Leicester City's supposed PSR breach and how the club can fix it
Leicester City had been charged with a breach of Profit and Sustainability Rules (PSR) while being in the Premier League. It worsened with recent news. This is how the board can help remedy the situation and get back on track.
The previous charges have been contested by King Power, who hope the Foxes cannot be charged a points deduction and were technically outside of the jurisdiction of PSR for this EFL campaign due to not being within the Premier League. An independent commission will decide their fate, but the legal battle will be fierce as they hope to be given the leeway up until promotion is hopefully achieved.
Losses of £89.7m were reported for the 22/23 Premier League relegation campaign, following from a £92.5m for the 21/22 season. PSR allows a maximum of a £105m loss over a three-year period. Those two alone absolutely smash the allowance. The club have definitely breached financial regulations and are rightly going to be reprimanded by officiating bodies.
That is very concerning as this includes major player sales, and clearly has been negatively impacted by poor contracts and the firing of Brendan Rodgers which was costly for the club. I think even if Leicester City had managed to remain in the Premier League and had greater revenue, their losses would still have been high enough to fall under the hammer.
The contestation from King Power is when the Premier League can act, and view the charges as 'unlawful'. The hope is that the EFL is not compelled to impose a points deduction in the current promotion battle, and it is likely Leicester will at best get a large points deduction at the start of whichever next campaign they are in. Any points now could be fatal.