The Premier League charged Leicester City for breaching profitability and sustainability rules (PSR). The Foxes will now have to face the charges in front of an independent panel. This comes as the club currently features in the Championship after dropping from the top flight in May 2023.

Nevertheless, officials claim that the East Midlands side violated spending rules during their last three campaigns in the division. Premier League rules currently state that teams cannot exceed $133 million in losses during a three-year period.

Leicester is the latest English team to suffer from charges regarding PSR laws. Manchester City, Everton (twice), and Nottingham Forest have all received similar news in recent months. The Toffees received a six-point punishment in their case. Sean Dyche’s said still has the looming threat of another deduction. The Premier League hit Forest with a four-point deduction earlier this week. City, on the other hand, is currently waiting to learn their fate in their particular case.

Foxes failed to report accounts for most recent financial year

Upon receiving the charge, Leicester quickly issued a statement on the ordeal. The Foxes claimed to be “surprised” by the news, admitting that the charges are odd considering that they are not even in the Premier League at the moment.

“Leicester City is surprised at the actions the Premier League has taken today,” the team said in a statement. “The club is extremely disappointed that the Premier League has chosen to charge LCFC now, despite the club’s efforts to engage constructively with the Premier League in relation to the matters that are the subject of this charge, even though LCFC is not currently a Premier League club.”

“LCFC has repeatedly demonstrated its commitment to the P&S rules through its operating model over a considerable period, achieving compliance while pursuing sporting ambitions that are entirely credible given the consistent success that the club has achieved in that time, both domestically and in European competition.”

Nevertheless, the Premier League decided to charge Leicester after the club failed to report their recent financial accounts. This particular timeframe is for the 2022/23 season. Leicester previously admitted to losses surpassing $116 million losses for the 2021/22 campaign. This was before suffering relegation to the Championship.

East Midlands club could start 2024/25 campaign with negative points

Leicester is currently sitting second in the Championship standings behind Leeds. The Foxes do, however, have an extra game in hand compared to the Whites. The top two teams in the division each receive an automatic place in next season’s Premier League.

Earning promotion back to the top flight is the goal for all second-tiered teams. Nevertheless, Leicester could face a points deduction before the 2024/25 season even starts. The club would then essentially begin the campaign behind the eight ball. The Foxes may suffer a penalty in the Championship next season, assuming they do not earn promotion.

English officials are trying to crack down on overspending by Premier League clubs. The rules are controversial, as they tend to target teams outside of the ‘Big Six.’

However, big changes could be coming to the PSR laws as early as this summer. The top flight is looking to alter the financial rules to reflect similar laws in place with UEFA. This potential change will not affect current issues with Leicester or the other teams that already face charges.