Leeds United’s promotion rivals Leicester City are facing a looming breach of profit and sustainability rules, regardless of whether they find themselves in the Premier League or the Championship next season.
The Whites have been frustrated of late with news emerging from the Premier League that the two sides that finished just outside the bottom three have been found in breach of PSR – facing points deductions as a result. Now, it appears their Championship counterparts, Leicester City, are on a similar trajectory.
The EFL released a statement last week indicating that they have been investigating Leicester’s finances this season. According to projections from an independent panel, the Foxes are expected to breach PSR.
The statement outlines that Leicester will need to produce evidence of how they intend to correct their finances soon to avoid being in breach. However, the club argued that the budget plan in question isn’t required until April and therefore should not be pursued on the matter just yet.
Leicester’s financial scrutiny extends to two previous years in the Premier League and the ongoing year in the EFL, where permitted losses differ between the divisions, amounting to a three-year total of £83 million (£35m in PL, £13m in EFL). Being found guilty on such counts could result in a points deduction, irrespective of the division they end up in.
Frustratingly for Leeds, any potential sanction imposed on the Foxes would not take effect this season, even if the EFL is exerting pressure to expedite charges. Phil Hay from The Athletic discussed the potential implications for Leeds in the promotion race on The Square Ball podcast, shedding light on the situation:
“Obviously in the background for Leicester as well there’s the PSR aspect and what the breaches we assume they’ve made of the financial limits are going to mean for them. I think there is a will on the EFL’s part to try and impose something before the end of the season but the timeframe seems too short, it seems inconceivable that anything could happen before the beginning of May. If there is going to be any punishment for Leicester, it’s probably going to run beyond then, and beyond the season’s conclusion.”
The fact that Leicester might be playing Premier League football next season while facing potential sanctions is a bitter pill to swallow.
This situation not only affects Leeds but also Ipswich and Southampton, who have all adhered to financial constraints while competing for promotion. A points deduction for Leicester next season appears inevitable, setting them up in a precarious position, regardless of their division.