Leicester City, currently leading the Championship, faces an imminent charge by the Premier League for an alleged breach of financial controls, potentially resulting in a substantial points deduction when they return to the top division.
This delay in the sanction stems from Leicester’s relegation last May, occurring before new rules were introduced at the Premier League’s annual meeting after the previous season’s conclusion.
The 20 clubs, including the newly promoted ones, decided at the meeting that any breaches of profitability and sustainability rules must be addressed within the same season as the relevant accounts are submitted.
If Leicester had remained in the Premier League this season, they would have been required to file their accounts by December 31. However, since they are currently in the Championship, their audited accounts for the 2022-23 season have only recently been submitted.
Had Leicester remained in the top division, they might have faced a charge similar to those imposed on Everton and Nottingham Forest in January within the scope of the 2023-24 season.
The Championship leaders now find themselves in a unique position, potentially facing a significant points deduction recommended by the Premier League, impacting their ongoing season. The case will be heard by an independent commission, adding an extra layer of scrutiny to the situation.
Leicester is not only grappling with Premier League sanctions but also facing potential consequences from the English Football League (EFL). The EFL is currently assessing the financial submissions of its member clubs, and Leicester, with allegations of breaching permitted losses, could face further sanctions. Notably, the club successfully argued against EFL measures being imposed on their finances this season.
Despite the looming financial challenges, manager Enzo Maresca remains focused on the team’s immediate goals, stating before a match against Hull City, “It’s something we don’t like, but we have 10 more games, and that’s the most important thing for us.” Maresca acknowledges the situation is beyond his control, emphasizing the need for the team to concentrate on their upcoming matches.
Leicester is expected to publish their official accounts for the 2022-23 season this month, likely revealing additional losses. In the previous financial year, the club reported record losses of £92.5 million for 2021-22. Regardless of the potential punishment in the event of promotion, Leicester faces pressure to raise funds before the financial year concludes on June 30.
To alleviate financial strain, the club may explore player sales, with midfielder Kiernan Dewsbury-Hall drawing interest from Brighton and Fulham. Additionally, there could be attention on full-back James Justin, a senior England international. Leicester might also seek additional funds through sponsorship deals and potential progress in the FA Cup, with a quarter-final clash against Chelsea looming.
As the Premier League prepares to confirm Leicester’s charge in the coming weeks, the club remains tight-lipped, declining to comment on the unfolding situation. The intricacies of this case underscore the complexities that arise when addressing financial irregularities in football, especially when a club undergoes relegation and subsequent rule changes.