Leicester City are under threat of getting relegated again before they have even been promoted to the English Premier League. According to reports, Leicester City will receive a points deduction upon their imminent return to Premier League soccer next season. They allegedly escaped the sanctions last season because of relegation. The point deduction comes amidst their breach of spending rules.
Like multiple other Premier League clubs, Leicester also faces issues balancing their finances. A series of financial losses has made Leicester’s future look bleak. The Profitability and Sustainability (P&S) loss limit for two years in the Premier League is a loss of £70 million. Considering Leicester spent a year in the second tier of England, their limit for that year is £13 million. So, in total their loss limit was £83 million for three years.
🚨 Leicester will receive a substantial points deduction upon their return to the Premier League for breaking spending rules, as they escaped sanctions this season due to relegation.
(Source: @TeleFootball) pic.twitter.com/axDTg1N2H9
— Transfer News Live (@DeadlineDayLive) March 8, 2024
Leicester City’s situation is so grim that their loss for the financial year 2021/22 was £92.5 million. They will be going public with their finances of last year and it is expected to show another grim loss. If they are hit with a points deduction, they will be the second club to get punishment this season as Everton have faced the same fate. Nottingham Forest are also under the threat of having their points deducted.
EFL released a statement regarding Leicester City’s alleged breach of rule
The English Football League (EFL), which runs the second-tier of English soccer released a statement regarding the Foxes’ alleged breach of rule. According to the EFL’s statement, “the EFL’s independent Club Financial Reporting Unit (CFRU) concluded that the Club was forecasting to breach the P&S loss limits for the three-year period ending with financial year 2023/24.”
A statement from the @EFL tonight regarding the financial situation at @LCFC.
— Callum McFadden (@Callum7McFadden) March 6, 2024
The CFRU required Leicester to submit a business plan, however, the Club argued that decision. “The matter was referred by the Club to the independent Club Financial Reporting Panel (CFRP)” and it was concluded that Leicester did not have to submit a business plan under the current rules.
It seems as if Leicester are now in a tussle with the league, which wants to treat all clubs fairly, according to their statement. EFL has refused to make further comments about the situation.
Leicester City are in a tight battle for automatic promotion to the Premier League
From the EFL Championship each season, three clubs are promoted to the Premier League. From the Premier League, three clubs are relegated. Leicester City were one of the clubs relegated last season from the Premier League. They finished 18th with 34 points just three points away from safety.
However, the Foxes are prepared to make their way back into the top flight of English soccer. Before Gameweek 37 for the Foxes begins, they lead the EFL table after playing 36 games and earning 81 points. Leeds United, who were also relegated last year, are second after they played their 37th game and earned a total of 79 points. In the third spot, Ipswich Town have earned 78 points off their 36 games.
The top two teams in the EFL standings earn an automatic promotion to the Premier League. The third and final spot is occupied by one of the 3rd to 6th spot teams who enter a playoff tournament. Leicester had a high-flying start and seemed imminent to earn promotion. However, their recent results have taken a turn for the worse. They are still on course to earn automatic promotion but will face strong competition from Leeds and Ipswich.