Jibrin10 years ago, Leicester were Premier League champions. Now, they sit 21st in the Championship after being penalized six points for violating profit and sustainability rules.
The Foxes’ decline over the past decade has been dramatic, but how exactly did it come about?
In a statement confirming their points deduction, the Premier League said: “An independent Commission has recommended that an immediate six-point deduction be imposed on Leicester City FC in the Championship, having found them to be in breach of the EFL Profit and Sustainability Rules (P&S Rules) for Season 2023/24.”
Profit and sustainability rules stipulate that a club is only permitted to incur losses of £105 million over a rolling three-year period.
Leicester City were accused of breaching the rules in the three seasons leading up to the conclusion of 2023/24. Leicester lost £92 million in 2021/22, £89 million in 2022/23, and £19 million in 2023/24.
In 2023/24, Leicester were competing in the Championship, where the loss threshold drops by £22 million from the initial £105 million for every season spent outside the top flight. Therefore, Leicester were charged with exceeding their £83 million limit due to their time in the Championship.
They surpassed that £83 million limit by just over £20 million and are also reported to have failed to submit accounts for the year ending in 2023/24 on time.
The commission initially recommended a seven-point deduction; however, this was reduced to six as Leicester’s finances were showing improvement. Between the end of 2022/23 and 2023/24, their losses fell by £70 million.
“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,” Leicester City said in response to the points deduction.
“While the commission’s findings significantly reduced the unprecedented scale of the sanction originally sought by the Premier League, the recommendation remains disproportionate and does not adequately reflect the mitigating factors presented, the importance of which 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.”
Although the points deduction was anticipated, it has come at a particularly bad time for the Foxes, who are currently in poor form and without a manager after dismissing Marti Cifuentes last month. Andy King is temporarily in charge of the club as interim head coach.
The deduction leaves Leicester outside the Championship relegation zone only on goal difference, dropping from 17th place to 20th. They face 13th-placed Birmingham next, who are currently unbeaten in their last six league matches.
With a challenging run of fixtures ahead, the threat of Leicester being relegated to League One is looking increasingly likely. If this occurs, it will be the first time since 2007/08 that they fall to the third tier of English football.
Jibrin
