‘Based on my figures’ – finance expert gives Leicester deduction verdict as Leeds United wait

Leeds United and their promotion rivals are closely monitoring the situation as Leicester City faces potential financial penalties for breaching Profitability and Sustainability Rules (PSR). Football finance expert Kieran Maguire has estimated that Leicester City exceeded the PSR limit by £25 to £30 million, based on the club’s reported losses of £89.7 million for the 2022/23 season. This has led to a total deficit of £215.3 million over three years, significantly over the £105 million loss limit set by the Premier League.

Leicester City has been charged by the Premier League for this alleged breach and is currently under a transfer embargo imposed by the English Football League (EFL). There is a growing call from Championship clubs for immediate action, suggesting that Leicester should face a points deduction this season. However, Maguire notes that the legal intricacies of imposing a deduction on Leicester, who are not currently in the Premier League, make the situation complex and a subject of interest for a commission hearing.

The frustration among Championship clubs stems from the belief that Leicester’s financial overspend has given them an unfair advantage in the promotion race. Leicester City, on their part, plans to defend their case, citing an “unexpected decline in sporting achievement” as a mitigating factor. The club’s significant investments in players over the past three years are at the heart of the controversy.

As the Championship season nears its end, it appears unlikely that Leicester will face a points deduction this season. However, the possibility of starting the next season with a points deficit remains, especially considering the recent points deductions faced by Everton and Nottingham Forest for their breaches of the PSR rules.

Citations:
[1] https://www.leeds-live.co.uk/sport/leeds-united/financial-clarity-leeds-uniteds-latest-28876399
[2] https://www.caughtoffside.com/2024/03/04/concern-for-leeds-united-as-reports-emerge-regarding-potential-ffp-breaches/
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[6] https://www.leicestermercury.co.uk/sport/football/football-news/premier-league-considering-points-deduction-9205673
[7] https://theathletic.com/5335329/2024/03/14/leeds-psr-ffp-leicester-promotion/
[8] https://inews.co.uk/sport/football/premier-league-efl-leicester-ffp-points-deduction-2947497
[9] https://www.theguardian.com/football/2024/mar/21/leicester-city-charged-by-premier-league-over-alleged-breach-of-psr-rules
[10] https://www.sportspromedia.com/news/leicester-city-premier-league-financial-rules-breach-charges-chelsea/
[11] https://www.yorkshirepost.co.uk/sport/football/leeds-united/how-leeds-uniteds-promotion-rivals-escaped-punishment-but-could-be-hit-with-points-penalty-next-season-4545817
[12] https://www.reddit.com/r/LeedsUnited/comments/1bkdkxh/leicester_city_premier_league_charges/
[13] https://www.leeds-live.co.uk/sport/leeds-united/efl-confirm-leicester-city-ffp-28768843
[14] https://theathletic.com/5386064/2024/04/02/leicester-accounts-explained-psr-charge/
[15] https://www.leicestermercury.co.uk/sport/football/football-news/i-taken-aback-football-finance-9202193
[16] https://www.bbc.co.uk/sport/articles/crgr319xzgxo
[17] https://www.sportingnews.com/ca/soccer
[18] https://www.yorkshireeveningpost.co.uk/sport/football/leeds-united/based-on-my-figures-finance-expert-gives-leicester-deduction-verdict-as-leeds-united-wait-4582863
[19] https://www.leicestercity.news/news/football-finance-expert-amazed-by-worrying-leicester-city-accounts-after-psr-breach/
[20] https://www.footballinsider247.com/leicester-have-broken-the-rules-points-deduction-now-on-the-way-says-kieran-maguire/