It is reported that Leicester did not submit their audited financial records to the Premier League for the 2022–2023 season; earlier this week, Nottingham Forest received a four-point deduction for violating the PSR; Leicester responds forcefully to the Premier League allegation.
It’s understood that if an independent committee determines that Leicester’s late submission of their records constituted a lack of cooperation, they could face harsher sanctions than the four points Nottingham Forest received.
Leicester has been placed under a transfer embargo by the Premier League, which has penalized the team for allegedly breaking the Profitability and Sustainability Rules (PSR).
If it is determined that Leicester violated the financial rules, the team might lose more points than Forest—which is presently second in the Sky Bet Championship on goal differential—but not this season. They still have a game left against leaders Leeds.
Nonetheless, Leicester may contend that the Premier League lacks the authority to demand early access to those club funds because they are a Championship team.
According to a release, “LCFC will be requesting that a suitable and entirely impartial legal panel decide each of these procedures.
“The club is committed to ensure that any charges against it are properly and proportionately determined, in accordance with the applicable rules, by the right bodies, and at the right time.”
Regarding their transfer ban, Leicester stated: “The EFL is aware that LCFC has disputed the EFL’s entitlement to impose this constraint, which is both restrictive and premature, with more than a quarter of the club’s 2023/24 reporting period remaining.”
Due to what the independent panel described as Forest “admitting the breach at the first opportunity” and cooperating in its complete submission of records, its original six-point loss for breaking the profit and sustainability requirements was lowered to two points.
Although the club’s “failure to submit their audited accounts to the League” was mentioned in the Premier League charge made against Leicester on Thursday, it may be viewed as aggravating circumstances when the commission determines what, if any, punishment is appropriate.
There is no deadline for Leicester’s hearing, in contrast to the recent points-deduction cases involving Forest and Everton, when it was necessary for an independent commission hearing to hear the case within 12 weeks of a charge being brought.
The administrator in charge of the independent commission hearing will now get in touch with the Premier League and Leicester to arrange a time that works for everyone and allows time for each party to prepare for the hearing.
The independent commission is also free to determine when a penalty should be served; however, as we have previously reported, it is highly unlikely that Leicester will lose points this season as they aim to advance from the Championship due to the length of time it takes to follow the proper procedures.
Following Leicester’s relegation, Premier League clubs voted through new “fast-track” rules last summer, which penalized Forest and Everton.
The deadlines for the commission hearing are flexible because they are not subject to those new regulations.
The Premier League feels that any PSR breach should be met with sporting sanctions, as was the case with the points deductions given to both Forest and Everton. The commission will ask the club and the Premier League what they believe is an appropriate response after reviewing the case.
In those instances, the League also expressed their belief that a PSR violation did not warrant a suspended penalty; they are probably going to feel the same way about Leicester.
The severity of Leicester’s violation, which won’t be known until the team files its accounts with Companies House later this month, will also play a significant role in determining the club’s punishment.
