Leicester City hit with 6-point deduction for PSR breaches; club drops to 20th in Championship

Leicester City have been handed an immediate six-point deduction after being found to have breached the English Football League’s profit and sustainability rules.

The sanction was imposed by an independent commission following an investigation into the club’s finances.

The breach relates to the three-year accounting period ending with the 2023-24 season.

A Premier League statement confirmed the punishment on Thursday, bringing an end to months of uncertainty.

The commission ruled Leicester exceeded the permitted PSR loss threshold by £20.8 million over the assessment period.

The Premier League had argued for a 12-point deduction, citing the scale of the overspend.

Leicester, by contrast, maintained a financial penalty would have been more appropriate.

That argument was rejected, with the commission concluding a sporting sanction was necessary.

In its written reasons, the commission said a points deduction was the only sanction that adequately met the aims of the rules.

It added that any lesser punishment would be inconsistent with previous cases, including those involving Everton.

The commission also dismissed Leicester’s claim that it lacked the authority to impose a points deduction in the EFL.

Leicester criticised the outcome, describing the punishment as “disproportionate”.

The club said it would now consider its next steps, including a potential appeal.

The deduction leaves Leicester hovering just above the Championship relegation zone on goal difference.

They are level on points with West Bromwich Albion and Blackburn Rovers in the bottom three.

The timing compounds existing instability at the King Power Stadium.

Leicester are currently without a manager following the dismissal of Marti Cifuentes last month.

The commission also found the club breached Premier League rules by failing to submit annual accounts on time.

It rejected Leicester’s assertion that they had shown exceptional cooperation during proceedings.

Under PSR, clubs are permitted to lose up to £105 million across three Premier League seasons.

Championship clubs operate under a lower limit of £39 million over the same period.

Leicester spent two of the relevant seasons in the Premier League and one in the Championship.

That meant their permitted loss was capped at £83 million, not £105 million as the club argued.

The commission ruled Leicester’s interpretation of the threshold was incorrect.

Leicester’s published accounts show losses of £19.4 million in 2023-24.

Those figures followed deficits of £89.5 million and £92.5 million in the previous two seasons.

Even after allowable deductions, Leicester were found to have recorded PSR losses of £103.8 million.

The ruling highlights the long-term financial consequences of the club’s rapid rise and sharp decline.

Leicester were Premier League champions less than a decade ago and Champions League quarter-finalists in 2017.

Since then, falling revenues and a bloated wage bill have left the club exposed.

The points deduction deepens the threat of relegation and places further pressure on an already fragile campaign.