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Leicester City received a six-point deduction in the Championship after an independent commission found the club breached Profit and Sustainability Rules (PSR) for the 2023/24 season. The sanction took effect immediately and dropped the club from 17th to 20th place, leaving them outside the relegation zone only on goal difference.
Commission Recommends Points Penalty
An independent commission, appointed under Premier League rules, determined that Leicester City exceeded the permitted financial loss threshold by £20.8 million over the three-year assessment period ending in 2024. The Premier League initially sought a 12-point deduction. However, the commission recommended six points after considering mitigating factors, including the club’s improving financial position and a positive trend in FY24 finances. The EFL board ratified the recommendation on Thursday.
Club Acknowledges Decision with Disappointment
Leicester City issued a statement that expressed disappointment with the outcome. The club noted that the commission’s findings significantly reduced the unprecedented scale of the sanction originally sought by the Premier League. Nevertheless, Leicester City described the six-point deduction as disproportionate and argued that it failed to adequately reflect the presented mitigating factors.
Key Agreements from the Commission
The commission agreed with Leicester City’s position that compliance for FY24 should be assessed over a 36-month period. This ruling provided the club with certainty on its PSR/P&S compliance for FY25. Additionally, the panel found no aggravating factors to apply and acknowledged the absence of such elements, which Leicester City had maintained throughout the process.
Club Considers Next Steps
Leicester City stated that it would review the full decision and consider available options. The club emphasized its commitment to engaging constructively and ensuring any further action remained fair, proportionate, and determined through appropriate processes. The potential impact on the club’s sporting ambitions this season featured prominently in the statement.
Background to the Case
The case stemmed from Leicester City’s promotion to the Premier League in 2024, which transferred jurisdiction for the EFL breach investigation to the Premier League. An arbitration tribunal confirmed the Premier League’s jurisdiction in March 2025, leading to the commission’s referral in May 2025. A week-long hearing occurred in November 2025. The club also faced a separate breach for failing to provide annual accounts to the Premier League when requested. This sanction followed Leicester City’s earlier successful appeal against a different PSR charge for the 2022/23 period.
