Leeds United awaits verdict as promotion rivals got charged for alleged financial breach.
According to football finance expert Kieran Maguire, Leicester City is under scrutiny for potentially violating profitability and sustainability rules (PSR) by as much as £30 million.
The club’s recent disclosure of an £89.7 million loss for the 2022/23 season marks their third consecutive year of significant financial setbacks.
Over a three-year span, during which the maximum allowable loss stood at £105 million, the Foxes accumulated a total deficit of £215.3 million.
Consequently, the Premier League has taken action against them for an alleged PSR infringement.
Enzo Maresca’s squad faces the possibility of a points deduction upon their potential return to the Premier League and is currently subject to a transfer embargo imposed by the English Football League (EFL).
Recent reports indicate mounting pressure for swift intervention before the season concludes, with Maguire asserting Leicester’s breach of PSR regulations.
Maguires insight into Leicester City’s alleged PSR breach.
“We don’t have the full details in terms of what’s allowable for the academy and women’s team and so on,” Maguire told Football Insider. “But based on my figures and calculations, I think that Leicester are in the region of £25 to £30 million over the PSR limit.
“What that would mean in terms of a points deduction should they return to the Premier League is unknown. Leicester will argue that because they’re not presently in the Premier League, they shouldn’t be subject to a deduction. I think from a legal point of view, it will be a fascinating commission hearing, assuming that it takes place.“
Possible sanctions for Leicester City.
With less than a month remaining in the Championship season, it appears improbable that Leicester City will face points deduction this season.
However, the likelihood of starting the next season with negative points looms large. Recent precedents include Everton and Nottingham Forest, both penalized for breaches amounting to £19.5 million and £34.5 million, respectively.
Championship clubs express frustration, alleging Leicester’s alleged breach has provided them an unfair sporting advantage this season.
Notably, significant expenditures on players like Wout Faes, Patson Daka, and Jannik Vestergaard over the past three years exacerbate the concerns.
Despite this, the Championship leaders vow to contest the allegations, citing an ‘unexpected decline in sporting achievement’ as a key mitigating factor in their defense.
