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Leicester City have been charged by the Premier League for alleged financial breaches in the 2023/24 campaign.

The case, which will be heard by an independent commission, relates to the club allegedly breaking profitability and sustainability rules (PSR) when they were in the Championship last season.

In their most recent accounts, Leicester made a post-tax loss of UK£18.9 million (US$25.3 million) for the 2023/24 campaign. The year before saw the club make a much larger post-tax loss of UK£89.7 million (US$120.2 million), while the 2021/22 season saw the Foxes declare a post-tax loss of UK£92.5 million (US$123.9 million).

The Premier League permits clubs to make a loss of no greater than UK£105 million (US$140.8 million) over three seasons. If found guilty, the Foxes, who will play in the second tier again next term following relegation, could be handed a points deduction.

It means the Midlands club are now involved in another legal battle with the Premier League, having earlier this season won an appeal that prevented the league from charging them for breaching PSR rules during the 2022/23 season.

The Foxes claimed the Premier League did not have jurisdiction to charge them because they were competing in the Championship at the time.

The Premier League contested Leicester’s successful appeal but a tribunal ruled in the club’s favour, saying the league’s challenge fell below the threshold set by the organising body itself.

The Premier League has since changed its rulebook to close the loophole and prevent similar cases in the future, while also allowing it to open new proceedings following alleged breaches for the 2023/24 season – when Leicester were in the Championship.

The club are also accused of failing to provide their annual accounts to the Premier League by 31st December 2024 and not offering “full, complete and prompt assistance” to the Premier League in response to the league’s enquiries.

A Leicester statement read: ‘Consistent with its previous commitments, the club intends to engage cooperatively in this matter now that the Premier League’s jurisdiction has been established for the period ending FY24.

‘However, we will not be able to comment further on these proceedings until they are concluded, due to their confidential nature.’

A spokesperson for the EFL said: ‘The EFL notes that the Premier League has today referred Leicester City to an independent commission for an alleged breach of profit and sustainability rules for the period ending season 2023/24.

‘The EFL commenced an investigation into this reporting period following the March 2024 submissions and as is permitted in accordance with EFL regulations, jurisdiction for that passed to the Premier League at the conclusion of the 2023/24 season on the club’s promotion.

‘We will now await the outcome of the Premier League proceedings and until then are not able to comment any further on the matter.’

Credit: https://www.sportspro.com/

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