Leicester City are bracing themselves for a tense wait to discover whether they will be handed a points deduction following their alleged profit and sustainability (PSR) breach.
Leicester were first charged with a spending violation in March 2024 after posting losses of £90million for 2022-23, with Premier League clubs only allowed to lose £105m across a rolling three-year window.
It has now been confirmed the Foxes will not face any sanction for their 2022-23 issue after taking advantage of a loophole in the regulations.
However, Leicester were then charged in May with a further alleged breach of the EFL’s financial rules for 2023-24 – the season in which they earned promotion back to the Premier League.
The Telegraph reported on 18 November that Leicester’s case is expected to be heard this week, with the club set to fight three charges.
Leicester tipped to face a six-point deduction:
Former Man City financial adviser Stefan Borson told Football Insider exclusively that Leicester are likely to be hit with a six-point deduction if a punishment is imposed in line with Premier League guidelines.
Everton have previously received two- and six-point penalties for separate infringements, while Nottingham Forest were deducted four points.
Speaking exclusively to Football Insider, Borson said:
“The question is, on what basis does the Premier League assess the points? Does it say we are looking at it from a Premier League perspective? Or does it say we’re looking at it from an EFL perspective? Does it rank it in terms of the penalty on the EFL rules or does it rank it on the Premier League rules?
“Now, it’s quite hard to know what the answer is to that. I think they do it on the Premier League rules and, therefore, the Premier League penalties. But of course, that is different if they do it on the EFL rules because the EFL rules have different tariffs for breaches.
“Clearly, if they do it on the Premier League rules, then I think it’s three plus three in terms of the penalty before mitigation. And if they do it on the EFL rules, then it could be more, so we’ll just have to see.”
It is expected Leicester will concede a breach of the PSR framework following their previous financial troubles.
Leicester could suffer a 12-point deduction under one scenario:
Although Leicester’s losses dropped from £90m to £19m in 2023-24, the reduction wasn’t significant enough to stop them being charged under PSR rules.
Borson believes the Foxes will most likely receive a six-point punishment, but he warned that a 12-point hit remains possible should the decision fall under EFL guidelines.
“The way it’s not clear from the Premier League’s announcement as to how it works because it says it’s been referred for alleged breaches of the EFL Championship and profitability rules, but it’s taken over by the Premier League’s independent commission,” Borson explained.
“I don’t know. I think six. Clearly, if it’s EFL rules, then the tariffs that are in place and the guidance that are in place from the EFL will give it more points. It could be nine or 12.”
Leicester currently sit 10th in the Championship standings under Marti Cifuentes, but a points deduction could soon become a reality depending on the outcome of their upcoming hearing.