FOXES IN HOT WATER

Leicester City FC is under financial pressure after the English Football League (EFL) found the club to be on course to exceeding the Profit and Sustainability (P&S) limit by the end of the 2023/24 season.

In November, the EFL appointed an independent Club Financial Reporting Unit (CFRU), which asked Leicester to present a business plan by 1st March that would show the club’s compliance with the P&S rules.

Although Leicester has not exceeded this limit, the CFRU deemed that the Championship leaders were going to breach the EFL’s Profit and Sustainability (P&S) loss cap of £83m by the end of the three-year period.

The Foxes had previously argued that these rules should not apply to the club as the team played in the Premier League last season.

If Leicester’s financial reports reveal losses greater than the allowed limit once made public, the club could reportedly be subject to sanctions by the EFL, including point deductions.

Leicester could theoretically offset its current balance by means of selling players, an increase in revenue, or potential prize money should the Foxes secure promotion back to the Premier League at the end of the current campaign.

An EFL statement regarding the matter on 6th March said, ‘The CFRU determined that it was appropriate under P&S Rule 2.9 to require Leicester City FC to submit a business plan to demonstrate how it planned to comply with the EFL’s P&S spending limits.’

‘Leicester City is responsible for meeting its obligations in respect of the P&S Rules which will be assessed along with the submissions of all other clubs in accordance with the League’s established processes.’

In response, Leicester issued a club statement that read, ‘Although the club is pleased that the CFRP’s decision found in its favour, it is concerned that it was necessary for the CFRP to intervene in this way to prevent the CFRU from acting outside of established EFL rules.

‘Leicester City confirms it is in discussions with the football authorities regarding its profitability and sustainability calculations. Notwithstanding the CFRP’s decision, the club remains committed to seeking an appropriate overall outcome in this matter.’