Leicester City’s latest legal row with the Premier League will finally begin next week.
The Championship club will appear at a hearing as they contest three new charges, with the renewed prospect of a points deduction hanging over them.
Leicester are alleged to have breached profitability and sustainability (PSR) rules for the 2023-24 season, when the club were last operating in the Championship.
With the Premier League confirming the charges in May, Leicester were also accused of failing to provide their annual accounts before the December 31 deadline.
There was an additional charge after failing an “obligation to provide full, complete and prompt assistance to the Premier League”.
Leicester are facing a number of potential sanctions if the charges are proven by an independent disciplinary commission. That could range from a points deduction to a fine or transfer ban.
Leicester’s legal battles with the Premier League have been ongoing for more than 18 months.
In September last year, Leicester won an appeal against their first alleged breach of PSR when a panel found the Premier League did not have the jurisdiction to punish Leicester as they had been relegated to the Championship when their accounting period ended on June 30, 2023.
Renowned sports lawyer Nick De Marco and his team at Blackstone Chambers successfully defended Leicester on that occasion, and are expected to represent them at next week’s hearing.
How bad were Leicester’s losses?
Leicester have made combined losses of more than £200m across the three-year rolling period ending June 30, 2024. PSR regulations permit a maximum of £81m over that period, with adjustments for deductions.
Those losses included a record amount of £92.5m in the 12 months leading up to May 2022.
The following year they reported losses of £89.5m, attributing them to a number of factors including relegation, the “unplanned expenditure” of sacking £8m-a-year manager Brendan Rodgers, plus an estimated £30m deficit from finishing 18th in the table below targeted expectations.
As a result of those losses, Leicester have spent just under £3m on transfer fees this year.
When could we get a verdict?
It is unclear when Leicester will discover the outcome of this hearing, but many sources claim a final verdict is not expected until the end of this year at the earliest.
Appeals could risk the row dragging on into the second half of the season.
After rules were amended earlier this year, any sanction – including a points deduction – could be imposed this season with Leicester in the Championship.
That uncertainty is threatening to cause great disruption in the chase for promotion.
Leicester and the Premier League declined to comment.
