rankings with 88 points after 42 matches, only ahead of second-place team Ipswich in goal difference and 1 point ahead of third-place team Leeds United. However, in case they continue to secure the leading position and win the right to return to the Premier League next season, Leicester can start with an expected negative score of about 10 to 12 points based on the amount of violation.
However, Leicester still has a way to escape the point deduction if promoted to the Premier League, which is to sell off players immediately after the 2023/24 season ends, in the hope of balancing the books. The current Championship season will end on May 4 while the next accounting period will end on June 30.
