Leicester City have been hit with a six-point deduction by the English Football League (EFL) for breaching profit and sustainability regulations, dealing another blow to their difficult Championship campaign.
The penalty takes immediate effect, pushing the Foxes down from 17th to 20th place on the table. They now sit just outside the relegation zone on goal difference, increasing the pressure as the season progresses.
The punishment stems from financial charges initially brought by the Premier League in May, relating to breaches over a three-year period up to the 2023–24 season. However, following Leicester’s relegation from the Premier League last season, jurisdiction over the case shifted to the EFL, which assessed the matter under its own financial rules.
Leicester City have voiced strong dissatisfaction with the decision, arguing that the sanction is excessive.
In a statement, the club said the commission had reduced the scale of the penalty originally sought by the Premier League but insisted the final outcome still failed to properly account for mitigating factors.
“The recommendation remains disproportionate and does not adequately reflect the mitigating factors presented, the importance of which cannot be overstated given the potential impact on our sporting ambitions this season,” the club stated.
Leicester added that it is reviewing the ruling and considering its next steps, while reaffirming its commitment to a fair and proportionate resolution through the appropriate channels.
Under Profit and Sustainability Rules (PSR), Premier League clubs are allowed maximum losses of £105 million over three years, with adjustments made for time spent outside the top flight. Leicester reported a £19.4 million loss for the year ending June 2024, after recording losses of £89.7 million in 2022–23 and £92.5 million the year before.
The commission concluded that Leicester exceeded the EFL’s £83 million loss threshold by £20.8 million across a 36-month period. Although a 12-point deduction was considered, the panel settled on six points, citing signs of improvement in the club’s financial position.
On the pitch, Leicester are also dealing with instability, having dismissed head coach Marti Cifuentes in January. Former club captain Andy King is currently in charge on an interim basis and will lead the team into Saturday’s fixture against Birmingham City, as the Foxes aim to end a four-game winless streak and stabilize their season.