Leicester City may have narrowly escaped a points deduction for the 2022-23 season, but the club’s financial woes are far from over. In fact, the Foxes are staring into the abyss, with a potentially catastrophic points deduction looming large for the 2023-24 season. According to finance expert Stefan Borson, Leicester City is precariously close to breaching the Premier League’s profit and sustainability rules (PSR), a mistake that could have disastrous consequences for the club.
The club’s allowable losses limit is unclear, with Borson suggesting it could be either £83million or £105million. If it’s the former, Leicester will be “very close” to breaching the rules, even after selling players like Harvey Barnes and Kieran Dewsbury-Hall.
The Rules: A Complex Web
The Premier League’s PSR rules are complex, with different limits applying to clubs based on their division. Championship clubs have a £13million limit, while Premier League clubs have a £35million limit per season, totaling £105million over three years. However, clubs that have spent part of the assessed period in the Championship may have their limit reduced.
Nottingham Forest’s Precedent
Nottingham Forest’s recent points deduction sets a precedent for Leicester City. Forest breached the PSR rules by £34million, resulting in a points deduction. If Leicester’s limit is £83million, they will face a similar challenge in making a profit and avoiding a breach.
The Consequences
A points deduction would be a significant blow to Leicester City, who are already facing a challenging season after relegation to the Championship. The club must navigate the complex web of PSR rules to avoid further punishment.
Expert Insight
Stefan Borson, a finance expert, exclusively told Football Insider: “The rules don’t seem to be that clear on whether the limit will be £83million or £105million… If it’s £83million, then I think it is safe to say that Leicester will be very close to breaching.”
Leicester’s Financial Struggles
Leicester City’s financial struggles are well-documented. The club has invested heavily in players and infrastructure, but relegation to the Championship has reduced their revenue streams. The sale of key players has helped to offset some of the losses, but the club still faces a significant challenge in meeting the PSR rules.
The Road Ahead
Leicester City must now navigate the complex PSR rules and find a way to make a profit or face the consequences. The club’s owners and executives will be working tirelessly to ensure compliance, but the road ahead is uncertain. One thing is clear: Leicester City’s financial fate hangs in the balance.