Leicester charged with new financial rules breach

Getty Images
  • 1644 Comments

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.

Related topics

  • Leicester City
  • Premier League
  • Football

‘Even the Maldinis only have three generations!’

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.

only accessible to UK residents.

Watch Football Focus on Saturdays at 12:00 BST on BBC One, BBC iPlayer, BBC Sport’s website, and app.

Find the most recent Hove Albion and Brighton &amp news and views.

Holland back in Wales squad after Euros scare

Huw Evans Picture Agency

Liverpool forward Ceri Holland has been named in the Wales squad for the final Nations League group matches, two months after fears that she could miss Euro 2025.

Holland, 27, is part of a 26-strong squad named by manager Rhian Wilkinson for the decisive League A matches against Denmark in Odense on May 30 and against Italy in Swansea four days later.

The winger was taken off on a stretcher during Wales’ 2-1 defeat by Denmark in April but scans showed her leg injury was not as serious as first thought and she returned for Liverpool later that month.

The news came as a great relief to not only the player, who was in tears coming off the pitch, but to a Wales team preparing for its first major women’s tournament when they take on the Netherlands on 5 July in Lucerne, Switzerland.

Record cap-holder Jess Fishlock and striker Kayleigh Barton have also returned to Wilkinson’s squad for the upcoming Nations League matches.

To play this video you need to enable JavaScript in your browser.

Like Holland, 38-year-old Fishlock, who is in line to win a 161st cap, was a late injury withdrawal for the 1-1 draw away to Sweden. Barton, 37, also missed the trip as well as the Denmark game in Cardiff four days earlier.

But experienced goalkeeper Laura O’Sullivan-Jones does not feature after sustaining an ACL injury which has also ruled her out of Euro 2025..

Eighteen-year-old Aston Villa keeper Soffia Kelly has been called up in her place, one of three uncapped teenagers along with fellow stopper Poppy Soper and Bristol City forward Tianna Teisar.

Manchester United’s once-capped 18-year-old midfielder Mared Griffiths is also included.

To play this video you need to enable JavaScript in your browser.

Wales squad

Goalkeepers: Olivia Clark (Leicester City), Safia Middleton-Patel (Manchester United), Soffia Kelly (Aston Villa), Poppy Soper (Blackburn Rovers).

Defenders: Rhiannon Roberts (Real Betis), Josie Green (Crystal Palace), Charlie Estcourt (DC Power), Hayley Ladd (Everton), Gemma Evans (Liverpool), Mayzee Davies (Manchester City), Lily Woodham (Crystal Palace – on loan from Seattle Reign), Ella Powell (Bristol City), Esther Morgan (Sheffield United).

Midfielders: Alice Griffiths (Durham – on loan from Southampton), Angharad James (Seattle Reign), Lois Joel (Newcastle United), Carrie Jones (IFK Norrköping), Jess Fishlock (Seattle Reign), Mared Griffiths (Manchester United).

Related topics

  • Wales Women’s Football Team
  • Football
  • Women’s Football

Holland back in Wales squad after Euros scare

Picture agency for Huw Evans

Two months after rumors that Liverpool forward Ceri Holland might not play for Euro 2025, she has been chosen to play for Wales in the final Nations League group games.

Rhian Wilkinson has named a 26-person squad for the crucial League A games against Denmark on May 30 in Odense and Italy in Swansea four days later.

The winger was taken off on a stretcher in April’s 2-1 defeat to Denmark by Wales, but scans revealed she had a leg injury that wasn’t as serious as initially anticipated. She then returned to Liverpool later that month.

The news was a great relief for the Welsh team, which is gearing up for their first major women’s tournament against the Netherlands on July 5 in Lucerne, Switzerland, despite the player’s incense coming off the pitch.

For the upcoming Nations League games, Kayleigh Barton and record-holder Jess Fishlock have both made a return to Wilkinson’s squad.

JavaScript must be enabled in your browser to play this video.

Similar to Holland, 38-year-old Fishlock, who is in line to win the 161st cap, was a late injury drop for Sweden’s 1-1 draw. Additionally, Barton, 37, was unable to travel to the country or play for Denmark in Cardiff four days prior.

However, seasoned goalkeeper Laura O’Sullivan-Jones is sidelined for Euro 2025 due to an ACL injury.

Soffia Kelly, 18, one of three uncapped teenagers, along with fellow stopper Poppy Soper and Bristol City forward Tianna Teisar, has been called up in her place.

Mared Griffiths, a former Manchester United player of 18 years old, is also a part of the team.

JavaScript must be enabled in your browser to play this video.

Wales squad

Olivia Clark (Leicester City), Safia Middleton-Patel (Manchester United), Soffia Kelly (Aston Villa), and Poppy Soper (Blackburn Rovers) are the goalkeepers.

Rhiannon Roberts (Real Betis), Josie Green (Crystal Palace), Charlie Estcourt (DC Power), Hayley Ladd (Everton), Gemma Evans (Liverpool), Mayzee Davies (Manchester City), Lily Woodham (Crystal Palace – on loan from Seattle Reign), Ella Powell (Bristol City), and Esther Morgan (Sheffield United) are the defenders.

The midfielders are: Jess Fishlock (Seattle Reign), Angharad James (Seattle Reign), Lois Joel (Newcastle United), Carrie Jones (IFK Norrköping), and Mared Griffiths (Manchester United), Alice Griffiths (Durham, on loan from Southampton), and Angharad James (Seattle Reign).

related subjects

  • Women’s Football Team from Wales
  • Football
  • Women’s Football

Hughes to stay as Carlisle boss in National League

Features of Rex
  • 18 Comments

Following their transition from League Two to the National League, Carlisle United manager Mark Hughes will remain with the organization.

With Carlisle still five points off safety and 18 games to go, Hughes took over at Brunton Park in February.

However, the former Wales, Manchester City, and Fulham manager was unable to control the league, so they were ultimately relegated in their season-ending defeat at Cheltenham Town.

“I’ve been extremely grateful to the fans since I started playing back in February,” Hughes said on the club website.

Chairman Tom Piatak continued, “Mark brought the squad together in the final stretch of the season and gave us a fighting chance.”

We are confident in his ability to lead us forward because of his leadership, composure, and connection with the players.

In spite of their relegation, Hughes’ men’s side regained momentum for the end-of-season run-in, winning three games in a row for the first time in more than two years. They only lost once at home during his presidency.

related subjects

  • League Two
  • Carlisle United
  • Football
  • National League

Hughes to stay as Carlisle boss in National League

Features of Rex
  • 18 Comments

Following their transition from League Two to the National League, Carlisle United manager Mark Hughes will remain with the organization.

With Carlisle still five points off safety and 18 games to go, Hughes took over at Brunton Park in February.

However, the former Wales, Manchester City, and Fulham manager was unable to control the league, so they were ultimately relegated in their season-ending defeat at Cheltenham Town.

“I’ve been extremely grateful to the fans since I started playing back in February,” Hughes said on the club website.

Chairman Tom Piatak continued, “Mark brought the squad together in the final stretch of the season and gave us a fighting chance.”

We are confident in his ability to lead us forward because of his leadership, composure, and connection with the players.

In spite of their relegation, Hughes’ men’s side regained momentum for the end-of-season run-in, winning three games in a row for the first time in more than two years. They only lost once at home during his presidency.

related subjects

  • League Two
  • Carlisle United
  • Football
  • National League