Leicester City on the verge of another PSR charge after examination of latest club books and financial accounts.
Leicester City on the verge of another PSR charge as they nervously wait to discover whether they will be charged by the Premier League.
Due to losses during the previous two years, the club, like numerous others in the top division, had to submit their financial records for the 2023–24 season by 5 p.m. on New Year’s Eve. They will be informed by January 13th as to whether they have violated PSR.
Earlier this season, Leicester avoided losing Premier League points after being accused of a £24.4 million violation for the 2022–2023 campaign. By submitting their records for that period on June 30, 2023, the club’s legal team was able to convince an independent panel that Leicester was not in the Premier League because they had been relegated at the end of that season.
The club could face charges for another violation, though, as they reported pre-tax losses of £92.5 million for the 2022 fiscal year and £90 million for the 2023 fiscal year. With Ruud van Nistelrooy’s team at second-bottom at the midway stage, any charge might be a serious blow to Leicester’s chances of surviving, especially considering the points that were taken away from Everton and Nottingham Forest last season.
According to Premier League regulations, clubs can only lose £105 million over three years if they were in the top division at that time. Due to the English Football League’s more stringent expenditure restrictions, Leicester’s allowed losses for the current three-year cycle would be lowered by £22 million because they were in the Championship the previous season.
With Harvey Barnes’ £38 million move to Newcastle and Timothy Castagne’s £15 million transfer to Fulham included in their most recent records, as well as the £10 million compensation earned following Enzo Maresca’s move to Chelsea, the club’s losses should have been lessened by the player sales from the previous season. Since Kiernan Dewsbury-Hall’s £30 million transfer to Chelsea did not close until July 2024, it will not be included.
If Leicester is relegated at the end of this season, they may be charged by the EFL for excessive expenditure during the 2020–23 season, as the Guardian previously reported.
All Premier League clubs that have recorded total losses over the last two accounting periods are required to submit their last season’s books by December 31st, in accordance with rules put in place eighteen months ago to make sure that any PSR violations are handled quickly. In order to ascertain whether there have been any PSR violations, Premier League solicitors and accountants will examine the data over the course of the next two weeks. Any charges will be made public by January 13.