Leicester have been charged by the Premier League for allegedly breaking financial regulations, increasing fears about a potential points deduction next season.
The club have been referred by the league to an independent disciplinary panel after allegedly breaching profitability and sustainability rules (PSR) during their three most recent seasons in the top flight. Premier League clubs are permitted to make a maximum loss of £105m across a three-year cycle.
Leicester were relegated last season, two years after winning the FA Cup and achieving the second of successive fifth-placed finishes. The Championship promotion chasers also face potential punishment from the English Football League relating to the period that includes this season. If found guilty, that could be a fine or a points penalty. If Leicester do not return to the top flight at the first attempt, it is thought any penalty imposed by the Premier League could be administered by the EFL.
The club has been charged by the Premier League for failing to submit their latest audited accounts relating to the 2022-23 campaign. Leicester are expected to report a hefty loss when they release their accounts at the end of this month. Last year they confirmed a record £92.5m loss in the 2021-22 season.
In a statement, Leicester, the fourth club charged by the Premier League for breaching its PSR rules, said they were “extremely disappointed at the timing of the charge” and added that the club “will continue to defend itself from any unlawful acts by the football authorities, should they seek to exercise jurisdiction where they cannot do so”.
Leicester were angered by the EFL’s attempt to impose a business plan on them in November after the league’s independent club financial reporting unit expressed concern about their projected 2023-24 accounts.
The Premier League’s statement, released on Thursday evening, said: “The Premier League has today referred Leicester City FC to an independent commission for an alleged breach of profitability and sustainability rules and for failing to submit their audited financial accounts.”
The Premier League statement also clarified that the reason for the delay in the referral was that Leicester were relegated before updated rules were introduced at the league’s annual general meeting at the end of last season.
It said: “Leicester were relegated to the Championship prior to the introduction of the Premier League’s new standard directions, which prescribe a timeline within which PSR cases should be heard.
“Therefore, the proceedings will be conducted in accordance with a timetable to be set by the independent commission, and its final decision will be published on the Premier League’s website.”
Everton and Nottingham Forest have faced similar PSR charges relating to accounts up to 2022‑23. Forest were given a four-point deduction on Monday and Everton were docked 10 points in November – reduced to six on appeal – for previous PSR breaches, but could face a second punishment relating to the period ending with their 2022-23 accounts.
