Author: Nick Mashiter Mandeep Sanghera

Getty ImagesNick MashiterBBC Sport football news reporter 3 hours ago845 CommentsMandeep SangheraBBC Sport journalistLeicester City could face a future points deduction after being charged with an alleged breach of the EFL’s financial rules.The Foxes have been referred to an independent commission after being charged by the Premier League for an alleged profit and sustainability (PSR) breach for the year 2023-24, when they were in the Championship. The new charge follows a lengthy arbitration process over who holds jurisdiction over Leicester, with the club bouncing between the Championship and Premier League in recent seasons. A tribunal has now ruled the Premier League has the power to charge Leicester, who have been relegated from the top flight and will play in the Championship next season. The timeline of the case should still come under the Premier League’s 12-week fast-track process, meaning any possible points deduction, depending on the outcome of the case, could come in Leicester’s season in the Championship in 2025-26.But football finance expert Kieran Maguire told BBC Sport he believes it is unlikely a punishment would be imposed on Leicester while they are in the second tier because the Premier League and EFL are separate entities.The independent commission will also assess two further alleged breaches by the Foxes; that they failed to provide accounts to the Premier League by 31 December, 2024, and that they did not “provide full, complete and prompt assistance to the Premier League in response to the league’s inquiries”.Under current PSR rules the Foxes’ losses cannot exceed £83m for the three years up to 2023-24. Premier League clubs cannot lose more than £105m over three years but the figure is reduced by £22m for every season a club spends outside the top flight. Leicester’s latest accounts showed a loss of £19.4m for the period ending 30 June, 2024. Those figures do not take into account ‘add backs’ – costs such as building infrastructure and investing in women’s football that the Premier League and EFL view as in general interests of clubs.In their 2022-23 accounts Leicester confirmed an £89.7m loss while in the 12 months up to May 2022 they lost a club record £92.5m.Leicester, who this season have been relegated to the Championship for the second time in three years, said: “The club intends to engage co-operatively in this matter now that the Premier League’s jurisdiction has been established for the period ending FY24 (financial year 2024).”In April last year, Everton were docked two points after an independent commission found the club had breached PSR by £16.6m for the three-year period to 2022-23 having already been hit with a 10-point penalty – reduced to six on appeal – a few months before for a 2021-22 breach. Nottingham Forest were also given a four-point deduction in March 2024 for a breach.What has happened and why can the Premier League do this?At the centre of the tribunal decision were two contrasting decisions.Leicester won an appeal in September 2024 against an alleged breach of Premier League PSR rules for the 2022-23 season.An independent panel found the Premier League did not have the jurisdiction to punish the Foxes as the club had been relegated to the Championship when their accounting period ended on 30 June 2023.The Premier League said at the time it was “surprised and disappointed” by the panel’s decision, while Leicester said they had “simply sought to ensure that the rules are applied based on how they are actually written”.In January the Premier League announced that no clubs were being charged for PSR breaches for the 2023-24 season, despite reports Leicester were one of several clubs close to the limit. In a joint statement, Leicester and the Premier League said the matter remained “the subject of confidential arbitration proceedings”.Tuesday’s latest tribunal ruling said the jurisdiction decision on the 2022-23 case was wrong, but that it would not overturn it because it “was not a perverse interpretation of the law”.The Premier League tightened its rules in April so that clubs were still bound by its rules even if they were relegated.Explaining the tribunal’s decision to give the Premier League jurisdiction over the 2023-24 season, the league said in a statement: “The alleged breach relates to the assessment period concluding at the end of the 2023-24 season, when the club was a member of the EFL Championship.”The tribunal confirmed that the Premier League has the power to investigate an alleged breach of the P&S Rules [PSR] because the EFL validly transferred responsibility for its investigation to the Premier League in June 2024, when the club was promoted from the Championship. “The Premier League continues to have jurisdiction even though Leicester City will be relegated to the Championship at the end of this season.”The EFL is waiting for the conclusion of proceedings, having passed the matter to the Premier League. An EFL statement read: “The EFL notes that the Premier League has today referred Leicester City to an independent commission for an alleged breach of profit and sustainability rules for the period ending season 2023-24. “The EFL commenced an investigation into this reporting period following the March 2024 submissions and as is permitted in accordance with EFL Regulations, jurisdiction for that passed to the Premier League at the conclusion of the 2023-24 season on the club’s promotion.”Timeline of Leicester case24 April 2023: Leicester change accounting period from 30 May 2023 to 30 June 202328 May 2023: Leicester relegated from Premier League12 June 2023: Leicester formally cease to be Premier League club 30 June 2023: Accounting period for 2022-23 season ends21 March 2024: Leicester charged by Premier League for breaching PSR rules for three-year period up to 2022-2322 March 2024: Leicester appeal against the Premier League’s charge26 April 2024: Leicester promoted back to Premier League3 September 2024: Leicester win appeal against Premier League charge20 May 2025: Premier League refers Leicester over alleged EFL financial breachAnalysis Football finance expert Kieran Maguire It does look as if the Premier League will now pursue a commission for an alleged PSR breach for the three years ended 30 June 2024. The EFL could, separately, pursue a similar case against Leicester for the three years ended 30 June 2025 should Leicester’s financial results end up exceeding the EFL PSR limit, which will be £83m over that period.Leicester and Bournemouth have previously been found guilty of breaches of EFL PSR rules after they were promoted to the Premier League, and in both cases were given fines.Had Leicester accepted a points deduction at the start of the season in relation to historic breaches it would not have made much difference to their relegation battle, although they would have potentially finished 19th instead of 18th and received £3m less prize money from the Premier League.While the Premier League and EFL are in dispute over financial distribution, their willingness to co-operate more in terms of the rules and regulations relating to promoted and relegated clubs will make it more difficult for Leicester’s original success in avoiding charges by either organisation harder to replicate. Related topicsLeicester CityPremier LeagueFootball