The Premier League initiates an inquiry into purported breaches of Profitability and Sustainability Rules by Leicester.

Football

Leicester City is facing allegations of failing to submit their audited financial accounts to the Premier League for the 2022/23 season. Nottingham Forest received a four-point deduction for breaching the Profitability and Sustainability Rules (PSR) earlier this week. In response to the Premier League's charge, Leicester City has issued a robust statement.

The Premier League has accused Leicester City of breaching the Profitability and Sustainability Rules (PSRs) and failing to submit their financial accounts. Leicester, currently second in the Sky Bet Championship with a game in hand on leaders Leeds, may potentially face a points deduction in the future if found guilty. However, any penalty would not be applied this season. The Premier League's statement indicated that Leicester City has been referred to an independent Commission for the alleged breach, concerning the assessment period ending in the 2022/23 season when the club was in the Premier League.

Leicester City, having been relegated before the Premier League's implementation of new Standard Directions, will have their case handled according to a timetable set by the independent Commission. The club's accounts for last season, expected to be released later this month, may reveal breaches of the permitted £105m losses over the previous three seasons.

Similar breaches by Everton and Nottingham Forest led to charges from the Premier League, with Nottingham Forest receiving a four-point deduction and Everton potentially facing a similar penalty. However, Leicester City, despite being within the rules for a Championship club to be penalized for Premier League rule breaches, will not face immediate sanctions this season. This exemption is due to the new fast-track rules introduced after Leicester's relegation, which do not apply retroactively.

The process of arranging an independent disciplinary commission, conducting hearings, and delivering a judgment is expected to extend beyond the summer, allowing Leicester City time to engage with the Premier League and the EFL for a resolution. Leicester City expressed surprise and disappointment at the timing of the charge, emphasizing their willingness to engage constructively with the authorities. The club remains committed to seeking a proper resolution and defending itself if necessary against any perceived unjust actions by football authorities.