Why Leicester City Could Face a Points Deduction – and How the Premier League Gained Authority

⚖️ What’s the Situation?

Leicester City are facing potential sanctions after being charged with violating Profit and Sustainability Rules (PSR) during the 2023–24 season, a period when they were competing in the Championship.

Although Leicester were previously under the EFL’s jurisdiction due to their relegation, a recent tribunal has confirmed that the Premier League now has the authority to investigate and pursue charges. This decision stems from the fact that the EFL formally transferred the case to the Premier League after Leicester earned promotion in June 2024.

🧾 What’s Leicester Accused Of?

Aside from breaching the PSR threshold (which limits losses to £83 million over three years for EFL clubs), Leicester are also alleged to have:

• Failed to submit their accounts by the Premier League’s 31 December 2024 deadline
• Not fully cooperating with the league’s inquiries

💰 Financial Background

Leicester reported losses of:

• £92.5m up to May 2022
• £89.7m in 2022–23
• £19.4m in 2023–24 (not including allowable deductions for infrastructure and other investments)

🏛️ Timeline Highlights

• June 2023: Leicester’s 2022–23 accounts close after being relegated
• March 2024: Premier League charges Leicester over PSR breach
• September 2024: Leicester win an appeal over 2022–23 charges due to jurisdiction limits
• May 2025: Premier League charges Leicester again, this time with jurisdiction confirmed

🔍 What Could Happen Next?

If found guilty, Leicester could face a points deduction in the 2025–26 Championship season, though experts like Kieran Maguire believe this is unlikely while they’re in the EFL, as disciplinary actions are complicated by the separate governance structures of the Premier League and EFL.

However, with growing coordination between the leagues, future regulatory loopholes may become harder for clubs to exploit.