Leicester City Charged Over Fresh Financial Breach
Leicester City has been charged with an alleged breach of the Premier League’s Profit and Sustainability Rules (PSR) for the 2023-24 financial year, during which the club competed in the Championship.
The charge follows a tribunal decision confirming the Premier League’s jurisdiction over the matter, despite Leicester’s relegation.
The club now faces the possibility of a points deduction, though any punishment would likely apply to the 2025–26 Championship season.
An independent commission will assess the case, which also includes two further allegations: failure to submit accounts to the Premier League by the December 31, 2024 deadline and failure to fully cooperate with league inquiries.
Leicester’s recent financial records show consistent losses: £92.5 million in 2021–22, £89.7 million in 2022–23, and £19.4 million in 2023–24.
These figures raise red flags under PSR guidelines, which limit losses to £105 million over three years — a cap adjusted downward for time spent outside the Premier League.
This is the second PSR-related charge Leicester has faced. In 2024, they successfully argued that the Premier League had no authority to prosecute them for the 2022–23 period since they were relegated when the accounting year ended.
However, the new tribunal decision has reversed that interpretation for future cases, affirming the league’s right to act regardless of a club’s division.
Football finance expert Kieran Maguire says while the Premier League can enforce its rules, penalties such as points deductions may not be implemented while Leicester remains in the EFL due to the separate governance structures.
However, he notes the EFL could also bring a separate case if Leicester breaches its own financial thresholds, which are set lower than those of the Premier League.
Despite making nearly £75 million in player sales in 2022–23, Leicester’s spending and mismanagement — including costly managerial changes, inflated contracts, and losses from missing European competition — have left the club financially vulnerable.
This has impacted their ability to rebuild, with new manager Ruud van Nistelrooy working with a limited transfer budget.
Leicester has stated it will cooperate with the Premier League now that jurisdiction has been confirmed, and awaits the outcome of the commission’s investigation.
Leicester City Charged Over Fresh Financial Breach