Leicester City has been charged by the Premier League with three alleged breaches of financial regulations during the 2023/24 season, a period when the club competed in the Championship. These charges have been referred to an independent commission, and if the club is found guilty, it could face sanctions, including a potential points deduction in the upcoming 2025/26 Championship season
Details of the Charges
The Premier League has outlined three specific allegations against Leicester City:
- Exceeding Permitted Financial Losses: The club is accused of breaching the EFL’s Profitability and Sustainability Rules (PSR) by surpassing the allowable financial losses for the assessment period ending in the 2023/24 season. Under PSR, clubs are restricted to a maximum loss of £83 million over a three-year period if they have spent time outside the Premier League. Leicester’s financial records indicate a loss of £19.4 million for the 2023/24 season, following losses of £89.7 million in 2022/23 and £92.5 million in 2021/22 .
- Failure to Submit Annual Accounts: Leicester allegedly did not provide their annual financial accounts to the Premier League by the stipulated deadline of December 31, 2024.
- Lack of Cooperation: The club is also accused of not offering full, complete, and prompt assistance to the Premier League during its inquiries into the financial matters
- Jurisdiction and Previous Proceedings
- Previously, Leicester faced similar charges for the 2022/23 season. However, an independent appeal board ruled that the Premier League lacked jurisdiction to sanction the club for that period, as Leicester was a member of the EFL when the financial year concluded. While the Premier League contested this decision, a tribunal upheld the appeal board’s ruling, stating it was not a “perverse interpretation of the law.” In response, the Premier League has since amended its regulations to ensure jurisdiction over clubs regardless of their league status at the time of the alleged breaches .
Potential Implications
If the independent commission finds Leicester City guilty of these charges, the club could face several sanctions, including:BBC
- Points Deduction: A reduction in points for the upcoming Championship season, which could impact their promotion aspirations.
- Fines: Monetary penalties imposed by the governing bodies.
- Transfer Restrictions: Limitations on player registrations or transfer activities.
The exact nature and severity of the sanctions will depend on the findings of the independent commission. Leicester City has stated its intention to cooperate fully with the ongoing investigation .
This situation underscores the importance of financial compliance in football and the increasing scrutiny clubs face regarding their financial operations.
Jurisdiction and Previous Proceedings
Previously, Leicester faced similar charges for the 2022/23 season. However, an independent appeal board ruled that the Premier League lacked jurisdiction to sanction the club for that period, as Leicester was a member of the EFL when the financial year concluded. While the Premier League contested this decision, a tribunal upheld the appeal board’s ruling, stating it was not a “perverse interpretation of the law.” In response, the Premier League has since amended its regulations to ensure jurisdiction over clubs regardless of their league status at the time of the alleged breaches
Leicester City FC released a statement in response to the Premier League’s announcement and the tribunal’s decision on Tuesday, May 20, 2025. Here’s the key excerpt from the club’s official statement:
“Leicester City FC notes the tribunal decision which has been published today (Tuesday May 20, 2025). The club is extremely disappointed with this outcome and maintains that it has operated in compliance with the applicable rules.”
They went on to state:
“We believe the charges are unjustified and will continue to strongly contest them, including by way of appeal. The club will cooperate fully with all procedures moving forward, as it has done throughout.”
This signals that Leicester is prepared to continue defending itself, potentially through legal means or further appeals to an independent commission. The club also reiterated its position that it acted within the financial regulations and emphasized its commitment to transparency and due process.
Leicester City FC released a statement in response to the Premier League’s announcement and the tribunal’s decision on Tuesday, May 20, 2025. Here’s the key excerpt from the club’s official statement:“Leicester City FC notes the tribunal decision which has been published today (Tuesday May 20, 2025). The club is extremely disappointed with this outcome and maintains that it has operated in compliance with the applicable rules.”
