On January 14, 2025, the Premier League announced that no teams had been or would be charged with breaching financial rules during the 2023/24 season.
The Profit and Sustainability (PSR) regulations, which allow teams to incur losses of up to £35 million annually, have been in place for years but gained significant attention during the 2023/24 campaign.
Nottingham Forest and Everton were notably docked four and eight points, respectively, for violating these rules.
The swift punishments sparked criticism, particularly when compared to the ongoing, drawn-out investigation into Manchester City.
Questions were also raised about clubs like Chelsea, who spent heavily despite missing out on European football, escaping scrutiny.
Leicester City also faced financial concerns despite competing in the Championship last season. While no penalties have been issued for financial breaches this time, Leicester remains under the spotlight and may still face repercussions.
Why Leicester Could Still Be Punished for PSR Breaches
Leicester’s accounts for the 2023/24 season are yet to be published, but the club reported substantial losses of approximately £90 million in each of the two previous campaigns.
Although the pandemic contributed to these struggles, other factors have exacerbated Leicester’s financial woes.
Following their historic 2016 Premier League title win, Leicester became consistent contenders for European football, even winning their first FA Cup under Brendan Rodgers in 2021.
However, the lack of European qualification in recent seasons has severely impacted their revenue streams.
To address their financial challenges, Leicester sold key players such as James Maddison, Wesley Fofana, Harvey Barnes, and Timothy Castagne.
Additionally, they argued that the sale of Kiernan Dewsbury-Hall to Chelsea and compensation received for manager Enzo Maresca should be factored into their 2023/24 accounts.
In response to potential PSR breaches, the English Football League placed Leicester under a registration embargo, preventing them from signing players.
The league concluded that Leicester would likely breach the three-year PSR limits ending with the 2023/24 season.
Leicester has maintained that, at the time of the breach, they were no longer a Premier League club, having been relegated and replaced by Luton Town.
The club argues that it should not be held to Premier League rules when competing in the Championship, where financial thresholds are significantly lower.
While the Premier League allows losses of up to £105 million over a three-year period, Championship rules limit losses to £13 million annually, or £83 million over the same timeframe.
Leicester contends that their single season in the Championship should adjust the financial calculations applied to them.
What’s Next for Leicester
Although no teams have been charged for PSR breaches, Leicester’s legal dispute with the Premier League is far from resolved.
The matter remains subject to confidential arbitration, which will determine whether Leicester faces penalties, including potential point deductions, for breaches occurring between 2021 and 2024.
Rob Tanner of The Athletic highlighted the Premier League’s recent statement regarding Leicester’s case:
*”Issues as to the jurisdiction of the Premier League over Leicester City Football Club in relation to PSR compliance are currently the subject of confidential arbitration proceedings.
“Accordingly, neither the league nor the club will make any further comment at this stage about any aspect of the club’s compliance or otherwise with any of the PSR or related rules, save to say that no complaint has been brought against Leicester by the league for any breach of the PSRs for the period ending season 2023-24.”*
For now, the resolution of Leicester’s financial compliance remains uncertain, with the club awaiting the outcome of ongoing arbitration proceedings.
