Leicester City finds itself under scrutiny regarding adherence to the Premier League’s Profit and Sustainability regulations, with recent developments raising concerns.
Currently leading the Championship, Leicester City is in a strong position to secure promotion to the Premier League, holding a three-point lead at the summit and a five-point advantage over the third-placed team, with 11 games left in the season. Their next match is against Sunderland on Tuesday night, offering them a chance to widen the gap further.
However, reports have emerged suggesting the club may have violated financial regulations. Allegations from clubs in both the Premier League and Championship suggest Leicester City may have breached the permitted £105 million loss limit over three years, set by the Premier League, in the last season.
Additionally, there are claims that Leicester City’s losses might exceed the £83 million threshold allowed by the EFL for combined losses. Nevertheless, securing promotion to the Premier League could present a way around these financial constraints.
Here’s a summary of the current understanding of Leicester City’s financial situation:
- Financial Accounts Release: It’s expected that Leicester City’s accounts for the 2022/23 season will be made public by the end of this month. The club reported losses amounting to £125.5 million over the first two years of the three-year assessment period, indicating the need for a £20.5 million profit this season to avoid surpassing the £105 million loss limit.
- Previous Losses: In the three years ending with the 2021-22 season, Leicester City reported losses of £191.5 million. These losses did not constitute a breach of regulations due to COVID-19-related leniency and other exceptions.
- Comparative Cases: Both Everton and Nottingham Forest have faced charges for exceeding the permitted loss limits for the 2022/23 season. An independent committee is set to evaluate and decide on these cases. Previously, Everton received a point deduction for a similar breach, which was later reduced upon appeal.
As Leicester City approaches the season’s climax with hopes of promotion, the financial scrutiny adds an additional layer of challenge to their campaign.
