Leicester City have formally contested the six-point deduction handed to them for violating English Football League financial regulations.
An independent commission applied the sanction earlier this month, pushing the Foxes down to 20th place in the Championship table, where they were initially only above the relegation zone on goal difference.
Following back-to-back losses, the club has since slipped into the bottom three and now sits two points adrift of safety.
The Premier League, which first charged Leicester in May for breaching profit and sustainability rules (PSR) across the three-year period up to 2023-24, has also filed an appeal. The top flight are challenging the commission’s decision not to penalise the club for submitting their annual accounts late.
In a statement, the Premier League said it wants the process concluded quickly to provide clarity for clubs and supporters and intends for the matter to be resolved before the current EFL season finishes.
Both Leicester and the Premier League have submitted their cases to the chair of the judicial panel, who will appoint an appeal board to review the dispute.
The club label punishment excessive
Leicester, who confirmed the appointment of Gary Rowett as head coach on Wednesday, has not issued a fresh statement regarding their appeal.
However, when the points deduction was confirmed, the club described the sanction as excessive.
They acknowledged that the commission had reduced the scale of the original punishment sought by the Premier League but argued the final outcome still failed to reflect the mitigating circumstances presented. The club stressed the importance of those factors given the possible consequences for their objectives this campaign.
Under PSR guidelines, Premier League sides are limited to losses of £105m across three seasons, with the threshold reduced by £22m for each year spent outside the top division.
Financial losses and calculation disputes
Leicester’s financial report for the year ending 30 June 2024 recorded a £19.4m loss.
Previously published accounts showed a deficit of £89.7m for 2022-23, while the 12 months to May 2022 resulted in a club-record loss of £92.5m.
These totals exclude so-called “add backs”, which cover expenditures such as infrastructure projects and investment in women’s football that governing bodies consider beneficial to clubs more broadly.
Although the initial charge came from the Premier League, responsibility for the case transferred to the EFL following Leicester’s relegation. While the top flight retained jurisdiction, the sanction was imposed under EFL PSR regulations.
Leicester argued that their assessment should have covered 36 months rather than 37, citing the delayed submission of their 2023-24 accounts. The commission determined that the correct period was 36 months and concluded the club exceeded the EFL’s £83m limit by £20.8m.
While a deduction of up to 12 points was available, the panel reduced the punishment after considering the percentage by which Leicester had surpassed the threshold and noted the club’s improving financial outlook during the review period, settling on a six-point penalty.