Leicester City may be staring at a potential 12-point penalty following their alleged profit and sustainability (PSR) violation, sources have informed Football Insider.
Leicester were first hit with a spending charge in March 2024 after announcing losses of £90million for 2022-23, with top-flight clubs only allowed to lose £105m across a rolling three-year spell.
It has since been confirmed the Foxes will not face any sanctions for their 2022-23 breach after taking advantage of a loophole in the regulations.
However, Leicester were accused in May of a further breach of the EFL’s financial guidelines for 2023-24 – the season in which they earned promotion back to the Premier League.
The Telegraph reported on Tuesday (18 November) that Leicester’s case is scheduled to be heard next week, where they will contest three charges.
What is the most probable points deduction for Leicester?
Leicester’s potential punishment is still uncertain if they are found to have violated the spending rules.
Everton previously received two and six-point deductions following two different breaches, while Nottingham Forest were docked four points.
The crucial aspect revolves around whether any forthcoming sanction is applied under Premier League or EFL regulations.
The Premier League rules would likely bring a six-point deduction, but a penalty under EFL rules could reach up to 12 points.
Sources have told Football Insider that a six-point punishment seems the most plausible outcome if Leicester are found culpable, considering the case was referred to an independent commission by the Premier League.
Leicester could suffer another points deduction setback:
Leicester have struggled with PSR complications since their initial relegation from the Premier League in the 2022-23 campaign.
The Foxes’ latest published financials for 2023-24 showed their turnover dropped from £177m in 2022-23 to £105m after slipping out of the top flight.
Although their losses fell from £90m to £19m in 2023-24, it still wasn’t enough to stop them being charged with a PSR infringement.
Leicester’s spending threshold for the three-year cycle up to that season was £83m as the cap decreases from £35m annually in the Premier League to £13m in the Championship.
Former boss Enzo Maresca guided the East Midlands outfit back to the Premier League at the first try, but a disastrous season under Steve Cooper and Ruud van Nistelrooy saw them relegated to the second tier once again last term.
Football Insider revealed in May that Leicester were close to another PSR breach for 2024-25 due to their long-running financial issues.
The Foxes are currently positioned 12th in the Championship table under Marti Cifuentes, but a points deduction could soon loom large depending on the result of their incoming hearing.