Leicester City hit with six-point deduction for breaching Premier League financial rules | OneFootball

Leicester City have been hit with a six-point deduction after being found to have breached Premier League financial rules.

The Foxes underlined their “disappointment” at the verdict, claiming that the punishment was “disproportionate” and did not fully consider what they maintain were mitigating factors.

It leaves the club, which was relegated from the Premier League in 2024/25, outside of the Championship relegation zone on goal difference only.

The point deduction relates to a breach of the EFL Profit and Sustainability Rules (PSR) for the 2023/24 season, with the news confirmed on Thursday.

The Foxes were accused of failing to submit their annual accounts ahead of the 31 December deadline and not meeting the standard of “providing full, complete and prompt assistance to the Premier League”.

A club statement reads: “The importance of [the mitigating factors] cannot be overstated given the potential impact on our sporting ambitions this season.

“We appreciate the Commission’s agreement with the Club’s position that compliance for FY24 should be assessed over a 36-month period – an important point both for the period in question, but also in providing the Club with certainty on its PSR/P&S compliance for FY25.

“The panel also agreed there were no aggravating factors which should be applied to the sanction, which is something the Club had maintained throughout, and acknowledged the Club demonstrated a positive trend in its finances in FY24.

“We are now reviewing the decision in full and considering the options available to us. We remain committed to engaging constructively and ensuring that any action is fair, proportionate and determined through the appropriate processes.”

Leicester City manager Marti Cifuentes left the club last month (David Davies/PA)

Leicester had won an appeal in September 2024 concerning their first alleged breach of PSR, with a panel finding that the Premier League did not have the jurisdiction to punish Leicester, given the club has subsequently been relegated to the Championship after their accounting period ended on 30 June 2023.

Leicester’s financial turmoil saw them lose over £200m across the three-year rolling period ending 30 June, 2024.

That was £119m more than the permitted maximum of £81m under PSR regulations.

The Foxes had previously competed for a place in the Champions League under Brendan Rodgers, while their FA Cup triumph and a European semi-final underlined their success story even after their incredible title win under Claudio Ranieri in 2016.

Like Aston Villa, Newcastle and Crystal Palace, Leicester's stance centres around a punishment in their view for showing ambition. The PSR era came to an end after last month's January transfer window. Instead, a new set of regulations, named Squad Cost Ratio (SCR) will help regulate spending in the top tier of English football.

The challenge is now clear for the Foxes, with manager Martí Cifuentes departing last month, with the danger of dropping into League One.

A new head coach is a priority ahead of this weekend’s trip to Birmingham City, with the Foxes, and Blackburn Rovers, only outside the drop zone on goal difference.

It could mean that a positive result for West Brom, who host Stoke City next, could see the Foxes fall into the bottom three.