10 years ago, Leicester were Premier League champions. Now, they sit 21st in the Championship after being docked six points for breaching profit and sustainability rules. The Foxes’ fall over the la...
10 years ago, Leicester were Premier League champions. Now, they sit 21st in the Championship after being docked six points for breaching profit and sustainability rules.
The Foxes’ fall over the last decade has been huge, but how exactly has it happened?
In a statement confirming their points deduction, the Premier League said: “An independent Commission has recommended that an immediate six-point deduction be imposed on Leicester City FC in the Championship, having found them to be in breach of the EFL Profit and Sustainability Rules (P&S Rules) for Season 2023/24.”
Profit and sustainability rules state that a club is only allowed to lose £105 million over a rolling three-year period.
Leicester City were charged with breaching the rules in the three seasons leading up to the end of 2023/24. Leicester lost £92 million in 2021/22, lost £89 million in 2022/23, and lost £19 million in 2023/24.
In 2023/24, Leicester were in the Championship, where the loss limit drops by £22 million from the original £105 million every year you are out of the top flight. Therefore, Leicester were charged with breaching their limit of £83m because they spent a season in the Championship.
They breached that £83 million by just over £20 million and are also said to have failed to provide accounts for the year ending in the 2023/24 season at the correct time.
The commission initially recommended a seven-point deduction, however this was reduced to six as Leicester’s finances were moving in the right direction. Between the end of 2022/23 and 2023/24, their losses decreased by £70 million.
“It is with disappointment that Leicester City acknowledges the Independent Commission’s decision and the club will use the time available to consider its next steps,” Leicester City said in response to the points deduction.
“While the commission’s findings significantly reduced the unprecedented scale of the sanction originally sought by the Premier League, the recommendation remains disproportionate and does not adequately reflect the mitigating factors presented, the importance of which cannot be overstated given the potential impact on our sporting ambitions this season.
“We appreciate the commission’s agreement with the club’s position that compliance for FY24 should be assessed over a 36-month period – an important point both for the period in question, but also in providing the club with certainty on its PSR/P&S compliance for FY25. The panel also agreed there were no aggravating factors which should be applied to the sanction, which is something the club had maintained throughout, and acknowledged the club demonstrated a positive trend in its finances in FY24.
“We are now reviewing the decision in full and considering the options available to us. We remain committed to engaging constructively and ensuring that any action is fair, proportionate and determined through the appropriate processes.”
Although the points deduction was expected, it has come at a really bad time for the Foxes who are currently in poor form and without a manager after sacking Marti Cifuentes last month. Andy King is currently taking charge of the club as interim head coach.
The deduction leaves Leicester outside of the Championship relegation zone only on goal difference, falling from 17th place to 20th. They face 13th-placed Birmingham next, who are currently six league matches unbeaten.
With a tough run of fixtures to follow, the risk of Leicester being relegated to League One is looking more and more likely. If this happens, it will be the first time since 2007/08 that they drop to the third tier of English football.
Category: General Sports
