Leicester City charged by Premier League over alleged breach of PSR rules

Leicester is facing a charge from the Premier League for supposedly violating financial rules, which is causing concerns that they may face a deduction of points in the upcoming season.

The league has accused the club of breaking the profitability and sustainability regulations (PSR) during their last three seasons in the top-flight. This means they have been referred to an independent disciplinary panel. Premier League teams must adhere to the £105m loss limit over three years.

The team from Leicester got downgraded last year, which happened just two years after they won the FA Cup and came in fifth place two years in a row. They are chasing a promotion in the Championship, but are also in trouble with the English Football League because of something that happened this year or in the past. If they did something wrong, they could get a fine or lose points. If Leicester doesn't go back up to the big league next season, then they might have to face a punishment from the EFL instead of the Premier League.

The Premier League is accusing the club of not providing their latest audited accounts for the 2022-23 season. Leicester is projected to reveal significant losses when they release their accounts by the conclusion of this month. In the previous season, they confirmed incurring a substantial loss of £92.5 million, which was a record-breaking amount.

Leicester, which is the fourth team accused of violating the PSR regulations by the Premier League, expressed their dissatisfaction with the accusation's timing. The club stated that they are disappointed and will fight any illegal actions taken by the football authorities. They will defend themselves against any jurisdiction exercised by the authorities where it is not allowed.

Leicester experienced frustration when the EFL tried to enforce a business strategy on them in November. The league's unbiased department for club financial reporting raised suspicions regarding Leicester's future financial statements for 2023-24.

On Thursday evening, a statement was made by the Premier League stating that Leicester City FC is being referred to an autonomous commission for potentially violating regulations on profitability and sustainability, as well as neglecting to submit their reviewed financial accounts.

The Premier League clarified in a statement that the delay in the referral was due to Leicester's relegation before the new rules were introduced at the league's annual general meeting last season.

The statement mentioned that Leicester got relegated to the Championship before the Premier League's new regulations came into force. These regulations specify a timeframe for when PSR cases must be resolved.

As a result, the course of action will follow a schedule decided by the unaffiliated committee, and the ultimate verdict will be made public on the Premier League's site.

The football clubs of Everton and Nottingham Forest are both dealing with comparable PSR accusations related to their accounts until 2022-23. Not long ago, Forest received a penalty of four points, while Everton received a bigger deduction of 10 points in November. However, it was later reduced to six points after they appealed. Despite this, Everton may face yet another punishment for their PSR violations during the period covered by their accounts up to 2022-23.