Leicester City are heading into a decisive week as they prepare for an independent commission hearing that will determine whether they will receive a points deduction in the Championship this season.

The case centres on alleged breaches of profit and sustainability rules, with the hearing scheduled to begin later this week. Legal teams for both Leicester and the Premier League are expected to present evidence across roughly two days. While no official timetable has been set for a verdict, those involved hope for a swift conclusion, and Sky Sports News understands that a decision may arrive before Christmas or early in the new year.

If the Premier League-appointed commission rules against Leicester, the EFL will be able to enforce any sporting sanction immediately. This would be the first time a punishment issued by the Premier League could be applied in the Championship, following last year’s rule change that ended the practice of sanctions being served only in the division where the breach occurred.

Leicester successfully argued in 2024 that the Premier League lacked the authority to penalise them after their relegation, as they were no longer competing under Premier League jurisdiction. Although they won that case, the outcome prompted both leagues to amend their regulations to prevent similar challenges in the future.

This time the club faces three separate allegations: exceeding the PSR limit during the 2023–24 season, failing to submit their annual accounts by the December 31 deadline and breaching a rule requiring clubs to provide full and prompt cooperation with Premier League investigations.

Independent analysts believe Leicester’s defence may emphasise that the latter two charges should not apply. They are expected to argue that if the Premier League previously had no jurisdiction over them, they were under no obligation to meet Premier League deadlines or provide information at that time.

However, the situation is complicated. After Leicester’s successful appeal last year, the Premier League took the matter to arbitration, and in May 2025 the panel ruled in the League’s favour, confirming that the Premier League did have the authority to investigate the suspected breach. That ruling paved the way for the three fresh charges Leicester now face.

The scale of any potential punishment remains unclear, as the precise size of Leicester’s alleged financial breach has never been made public. But a deduction of up to nine points is possible—three points for each charge if all are upheld. A breach exceeding £20 million automatically incurs a three-point penalty, with additional deductions likely if the commission agrees Leicester failed to file accounts on time and did not fully cooperate.

Should such a penalty be issued, it is understood that Leicester would lodge an appeal.

Neither Leicester, the EFL nor the Premier League have commented publicly, as all are required to maintain confidentiality while the disciplinary process continues.