Leicester City: Stoke City Championship rivals finally faces points deduction over alleged PSR breach
A team likely to be one of Stoke City’s toughest rivals in the Championship next season are facing a potential points deduction for alleged breaches of profit and sustainability rules.
Leicester City have just been relegated to the second tier for the second time in three seasons, but their hopes of achieving a rapid return to the top-flight could be hit by the outcome of an independent probe into their finances for 2023/24.
After successfully dodging a potential punishment for alleged spending breaches covering their 2022/23 campaign, Leicester are now facing another covering the following season.
A commission is investigating an alleged breach of the Premier League financial loss threshold, the club’s supposed failure to submit accounts by December 31, 2024, and claims it did not provide full, complete and prompt assistance over the issue.
As one of potentially just three teams to receive parachute payments next season, depending on the outcome of Sheffield United’s play-off final bid to return to the Premier League, Leicester are likely to start the 2025/26 Championship campaign as one of the favourites for promotion.
However, any potential points deduction – which would be applied in the Championship – could affect this aim greatly, plus open the door for other challengers.
While Stoke have not breached EFL finance rules since relegation, compliance has severely restricted their spending at different times during the past seven years.
Leicester successfully fended off a points deduction for their 2022/23 campaign spending when they were also relegated to the Championship. They won an appeal by successfully arguing the Premier League did not have the jurisdiction to charge them because they were an EFL club at the time of the accounting period.
The Premier League released a statement into the latest investigation, which read: “Following an Arbitration Tribunal’s decision concerning jurisdiction, Leicester City has now been referred to an independent Commission for alleged breaches of:
“The Arbitration proceedings looked at (a) the Premier League’s jurisdiction to investigate an alleged breach by the club of the EFL’s P&S Rules for Season 2023/24; and (b) a previous Appeal Board decision regarding the League’s jurisdiction in respect of a breach of the Premier League’s Profitability and Sustainability Rules (PSR) for Season 2022/23.”
An EFL statement added: “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.”
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