Leicester City faces the looming threat of severe punishment if they secure promotion to the Premier League, with reports indicating that a points deduction is imminent.
The club’s financial troubles have been thrust into the spotlight following the release of their latest accounts, revealing pre-tax losses of £89.7 million. This figure, combined with deficits of £92.5 million and £31.2 million in 2022 and 2021 respectively, exceeds the three-year permitted maximum of £105 million.
Charged by the Premier League for an alleged breach of profitability and sustainability rules (PSR) last month, Leicester’s case has been referred to an independent commission for review. The significant financial losses virtually guarantee a breach, and reports from Football Insider suggest that a points deduction is highly likely next season.
While a deduction this season seems improbable with only one month and seven remaining games – six for Leeds United – the scenario could drastically change upon promotion to the Premier League, potentially starting the Foxes on negative points. Such a penalty could inadvertently aid other promotion contenders, particularly if they are also promoted, bolstering their chances of survival in the top flight.
Recent reports indicate that some Championship clubs are pushing for punishment to be meted out this season, arguing that Leicester’s spending over the past three years has provided them with an unfair advantage in the promotion race.
The English Football League (EFL) has already imposed a transfer embargo on Leicester. However, key signings such as Wout Faes, Jannik Vestergaard, and Patson Daka were secured during the period under scrutiny. Additionally, Leicester boasted the highest wage bill outside the Premier League’s ‘big six’ last season, with no apparent relegation-related wage reduction clauses in player contracts.
Currently positioned third in the Championship, Leicester trails Leeds by a point and Ipswich Town by two. With a game in hand, they have an opportunity to close the gap during a crucial stage of the season.
The upcoming weekend promises significant fixtures in the promotion race, including Ipswich’s clash with fierce rivals Norwich City and Leeds and Leicester facing Coventry City and Birmingham City respectively. Southampton, also in contention, will face Blackburn Rovers in their pursuit of promotion.