Leicester City are reportedly facing two separate points deductions this season for breaking spending rules, according to The Sun.
The club is under investigation for breaching financial spending regulations, potentially facing two separate inquiries.
One inquiry stems from Leicester’s compliance with the Profitability and Sustainability Rules (PSR) during their time in the Championship.
The consequences could significantly impact Leicester’s season in the Premier League, where they are looking to contend with the best teams in England.
The Profitability and Sustainability Rules (PSR) are designed to ensure that clubs do not spend more than they earn, protecting them from financial crises while maintaining competitive balance in the league.
Clubs in the United Kingdom are allowed to report losses within a specified limit, beyond which they face sanctions such as fines or points deductions.
Leicester’s financial troubles could be linked to their significant spending in recent years, both in terms of transfer fees and player wages.
They may face a situation similar to Everton, who received two separate points deductions for financial overspending during successive three-year periods.
Everton initially had a ten-point penalty reduced to six on appeal for breaches covering the 2021-2022 period. However, they were later penalised with an additional two-point deduction for the subsequent period in 2022-2-23.
Leicester, having been charged by the Premier League in March, are under scrutiny for exceeding the £105million loss limit for the financial period ending in 2022-23.
However, the case against Leicester City has been delayed after the club launched a legal challenge, arguing that the Premier League had no jurisdiction to charge them while they were competing in the Championship.
The charges relate to Leicester’s financial losses of £215.3 million between 2020 and 2023, exceeding the £105 million limit.
The EFL had already begun investigating the club’s finances during the 2023-2024 season, forecasting further overspending.
While an attempt to enforce an EFL-run business plan was overturned on appeal, Leicester faced a transfer ban last season.
Sources have indicated that the Premier League is likely to push for two separate points deductions.
The Premier League has yet to comment on the ongoing legal proceedings.
Meanwhile, Leicester are set to kick off their season at home against Tottenham under their new manager, Steve Cooper.
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