Leicester City are bracing themselves for a crucial decision that will determine whether they are hit with a points deduction for an alleged breach of profit and sustainability (PSR) rules.
The club were first charged in March 2024 after posting losses of £90 million for the 2022-23 season. Premier League rules permit a maximum loss of £105 million across a rolling three-year period. Leicester later avoided punishment for that specific breach after taking advantage of a loophole in the regulations.
However, in May they were charged again — this time for allegedly breaking the EFL’s financial rules during the 2023-24 season, the campaign in which they earned promotion back to the Premier League.
According to The Telegraph, Leicester’s case is scheduled to be heard this week, with the club preparing to contest three separate charges.
Six-point deduction expected
Financial expert and former Manchester City adviser Stefan Borson told Football Insider that a six-point deduction appears the most likely outcome if the Foxes are penalised under Premier League guidelines.
Everton have previously received two separate deductions of two and six points, while Nottingham Forest were handed a four-point penalty for their own breach. Using those precedents, Borson believes Leicester’s punishment will be shaped by whether the commission applies Premier League or EFL frameworks.
He explained: “It’s difficult to know which rules they’ll use. If they follow Premier League guidelines, the structure points towards a three-point deduction for the breach and another three for lack of compliance. If they use EFL tariffs, the sanction could be higher.”
Leicester are expected to accept that they breached PSR limits, given their recent financial struggles.
Possibility of a 12-point penalty
Despite reducing their losses from £90 million to £19 million in 2023-24, Leicester still fell foul of spending rules and must now await their fate.
Borson believes six points is the most realistic outcome, but warned that a 12-point deduction is possible if the independent commission opts to apply EFL rules rather than Premier League ones.
“If it falls under EFL guidelines, the points tariff is different,” he said. “That could push the penalty to nine or even 12 points.”
Leicester currently sit 10th in the Championship under Marti Cifuentes. Depending on this week’s verdict, their promotion hopes could suffer a major setback.