Leicester City Premier League points deduction fear emerges amid FFP worry

Leicester City face a potential points deduction in the Premier League next season should they make an instant return to the top-flight, according to reports.

The Foxes are currently top of the Championship with 11 games left to play. Despite losing their last three games, Leicester remain favourites to see out the job and return to the Premier League.

However, The Sun have reported that City are facing questions from clubs in both the Premier League and Championship over two breaches of Financial Fair Play (FFP) rules. It’s said that clubs suspect that Leicester broke the top flight’s £105million limit on losses for the three years that ended last season.

Rivals are also believed to claim that Leicester will surpass the £83million of combined losses they can make over the years ending with the current campaign. The report does claim, however, that promotion back to the Premier League could be a loophole to avoid any sanction.

Leicester are yet to release their accounts for the year ending 2023. Under the Premier League’s clamp down on its Profitability and Sustainability rules (PSR), Everton and Nottingham Forest are facing punishment for their alleged breaches in the same term.

Premier League teams are allowed to lose a maximum of £35million per season across three seasons, but there are a number of losses, such as investment into youth development or infrastructure projects, that are permissible. Both clubs have been deemed to have breached those limits, with the details of their spending to be analysed further at their hearings.

Both clubs had to submit their 2022/23 figures on December 31 and it’s reported that Leicester would have been in the same position, but their relegation in May meant they didn’t have to reveal their numbers.

In the previous three seasons (2019/20, 2020/21 and 2021/22), Leicester posted a loss of at least £141.75million – over the limit. In the summer of 2022, City cut their spending significantly to avoid breaching any rules.

Wout Faes arrived for just £15million only after Wesley Fofana forced a £70million move to Chelsea. Over £25million was spent in January 2023 to sign Harry Souttar and Victor Kristiansen before just under £40million was spent following relegation.

Leicester’s defence comes in their player sales. Alongside Fofana’s exit, City raised around £89million in player sales through the sales of Harvey Barnes, James Maddison, Timothy Castagne and George Hirst plus further savings through player wages after Youri Tielemans, Jonny Evans, Ayoze Perez and Caglar Soyuncu left on free transfers.