EFL reportedly seeking possible points deduction against Leeds United rival after legal loophole escape — YEP 19/9/24
By Joe Donnohue
Leicester City could be hit with a points deduction of up to
seven points by the EFL if they are relegated from the Premier League.
According to a new report in The Guardian, the English
Football League are determined to see last season's Championship winners
charged in relation to alleged Profitability and Sustainability (PSR) breaches
during the three-year accounting period ending June 30, 2023.
Earlier this month, Leicester escaped punishment from the
Premier League after successfully arguing they were no longer within the
league's jurisdiction at the time of submitting their 2022/23 accounts, as the
team had already been relegated and taken up EFL membership.
Per The Guardian's report, the EFL have received assurances
they have grounds to charge the Foxes for the financial breach of £24.4
million, despite the club not competing in the EFL during the relevant
accounting period.
"The club had been charged with a £24.4m breach of the
£105m PSR loss limit by the Premier League, which based on the punishments
given to Everton and Nottingham Forest last season would have resulted in a
deduction of up to seven points if found guilty," the report states.
"The EFL is determined to ensure the regulations are
enforced and is understood to have received guidance that Leicester would fall
under its jurisdiction if relegated. The club officially joined the
Championship on 13 June 2023 before filing their accounts two and a half weeks
later."
Leicester lifted the Championship title ahead of Ipswich
Town and third-place Leeds United last season, winning promotion back to the
Premier League at the first time of asking, at the expense of Daniel Farke's
Whites.
Some Leeds supporters deemed Leicester's financial activity
to have given the East Midlands club an unfair advantage, allowing them to
compete at a higher level and retain star players, unlike what has happened at
Elland Road this summer where the likes of Crysencio Summerville, Archie Gray
and Georginio Rutter were sold to comply with PSR.
There is no statute of limitations for the EFL to abide by
when bringing charges for historical PSR breaches, meaning if Leicester are to
find themselves back in the Championship in 2025/26, they are likely to be
sanctioned.
If the club are found to have breached PSR for a separate,
secondary accounting period, such as between 2021 and 2024, they would likely
incur another penalty.