The Premier League has charged the club with allegedly violating profit and sustainability rules (PSR) for the 2023–24 season, during which Leicester played in the Championship. As a result, the case has been passed to an independent commission.
This development comes after a lengthy arbitration process to determine which governing body has the authority to pursue action against Leicester, given the club's recent movement between the Premier League and the Championship.
A tribunal has now confirmed that the Premier League holds the right to charge Leicester. The club, having been relegated from the Premier League, is set to compete in the Championship again next season.
Despite this, the case is expected to proceed under the Premier League's 12-week fast-track protocol. If a penalty is imposed, it could be applied in the 2025–26 Championship season, depending on the case's outcome.
However, football finance analyst Kieran Maguire told the BBC that it's doubtful any punishment will be enforced while Leicester are outside the top tier, since the Premier League and EFL operate independently of one another.
The independent commission is also set to examine two additional alleged violations: Leicester's failure to submit their financial accounts to the Premier League by the 31st of December, 2024, and a lack of full cooperation with the league's investigations.
Under PSR rules, Premier League clubs are not allowed to exceed losses of £105 million over a three-year period, with the threshold lowered by £22 million for each season a club is outside the top flight.
Leicester reported a £19.4 million loss for the financial year ending 30 June, 2024. This follows a loss of £89.7 million in the 2022–23 financial year and a record £92.5 million loss in the year up to May 2022.
These losses exclude allowable deductions known as "add-backs," such as investment in club infrastructure and women's football, which are considered in the broader interests of the game by both the Premier League and EFL.
This marks the second time in three seasons that Leicester have dropped out of the Premier League. The club has stated its intention to cooperate fully now that the Premier League's authority over the 2024 financial year has been confirmed.
For context, Everton were handed a two-point deduction in April 2024 after being found guilty of a £16.6 million PSR breach over the three-year period ending in 2022–23. Earlier, they had received a 10-point penalty—later reduced to six on appeal—for a separate violation during the 2021–22 season. Nottingham Forest were also docked four points in March 2024 for their own breach of financial rules.
