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Leicester charged with new financial rules breach

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Nick Mashiter
BBC Sport football news reporter
Mandeep Sanghera
BBC Sport journalist
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Leicester City could face a future points deduction after being charged with an alleged breach of the English Football League’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.

What were Leicester’s losses?

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.

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.

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.

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.

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”.

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.

The EFL said it noted the referral of Leicester to the independent commission, having passed the matter to the Premier League.

How did Leicester find themselves in this position?

There are various reasons why Leicester have lost so much money in previous years, which still leaves them vulnerable now given the three-year assessment period.

They lost nearly £90m in 2022-23 as the club fell from eighth to 18th, resulting in relegation, but it was also a reduction of about £30-35m in prize money given finishing positions in the Premier League table are worth about £3m.

They budgeted for a higher finish, budgets which chief executive Susan Whelan said were “entirely reasonable” given previous top-five finishes.

A lack of European football was another factor, with the club qualifying for the Europa League and going on to reach the Europa Conference League semi-final in 2022.

Significant changes in the management have also been costly with the departure of Brendan Rodgers, along with his backroom staff, in 2023 expensive.

Leicester have handed out big contracts to players and have therefore been unable to move some on and, despite managing to make a £74.8m profit in player sales in 2022-23, they still lost a huge amount.

Analysis

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.

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Leicester referred over alleged EFL financial breach

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Images courtesy of Getty
Mandeep Sanghera
journalist for BBC Sport
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The Premier League has referred Leicester City to an independent commission after an alleged financial dispute involving the EFL between 2023 and the Championship season.

It’s unknown at this time when, how, and how that might be applied. The club could face fine and points deduction.

Two opposing decisions were at the heart of the tribunal’s decision.

The Premier League could not be held accountable for the Foxes for breaking Premier League profit and sustainability (PSR) regulations for the 2022-23 season because the club had been demoted from the top flight at the end of that campaign, so the tribunal upheld the ruling.

However, it also determined that the Premier League has jurisdiction to pursue an investigation into a club’s 2023-2019 violation of EFL rules.

The independent commission will also look into two additional alleged breaches by the Foxes, including the fact that they failed to give the Premier League’s accounts by December 31 and that they did not “provide full, complete, and prompt assistance to the Premier League in response to the league’s inquiries.”

Leicester, who have been relegated to the Championship for the second time in three years, stated: “The club intends to work together in this matter now that the Premier League’s jurisdiction has been established for the period ending FY24 (2024).”

How is this possible for the Premier League?

In September 2024, Leicester won an appeal against a alleged PSR violation for the 2022-23 season.

The Foxes were relegated to the Championship when their accounting period ended on June 30, 2023, so an independent panel determined that the Premier League had no authority to punish them.

Leicester claimed they had “simply sought to ensure that the rules are applied based on how they are actually written,” while the Premier League claimed at the time that it was “surprised and disappointed” by the panel’s decision.

In April, the Premier League made its rules stricter, allowing clubs to continue to be bound by them even if they were promoted.

The Premier League stated in a statement on Tuesday that the alleged breach is related to the assessment period that came to an end at the end of the 2023-2014 season.

Because the EFL legitimately shifted responsibility for its investigation to the Premier League in June 2024, when the club was promoted from the Championship, the tribunal established that the Premier League has the authority to investigate an alleged violation of P&amp, S Rules [PSR].

What regulations apply to PSRs?

The Foxes’ losses for the three years ending in 2023 and 2024 cannot exceed £83 million under the current regulations.

Premier League clubs can lose more than £105 million over the course of three years, but the figure is reduced by £22 million for each season spent outside the top flight.

For the period ending June 30th, 2024, Leicester’s most recent accounts revealed a loss of £19.4 million.

Leicester confirmed an £89.7 million loss in their 2022-23 accounts, while they lost a club record $92. 5 million in the 12 months leading up to May 2022.

Case history in Leicester

24 April 2023: Leicester change accounting period from 30 May 2023 to 30 June 2023

Leicester removed from the Premier League on May 28, 2023.

Leicester officially ceases to be a Premier League club on June 12, 2023.

30 June 2023: Accounting period for 2022-23 season ends

Leicester is charged by the Premier League on March 21, 2024, with breaking PSR rules for a three-year period ending in 2022.

Leicester’s lawsuit against the Premier League’s charge is due on March 22, 2024.

Leicester re-enter the Premier League on April 26, 2024.

Leicester wins the appeal against Premier League charges on September 3, 2024.

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Nigeria-First Policy Can Aid Local Industries, Attract Investments – Innoson

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Innocent Chukwuma, the founder of Innoson Vehicle Manufacturing (IVM), has expressed hope that the Federal Government’s recently approved “Nigeria First” policy will resurrect the country’s struggling local industries and draw in foreign investors.

According to Chukwuma, who spoke on The Morning Brief, a Channels Television breakfast program, the policy, which places a premium on using locally produced goods and services in all government procurement procedures, could be a turning point for Nigeria’s industrial growth.

Chukwuma, who has long advocated for indigenous manufacturing, highlighted the potential benefits of this policy for entice both domestic and foreign investors to establish businesses in Nigeria.

He claimed that more people will start businesses if the country’s policy on local manufacturing is strong. But it detertes investors when they learn that we, the producers, have endured a lot just to survive. More people will invest with this strategy. People from all over the world have been calling me to discuss how to use this opportunity in partnership.

When I learned about this policy, I was so happy. Because telling ourselves the truth is a good thing, Nigeria has now found a way forward. Nigeria will become great if we start being truthful with ourselves. This administration stands out from other ones because a lot of truth is being exposed, particularly when it is urging consumers to buy locally produced goods, he said.

How is it possible to work for an Innoson company in Nigeria while earning money there? You are paying their workers when you import. However, you are supporting your fellow Nigerian when you purchase locally produced goods. Nigeria provides for Nigeria.

READ MORE: “Nigeria First” Policy to Contribute 3trn to the Economy – Minister

A Manufacturing Hub in Africa

As long as the right conditions are created, the IVM founder noted that Nigeria has the potential to become a leading hub for African automotive production.

“I don’t believe Innoson should be the only one to do this,” I said. More people should join, please. The industry of industries is the motor manufacturing industry, with its many components. Some companies can start producing components, and Nigeria could be Africa’s center for motor manufacturing. That will aid our country,” he said.

He continued, “We’re not doing this for personal gain alone.” It’s about continuing to support our nation until it is great. There will come a point when you have enough money and stop working, as would be the case with money. However, we are creating a future for Nigeria.

Chukwuma confirmed that the plans are already being worked out when asked whether Innoson is considering listing on the Nigerian Stock Exchange to raise capital and scale operations.

He stated that the “we are 97% through the process of going public.” You don’t just enter and do it; it’s a process that’s almost finished. You’ll soon learn that Innoson is listed on the stock market.

According to him, there is growing international interest in the business as both foreign automakers and Nigerian investors express interest in partnering with IVM.

“Some foreign auto factories want to work with me because they like what I produce. I’m now in the position of deciding which partners are best for me because Nigerians want to invest as well. He said, “I’ve worked hard for this, so I have to make the right choice.”

Nigeria-First Approaches

The Federal Executive Council (FEC) gave the government’s “Nigeria-First” policy its approval on May 5 and places indigenous production first in public sector contracts.

Mohammed Idris, the minister of information and national orientation, stated that an executive order would soon support the policy.

“Without this policy, Nigeria always comes first in all procurement procedures,” he says. Without giving a clear and compelling reason, Idris told reporters at the State House in Abuja, “No foreign goods or devices that are already being produced locally will be purchased.”

He added that the policy is intended to “foster a new business culture that is bold, confident, and very Nigerian” and to encourage government investment in local industries.

Idris added that new guidelines that will favor local manufacturers and service providers have been directed to the Bureau of Public Procurement (BPP).

UK, France, Canada threaten ‘concrete actions’ against Israel over Gaza

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As Israel’s military continues to carry out its deadly campaign in the enclave, the United Kingdom, France, and Canada have threatened to take “concrete actions” against it. If this is not done, the United Kingdom, France, and Canada will immediately impose restrictions on aid.

“We vehemently oppose the expansion of Israeli military presence in Gaza. The leaders of the nations, Keir Starmer, Emmanuel Macron, and Mark Carney, issued a joint statement on Monday, &nbsp, which also condemned the West Bank’s expansion and warned of “targeted sanctions”.

After halting food, fuel, and medical aid in Gaza in early March, Israeli Prime Minister Benjamin Netanyahu claimed that the three countries had offered a “huge prize” to the Palestinian group Hamas, which is currently holding dozens of Israeli prisoners. He has launched Operation Gideon’s Chariots.

After nearly three months of total blockade, the three leaders criticized Netanyahu’s decision to allow a few trucks into the besieged enclave as “inadequate,” warning that the Israeli government was at risk of breaking international humanitarian law. On Monday, Israel reportedly allowed only a small number of trucks in.

They vowed to stand by while Israel engaged in “egregious actions,” highlighting the “abhorrent language” used by Israeli government officials, including Finance Minister Bezalel Smotrich, to force Palestinians out of Gaza, and highlighting the illegality of forced displacement.

The “number one” thing the three countries could do, according to Husam Zumlot, the ambassador of Palestine to the UK, was enraging Israel. “Some measures have been taken by the UK to suspend some arms exports. It is insufficient. He said it needs to be thorough and comprehensive.

Zumlot added that states should take legal action to hold “war criminals accountable.” He urged the people to “absolutely support our efforts at the International Criminal Court and the International Court of Justice.”

The UN’s special rapporteur for the occupied Palestinian territories, Francesca Albanese, questioned the intended purpose of the sanctions. “Targeting whom,” you ask? You must impose sanctions on the state. The prime minister is not the subject. She stated to Al Jazeera on Monday that this is the government’s entire business.

Jean-Noel Barrot, the country’s foreign minister, claimed on Tuesday that Israel’s partial lifting of the blockade on Monday was “totally insufficient.”

He claimed that the besieged territory had become “a death trap” due to discriminatory violence and the Israeli government’s blocking of humanitarian aid.

Al Jazeera’s Hamdah Salhut, a journalist from Amman, questioned whether international pressure would be beneficial for Netanyahu, citing his earlier statements that he wanted to “press on until … absolute victory” and that his nation was engaged in a “war of civilization against barbarism.”

They claim that the growing military ground offensive is their only chance to advance, she said.

“Cruelty amid genocide”

The three leaders made a statement in response to a statement from 23 nations, including the UK, France, and Canada, in which they demanded that Israel provide aid to Gaza and that the population be “starvated.”

The statement, which was made public on Monday, attacked Israel’s “new model” for aid, which would see the US-backed Gaza Humanitarian Foundation providing supplies under Israeli military protection. It stated that humanitarian aid should never be politicized.

According to the statement, which calls on Israel to let the UN and aid organizations continue their life-saving work, it puts beneficiaries and aid workers in danger, undermines the United Nations’ role and independence, and links humanitarian aid to political and military goals.

The statement was made before Tuesday’s meeting of European Union foreign ministers in Brussels, where it is anticipated that the bloc’s trade agreement with Israel will be being reviewed, according to Step Vaessen of Al Jazeera, who is based in Amsterdam, the Netherlands.

After one and a half years of bombardment of Gaza, the situation has changed, she said, with the result of this food blockade being a public outcry.

The world’s response to “nearly 80 days of broadcast starvation and cruelty amidst genocide” to pressure Israel to lift its siege was “outrageous and morally reprehensible,” according to Amnesty International, a human rights organization.

More than 73 people have been killed by Israeli drones in the Khan Younis refugee camp, including at least three children, as the world’s attention was drawn to Israel.

‘Even the Maldinis only have three generations!’

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Three Hinshelwood family members, the most recent of whom is making waves at Brighton, are listened to by Glenn Murray.

Harry Howell, Jack’s 17-year-old cousin, made his Seagulls debut in the 85th minute with a winner against Liverpool on Monday.

In York City’s National League play-off semifinal against Oldham on Tuesday, Jack’s father Adam is in charge.

This video was first posted in 2024, and it was updated.

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