Leicester City hit with six-point deduction for breaching Premier League financial rules

Leicester City have been hit with a six-point deduction, after being found to have breached Premier League financial rules.

The punishment leaves the club, which was relegated from the Premier League in 2024/25, outside of the Championship relegation zone on goal difference only.

The point deduction relates to a breach of the EFL Profit and Sustainability Rules for the 2023/24 season, with the news confirmed on Thursday.

The Foxes were accused of failing to submit their annual accounts ahead of the 31 December deadline, the club were also accused of not meeting the standard of “providing full, complete and prompt assistance to the Premier League”.

Leicester had won an appeal in September 2024 concerning their first alleged breach of PSR, with a panel finding that the Premier League did not have the jurisdiction to punish Leicester, given the club has subsequently been relegated to the Championship after their accounting period ended on 30 June 2023.

Leicester’s financial turmoil saw them total losses of over £200m across the three-year rolling period ending 30 June, 2024.

That was £119m more than the permitted maximum of £81m under PSR regulations.

The Foxes had previously competed for a place in the Champions League under Brendan Rodgers, while their FA Cup triumph and a European semi-final underlined their success story even after their incredible title success under Claudio Ranieri in 2016.

Like Aston Villa, Newcastle and Crystal Palace, Leicester's stance centres around a punishment in their view for showing ambition. The PSR era came to an end after last month's January transfer window, instead, a new set of regulations, named Squad Cost Ratio (SCR) will help regulate spending in the top tier of English football.