Leicester City hit with major points deduction after £200m loss and financial rule breach: report

LEICESTER, ENGLAND - FEBRUARY 25: The official Leicester City badge ahead of the Premier League match between Leicester City and Arsenal FC at The King Power Stadium on February 25, 2023 in Leicester, United Kingdom. (Photo by Joe Prior/Visionhaus via Getty Images).

The Foxes go into this weekend's round of Championship fixtures just outside the relegation zone on goal difference after the verdict was delivered on Thursday.

According to The Telegraph, Leicester were found to have made losses of £200 million in the three-year accounting period up to June 30, 2024.

Clubs in England's top two divisions are permitted to lose a maximum of £105 million over a three-season period. This figure is lower for teams competing in the Championship for a partial or full duration of the relevant accounting period. In Leicester's case, the club's loss limit for period 2021-2024 was £81m.

Leicester City hit with points deduction for PSR breach

The Leicester City badge painted on a wall in the stands at the King Power Stadium (Image credit: Alamy)

Leicester won a previous appeal in September 2024 when an independent panel ruled that the Premier League did not have the requisite jurisdiction to punish the club for an alleged PSR breach because they had already been relegated to the Championship when the accounting period came to an end on June 30, 2023.

However, the Foxes were unable to bring the club's financial reports into line for the period beginning July 1, 2021 and ending June 30, 2024. It was during this time, The Telegraph claim, that Leicester suffered combined losses of over £200m.

Leicester were crowned unlikely Premier League champions in May 2016 (Image credit: Getty Images)

The Midlands club are currently manager-less after parting company with ex-Queens Park Rangers boss Marti Cifuentes.

Leicester were relegated from the Premier League last season and have struggled to mount a promotion bid in the Championship this term.

Now saddled with a six-point deduction, against which the club can appeal, the team are 20th in the Championship table, level on points with Blackburn Rovers and West Bromwich Albion.

All three are now threatened by relegation to League One - the third tier of English football.

Fellow Championship side Sheffield Wednesday were earlier this season hit with a 12-point deduction for entering administration, followed by a further six-point penalty for 'multiple breaches of EFL Regulations relating to payment obligations'. The Owls are currently rock bottom of the division, destined for the drop.