Leicester City have been charged by the Premier League over alleged breaches of the EFL’s financial rules for the 2023/24 season.
The three new charges, announced on Tuesday, relate specifically to last season when Leicester were in the Championship.
If found guilty the Foxes, who will play in the second tier again next term following relegation, could be handed a points deduction.
The club also revealed on Tuesday that they are in the clear over separate charges previously brought by the Premier League relating to the 2022/23 season, but they now face a fresh legal battle.
Leicester had originally been charged by the Premier League for alleged PSR breaches concerning the 2022/23 campaign.
An independent commission initially ruled that the Premier League did have jurisdiction in this case, however Leicester appealed against that decision on the basis that they were in the Championship when the charges were brought.
The Premier League contested Leicester’s successful appeal, and while the latest tribunal said it agreed with the Premier League in principle, it decided it would not overturn Leicester’s appeal, saying the League’s challenge fell below the threshold set by the organising body itself.
But, crucially, the Premier League has since changed its rulebook to close the loophole and prevent similar cases in the future.
So what are the new charges?
The conclusion of the case involving the 2022/23 financial year has allowed the Premier League to open new
proceedings following alleged breaches for the 2023/24 season.
Even though the club were in the Championship at that time, because the rules have been tightened, the Premier League now has jurisdiction to charge Leicester over those alleged breaches.
Leicester say they intend to “engage co-operatively” in the matter now that the Premier League’s jurisdiction has been established.
Why this means Leicester could face points deduction
Sky Sports News senior reporter Rob Dorsett:
“It’s worrying and could potentially mean that Leicester face a points deduction at the start of next season, beginning life in the Championship having been relegated.
“We will wait to see what that punishment will be (if there is one), and we don’t have any idea yet about the timescale that it will take for it all to be processed.
“You can see from the previous appeals and charges situation with Leicester against the Premier League that it can be a very lengthy process.
“So this may well go into the start of next season without Leicester knowing whether they’re going to have a points deduction or not. The Premier League is determined to pursue this one, as is the EFL.
“It shows how the two leagues have now aligned themselves in terms of rules to make sure that there are no loopholes and that clubs changing division, either through promotion or relegation, can still be charged.
“The fans will be relieved to hear that they will face definitely no punishment for the 2022/23 season, but they’re facing three charges for alleged breaches in the 2023/24 season.
“There will be that significant concern now for Leicester that they might start life in the Championship with a points deduction or at least start the Championship not knowing whether they’re going to get a points deduction further down the line.”
What the Premier League has said…
“Following an Arbitration Tribunal’s decision concerning jurisdiction, Leicester City FC has now been referred to an independent commission for alleged breaches of:
- the EFL Championship Profit and Sustainability Rules (P&S Rules) for season 2023/24
- the club’s obligation to provide its annual accounts to the Premier League by December 31 2024
- the club’s obligation to provide full, complete and prompt assistance to the Premier League in response to the League’s inquiries
“The arbitration proceedings looked at (a) the Premier League’s jurisdiction to investigate an alleged breach by the club of the EFL’s P&S Rules for Season 2023/24; and (b) a previous appeal board decision regarding the League’s jurisdiction in respect of a breach of the Premier League’s Profitability and Sustainability Rules (PSR) for season 2022/23.
“In summary – regarding (a), the tribunal decided that the Premier League has jurisdiction to investigate and refer the club to an independent commission for an alleged breach of the EFL’s P&S Rules. The alleged breach relates to the assessment period concluding at the end of the 2023/24 season, when the club was a member of the EFL Championship. The tribunal confirmed that the Premier League has the power to investigate an alleged breach of the P&S Rules because the EFL validly transferred responsibility for its investigation to the Premier League in June 2024, when the club was promoted from the Championship. The Premier League continues to have jurisdiction even though Leicester City will be relegated to the Championship at the end of this season.
“Regarding (b), the Premier League challenged, via arbitration, an appeal board decision made in August 2024. The appeal board had ruled that the Premier League did not have jurisdiction to charge the club for an alleged breach of PSR. This was because the club was no longer a member of the League at the time of its accounting year-end date in 2023. The appeal board had overturned an earlier independent commission decision that the Premier League did have jurisdiction. While the arbitration tribunal decided that the appeal board was wrong, they found the appeal board’s decision was not a perverse interpretation of the law (which was the relevant test to overturn the decision), and therefore dismissed the Premier League’s claim.”
What Leicester have said…
“Leicester City FC notes the tribunal decision which has been published today (Tuesday May 20 2025).
“The club is pleased that it successfully defended the Premier League’s challenge to the appeal board decision in relation to the PSR assessment period ending FY23, which was the main focus of these proceedings.
“The Premier League’s own rules provide a deliberately high threshold for any challenge to the decision of an appeal board. In this case, the appeal board’s decision was only capable of being overturned if it could be shown to have resulted from a ‘perverse interpretation of the law’ or was a decision ‘which could not reasonably have been reached’.
“The appeal board decision was reached by a highly experienced panel (including two former Court of Appeal judges) and, although the tribunal may have disagreed with the decision, it dismissed the Premier League’s challenge, finding (consistent with the arguments made by the club all along) that the appeal board decision ‘could not sensibly be seen as resulting from a perverse interpretation of the law’.
“The tribunal also concluded that the Premier League was successful in establishing jurisdiction on one of the two grounds argued by the Premier League with respect to the assessment period ending FY24, and the Premier League has now referred this to an independent commission.
“Consistent with its previous commitments, the club intends to engage cooperatively in this matter now that the Premier League’s jurisdiction has been established for the period ending FY24. However, we will not be able to comment further on these proceedings until they are concluded, due to their confidential nature.”
What the EFL has said…
An EFL spokesperson said: “The EFL notes that the Premier League has today referred Leicester City to an independent commission for an alleged breach of Profit and Sustainability Rules for the period ending season 2023/24.
“The EFL commenced an investigation into this reporting period following the March 2024 submissions and as is permitted in accordance with EFL regulations, jurisdiction for that passed to the Premier League at the conclusion of the 2023/24 season on the club’s promotion.
“We will now await the outcome of the Premier League proceedings and until then are not able to comment any further on the matter.”
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