Leicester have enjoyed a comfortable season since their relegation from the Premier League following the 2022/23 season, sitting three points clear at the top of the Championship with nine matches remaining, though their promotion charge may be made considerably more difficult should a points deduction be confirmed.
The news was confirmed on Wednesday as an independent commission confirmed that the club was set to report losses of £83 million over the last three years, though Leicester have not been asked to submit a business model outlining plans to mitigate the deficit. The heaviest losses came during the 2021-22 financial year, which ended May 31, 2022, and saw the club lose £92.5 million. This was partly due to the signings of Patson Daka, Boubakary Soumare, and Jannik Vestergaard, which led to a net transfer spend of £54.3 million, while the COVID-19 pandemic continues to have negative effects on finances up and down the football pyramid.
The 2016 Premier League champions could potentially face a second round of charges upon the publication of 2023/24’s financial reports.
Leicester’s financial deficits will, of course, be dampened by the clubs’ post-relegation fire sale, which raised £90 million primarily through the departures of James Maddison and Harvey Barnes.
Whether Leicester City will face a penalty is yet to be confirmed, though the timing of such a ruling will likely affect the 2024/25 season. Should the Foxes be promoted, they could return to the top flight already on negative points.
The accusations follow a rash of FFP cases in the Premier League, which have seen both Everton and Nottingham Forest face charges for violating Profit and Sustainability Rules. Everton, who are facing two charges, have already been handed a ten-point deduction which was later reduced to six, though both Everton and Forest are awaiting a verdict on the most recent round of charges.