Leicester City, owned by Aiyawatt Srivaddhanaprabha, is facing the possibility of two separate points deductions from the Premier League this season. The club has been accused of breaking spending rules, specifically the Profit and Sustainability Rules (PSR). The English Football League (EFL) has already conducted an investigation into the alleged breaches during Leicester’s time in the Championship and has handed over its findings to the Premier League.
Leicester City’s situation mirrors that of Everton, who received two points deductions for overspending in successive three-year periods. Although Everton managed to reduce their initial ten-point deduction to six on appeal, they were hit with another two-point penalty for the subsequent period. If Leicester City is charged by the Premier League, they are likely to suffer a similar fate.
The Premier League initially charged Leicester City in March for breaching the £105 million loss limit for the period ending in 2022-23. However, the case was delayed due to the club’s legal challenge. Leicester’s lawyers argue that the Premier League had no right to charge them while they were still in the Championship. The charges against Leicester City are related to their top-flight seasons between 2020 and 2023, during which they incurred a loss of £215.3 million, exceeding the limit by over £110 million.
Furthermore, the EFL has expressed concerns about Leicester City’s finances in the 2023-24 season, leading them to launch an investigation in real-time. The EFL even attempted to impose a business plan on Leicester City but was unsuccessful. Instead, the club was given a transfer ban during the second half of their promotion season, and the matter has now been passed on to the Premier League.
Sources suggest that the Premier League is likely to push for two points deductions for Leicester City. However, unlike Everton and Nottingham Forest, Leicester is unlikely to benefit from any mitigating factors that could reduce the punishment. Everton’s second penalty was reduced from five points to two due to their cooperation, while Forest’s penalty was decreased from eight to six points because of their early guilty plea.
Leicester City’s tactics throughout the case could also work against them. Initially, they cooperated with the Premier League when they were well on their way to winning the Championship. However, as poor results put their promotion at risk, the club sought to delay the proceedings. These factors may impact the ultimate punishment handed down to Leicester City.
Leicester City is set to kick off their Premier League season against Tottenham, led by new manager Steve Cooper. The Premier League has declined to comment on the situation, leaving the club in a state of uncertainty.
Leicester City is not the only club facing the possibility of points deductions. Nottingham Forest has already been deducted four points for breaching the Premier League spending limit, while Everton faced their second deduction and appealed but later withdrew the appeal following their survival in the Premier League. Sheffield United has also been hit with a two-point deduction for their finances during the 2022-23 EFL season.
Other clubs that could face punishment include Manchester City, who strongly denies allegations laid against them and is awaiting a decision from a lengthy commission case, and Chelsea, who have been fined by UEFA for illicit payments but are still under investigation by the Premier League.
In conclusion, Leicester City’s alleged breaches of the PSR rules have put them at risk of two separate points deductions from the Premier League. The outcome of the case remains uncertain, but the club’s tactics and previous precedents suggest that the punishment may not be reduced. As the season kicks off, Leicester City faces a challenging start, both on and off the pitch.