Leicester City is in hot water with the Premier League after they were referred to an independent commission for alleged breaches in the league’s profit and sustainability rules. The club, which was relegated to the Championship last season, failed to submit their audited financial accounts, leading to this action.
If found guilty, Leicester could potentially face a points deduction, making them the third club to do so for breaching Premier League spending regulations. The maximum amount a club can lose over a three-year period is set at £105 million, and it seems Leicester may have exceeded that limit.
In response to the Premier League’s decision to charge them, Leicester expressed surprise and disappointment. Despite not being a Premier League club, they remain willing to engage constructively with the league and the EFL to resolve any potential issues. They are prepared to defend themselves against any unjust actions taken by football authorities.
Leicester is currently sitting in second place in the Championship, level on points with league leaders Leeds United. Ipswich is trailing closely behind, but Leicester has a game in hand. Promotion back to the Premier League is their ultimate goal, but if they fail to achieve it this season, the points deduction would affect them in the Championship.
Due to the extensive investigation required by the independent commission, any potential points deduction is unlikely to take effect this season. This could have a significant impact on Leicester’s plans for promotion, as they need to ensure they comply with all regulations to avoid further penalties.
Leicester is not the first club to face scrutiny over financial issues, as defending champions Manchester City were also referred to an independent commission last year for multiple alleged breaches of finance rules. It remains to be seen what the outcome of these cases will be, but it is clear that financial compliance is a crucial aspect of the modern football landscape.