Leicester City Facing New Points Deduction Threat Amid Financial Turmoil
Leicester City could be hit with another points deduction as concerns continue to mount over the club’s financial health.
The Foxes are still under investigation for allegedly breaching the Premier League’s Profit and Sustainability Rules (PSR) during the 2022–23 season. While they initially dodged a points penalty by exploiting a legal technicality, the matter remains unresolved, with arbitration ongoing.
The club’s financials have taken a major hit, with revenue plunging by £72 million last season—from £177 million in 2022–23 to £105 million—despite winning the Championship title. Although they managed to reduce their annual losses from £90 million to £19 million in 2023–24, they are still at risk of breaching the £105 million loss limit allowed over a three-year span for top-tier clubs.
Financial expert Stefan Borson told Football Insider that Leicester remain in PSR trouble this season due to the scale of their recent losses.
Currently sitting second-bottom in the Premier League table and 15 points from safety with just seven games left, Leicester appear destined for another drop to the Championship.
PSR Case to Move Under EFL Jurisdiction
Borson added that Leicester’s anticipated relegation will likely shift their PSR case to the EFL’s jurisdiction.
“Even if they’ve cleared the 2023–24 hurdle, the rolling three-year model means they’re still in trouble this season,” Borson said. “The issue will likely fall under the EFL’s control once they go down—and that’s when jurisdiction becomes even murkier.
“Leicester are really testing the boundaries between Premier League and EFL governance, becoming a true yo-yo club caught between both systems.”
Van Nistelrooy on the Brink
Meanwhile, former Manchester United scout Mick Brown has claimed that Leicester are preparing to part ways with manager Ruud van Nistelrooy after a dismal run of form.
Following their 3-0 loss to Newcastle United, Leicester have now suffered eight straight home league defeats without scoring—a record across all four divisions of English football. The team hasn’t scored at the King Power since a 2-2 draw with Brighton on December 8.
