by Leicester City have hit out at the Premier League after becoming the fourth club accused of breaching Profitability and Sustainability rules.
Claudio Ranieri’s 2016 title winners Leicester say they are “extremely disappointed” at the League’s decision to refer them to an independent commission, raising the prospect of a hefty points deduction next season.
In a scathing statement issued shortly after the accusation, Leicester insisted they “will continue to defend themselves against any illegal actions by the football authorities”.
They also said that the Premier League does not have the power to impose any sanctions this season.
Leicester are believed to be extremely unhappy with the timing of the statement and are determined to ensure it does not destabilize their promotion bid.
Telegraph Sport reported last week that Leicester would be charged this month and it was confirmed at 6pm on Thursday night, while the Premier League also claimed the club had failed to submit their audited financial accounts.
The charge covers the monitoring period up to and including the 2022-23 season, which ended with Leicester’s relegation.
‘extremely disappointing’
Currently second in the Championship under Enzo Maresca, Leicester are expected to publish their official accounts for 2022-23 next week, and are expected to take further losses beyond the £105 million allowed over a rolling three-year period.
Last year they announced record losses of £92.5 million for 2021-22.
Regardless of the potential penalty in the event of promotion, Leicester will be under pressure to raise funds through player sales before the end of the financial year on June 30.
Kiernan Dewsbury-Hall, Mads Hermansen, James Justin and Harry Winks are likely to emerge as targets for rival clubs.
Leicester’s statement read: “Leicester City is shocked by the actions taken by the Premier League today.
“The club is very disappointed that the Premier League has now chosen to cut LCFC, despite the club’s efforts to engage constructively with the Premier League in relation to the matters that are the subject of this charge, although LCFC is not a Premier at the moment. League club.
“LCFC remains willing and eager to engage constructively with the Premier League and the EFL to find a proper resolution to any potential charges, by the right bodies, and at the right time.
“The club continues to take careful advice on its position and, if necessary, will continue to defend itself against any unlawful actions by the football authorities, should they seek to exercise jurisdiction where they cannot, as happened earlier this year.”
The delay is a result of Leicester’s relegation sanction which took place last May before new rules were introduced at the Premier League’s annual meeting following the end of last season.
At that meeting the 20 clubs, including the three newly promoted clubs, decided that any breaches of the profitability and sustainability rules must be brought to an end within the same season since the relevant accounts were submitted.
Earlier this month it was revealed that the Football League had failed in an attempt to implement a business plan for Leicester amid concerns about their accounts this year.
Nick De Marco, the sports lawyer, has defended Leicester in legal proceedings so far.
The Premier League statement said: “The Premier League has today referred Leicester City FC to an independent Commission for an alleged breach of the Profitability and Sustainability Rules (PSRs) and failure to submit their audited financial accounts to the League.
“The alleged breach relates to the assessment period ending in Season 2022-23, when the club was a member of the Premier League.
“Leicester City were being promoted to the EFL Championship prior to the introduction of the Premier League’s new Standard Guidelines, which prescribe a timeline in which PSR cases should be heard. Therefore, the proceedings will be conducted according to a timetable set by the independent Commission, and its final decision will be published on the website of the Prime Minister.
Manchester City, Everton and Nottingham Forest have already been charged with alleged breaches of PSR, formerly known as Financial Fair Play.
Everton were docked ten points in November, which was reduced to six on appeal, and face an additional penalty for the second charge.
Forest were penalized with four points on Monday, and have until next Monday to decide whether they will appeal.
Leicester’s nine-year run in the Premier League ended last year when they finished third.
After winning the league, they also competed in the Champions League, Europa League and Europa League.
In 2021, under Brendan Rodgers, the club lifted the FA Cup for the first time in its history.
Leicester have nine games left in the Championship and will return to action on Friday week with a final at Bristol City.
