Leicester City handed major boost as points deduction reduced

Leicester City have been given greater clarity over their ongoing profit and sustainability (PSR) case after a final decision was reached.

The Foxes were charged in May over an alleged breach of the EFL’s financial regulations during their 2023-24 promotion-winning campaign. After a hearing in November, it was confirmed on 5 February that the club would receive a six-point deduction.

The sanction took immediate effect, dropping Leicester to 21st in the Championship table, where they sit outside the relegation zone only on goal difference.

In response, the club described the punishment as “disproportionate” and confirmed they are reviewing their options.

Financial expert and former Manchester City adviser Stefan Borson told Football Insider that the outcome could have been far harsher. The commission found Leicester exceeded their £83m permitted losses by £20.8m across the three-year assessment period between 2021-22 and 2023-24.

Borson explained that the Premier League had initially proposed a 12-point deduction before adjustments were made, meaning the final six-point penalty represents a comparatively favourable outcome. He added that the decision may allow Leicester to move forward from the issue.

A key element of the case centred on whether the assessment period should cover 36 or 37 months, following Leicester’s change to their accounting date. Had the longer period been accepted as the Premier League had argued the breach would reportedly have exceeded £40m rather than £20.8m, potentially leading to a much steeper punishment and further implications for the 2024-25 cycle.

Borson indicated that Leicester now appear to be clear of further PSR concerns for the current reporting period, which he described as very positive news given the club’s difficult position on the pitch.

Leicester are also searching for a new permanent manager after dismissing Marti Cifuentes last month. Former midfielder Andy King is currently in interim charge, though he is not expected to be appointed on a full-time basis.