Violations of PSR rules
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Throughout 2024, there were several allegations that Leicester City had violated the Premier League’s profitability and sustainability rules (PSR), and a point deduction was always on the cards. After the newcomer was able to avert this in September, he has apparently once again become the focus of investigators.
According to The Guardian newspaper, the English elite league is reviewing the annual reports of several clubs that have made losses in the past two years by January 13th. Leicester, among others, had to submit the relevant documents by December 31st. At the start of the season, the Foxes had averted the penalty because they were not playing in the Premier League at the time the books were submitted for the 2022/23 season.
Under PSR rules, a club cannot report a loss of more than £105 million over a set period of three years. If a club does not spend all three years in the Premier League, this amount is even reduced due to the stricter rules in the English Football League (EFL), in Leicester’s case by £22 million.
However, for the financial years 2022 and 2023 there will be a loss of 92.5 million and 90 million pounds in Leicester’s balance sheet. The transfers from last season are not taken into account; after relegation, the Foxes made a transfer profit of around 60 million euros (50 million pounds) through the sales of James Maddison (Tottenham) or Harvey Barnes (Newcastle; for an overview of all Leicester transfers).
Last season, Everton FC and Nottingham Forest had points deducted for similar offenses. Leicester with new coach Ruud van Nistelrooy is currently in second-to-last place 19th after 19 match days and only has 14 points. That’s two fewer than Wolves in 17th place (in the Premier League table).
