Leicester have been deducted six points after being found in breach of the Premier League’s financial rules. The punishment, determined by an independent disciplinary commission, leaves them outside the Championship relegation zone only on goal difference.
A hearing took place in November after Leicester were alleged to have breached profitability and sustainability rules (PSR) for the three-season period ending with 2023-24. There were also two further charges against the club for failing to cooperate and failing to submit their financial accounts on time.
Leicester drop to 20th in the Championship, level on points with West Bromwich Albion, who occupy the final relegation spot, and Blackburn.
With Leicester outside the Premier League, the English Football League issued the punishment with immediate effect. The EFL board met on Thursday to apply the sanction as per regulation 87.7 in its rules, which states the league “has the power to implement sanctions equivalent to those recommended by any independent Premier League commission or appeal board”.
Leicester are considering an appeal. In a statement the club said: “It is with disappointment that Leicester City acknowledges the independent commission’s decision and the club will use the time available to consider its next steps.”
They deemed the penalty “disproportionate”, saying: “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.”
The Premier League, which said the commission had recommended a six-point penalty, revealed that Leicester’s “improving financial position” across the period was used in mitigation during the week-long hearing.
Leicester were found to have breached the relevant PSR threshold by £20.8m across the three-year period. The maximum permitted losses across the timeframe, taking in two seasons in the Premier League and one in the Championship, were £83m.
The Premier League said: “The commission found that the club’s refusal to provide its annual accounts to the Premier League by the relevant deadline was a breach of Premier League rules.
“It also dismissed a claim by the club that it had demonstrated exceptional cooperation throughout the proceedings. Following agreement by the parties, and consistent with the relevant guidelines, the commission agreed that the club’s improving financial position over the relevant assessment period was a mitigating factor.”
Leicester, who have lost three of their past four league matches, are searching for a new head coach after sacking Martí Cifuentes last month, with their former midfielder Andy King – part of the squad that won the Premier League in 2016 – continuing in interim charge for Saturday’s trip to Birmingham. Leicester are close to appointing a technical director, to work alongside the longstanding director of football, Jon Rudkin, and a new chief executive.
Cifuentes was removed from his role six months into a three-year contract. In a statement on Thursday, the Spaniard said: “From the moment me and my staff arrived we gave everything to try to help the club in building a fresh culture and set new standards during a challenging period … I wish everyone nothing but the best for what lies ahead in the future for your club.”
