Leicester City Faces Six-Point Deduction for P&S Rule Breach

Leicester City, currently competing in the Championship, has been handed a six-point deduction for violating the EFL’s profit and sustainability (P&S) rules for the 2023/24 season.

In an official statement, the EFL Board confirmed that it had convened to review the case and decided that the penalty would be implemented in the Championship standings without delay.

The club, which was relegated from the Premier League last season, is currently without a manager following the dismissal of Marti Cifuentes in January after only six months in the role.

The sanction was recommended by an independent commission and subsequently ratified by the EFL Board on Thursday.

This commission was established under Premier League regulations last May after an arbitration tribunal determined that the jurisdiction to investigate alleged violations of EFL rules could be transferred to the Premier League, following Leicester’s promotion to the top tier in 2024.

The commission found that Leicester City had exceeded the allowable P&S threshold by £20.8 million ($28.4 million) during the three-year assessment period concluding in 2023-24. Additionally, the commission identified that the club failed to submit its annual financial accounts to the Premier League when required.

Leicester City responded with a statement expressing disappointment regarding the independent commission’s decision, indicating that they will take the time to evaluate their next steps. The club argued that the penalty, as recommended by the commission, is “disproportionate” and does not adequately address the mitigating factors presented, which could significantly affect their sporting ambitions this season.

Previously, Leicester avoided a points deduction related to alleged breaches of the Premier League’s profitability and sustainability rules (PSR) for the 2022-23 season after an appeal was upheld in September 2024. In that instance, the appeal board concluded that the independent commission did not possess jurisdiction over the club, as it determined that the accounting period for 2022-23 ended more than a month after the club’s relegation.