NafisaLeicester City could face a major blow in their bid to return to the Premier League due to their violation of Premier League financial regulations.
Leicester were demoted to the Championship in 19th place in the Premier League at the close of the 2024-25 campaign, and have been strongly associated with Russell Martin as a successor to outgoing manager Ruud Van Nistelrooy, although his hiring hasn’t been officially announced.
But Martin might be facing a tough challenge in trying to lead Leicester back to the Premier League due to the club’s past financial mismanagement.
Leicester may be hit with at least a 12-point deduction next season:
The Independent’s Matt Hughes has revealed that Leicester could suffer a minimum 12-point penalty in the Championship next season if found guilty of violating Profitability and Sustainability Rules (PSR).
The allegations relate to an alleged overspend of over £17 million across the three-year reporting span from 2021 to 2024, with the situation complicated by Leicester’s involvement in both the Premier League and the EFL during that timeframe.
Current EFL guidelines specify that 12 points are deducted for a PSR infraction, with smaller deductions used on a sliding scale if the breach is under £15m.
But as this alleged breach exceeds that figure, a lighter penalty seems improbable, although clubs have previously succeeded in reducing point deductions through appeal. Leicester themselves won such an appeal only last year.
And the situation could deteriorate further.
The Premier League are also pushing for a harsher penalty than this, as Leicester have additionally been accused of failing to submit their annual financial statements to the Premier League by the deadline of 31st December 2024, and of not offering thorough, accurate and timely cooperation with their investigation.
Twelve points might turn out to be the bare minimum Leicester lose.
Russell Martin has the background Leicester require, but a 12-point deduction could be discouraging:
Such a penalty could heavily affect Leicester as they aim to recover from a dismal Premier League campaign.
Russell Martin has been the frontrunner to become the club’s next head coach, but if a deal is finalized with the former Southampton manager, he might start at a serious disadvantage when compared to other promotion-chasing sides.
Martin has prior success in returning clubs to the Premier League. He was at the helm at Southampton during the 2023/24 campaign, overseeing a 25-game unbeaten streak from September to February, and ultimately led them back up through the play-offs after defeating Leeds United in the final at Wembley.
However, with no formal confirmation yet, supporters will worry that this ongoing uncertainty could impact his willingness to take the job. Leicester City’s summer may be about to become significantly more challenging.
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