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March 6, 2024
Leicester City faces severe financial risks, including the potential loss of points, due to its potential violation of the profit and sustainability rules set forth by the English Football League.
Financial constraints will probably force the need to sell players this summer. If a violation is discovered, it’s unclear when penalties will start to apply.
Based on their three-point lead in the Championship, the EFL believes Leicester is headed toward breaking this season’s financial regulations. After reviewing projections in November, the league’s Independent Club Financial Reporting Unit (CFRU) concluded that those numbers would constitute a violation.
The CFRU has determined that Leicester must submit a business plan to show how it intends to comply with spending limits. However, the club argued that the relevant financial rules only applied after they were in the Premier League last season.
Leicester was then required to submit its projected accounts for the 2023-24 season by March 1. According to EFL rules, clubs cannot exceed £39 million in losses over a three-year cycle, whereas the Premier League allows a maximum loss of £105 million in that same timeframe. Since Leicester was relegated to the Championship last season, their maximum permitted loss for the period up to 2023-24 is £83 million.
In 2018, Leicester agreed to pay the EFL £3.1 million to settle claims that they breached financial rules in the 2013-14 season. Queens Park Rangers settled with the EFL for £42 million after violating spending limits. After being promoted to the Premier League as champions in 2014-2015, Bournemouth was fined £7.6 million for breaching financial fair play rules and later reached a £4.75 million settlement with the league. However, the rules and parameters have evolved since those cases.
“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,” read an EFL statement.
According to a statement released by Leicester on Wednesday, the EFL’s financial reporting unit acted outside of its authority in dealings with the club.
Leicester added: “Leicester 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.”
Leicester is in the quarterfinals of the FA Cup and could make more money if they advance further in the competition. Also, some of their players, like Jamie Vardy, Kelechi Iheanacho, and Wilfred Ndidi, are out of contract at the end of the season and could be sold.
A sizable fire that started near St Mary’s Stadium a few hours before kickoff has postponed Wednesday’s Championship match between Southampton and Preston North End.
Eighteen fire engines responded to the fire, involving four industrial units just yards above the ground. Southampton stated: “The decision was made after consultation with the local authorities and emergency services. The incident has caused significant disruption in the area with road closures around the stadium still in place as fire crews continue to deal with the situation.”
“We are grateful for the cooperation of Preston and the EFL, and while we appreciate the disappointment fans may feel we hope they will understand the need to put the safety of supporters and staff of both clubs first.”
The Hampshire & Isle of Wight Fire Service advised people in the area “to keep windows and doors closed due to the amount of smoke.”
Chris Harwood shared video of the fire that was taken from north of the stadium on social media. The accountant Harwood, who is 25 years old, told PA Media: “We could see a large smoke cloud from our office in Ocean Village, Southampton at lunch so decided to walk towards it to work out where it was coming from.”
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Katarzyna Nowak is a seasoned writer with over five years of experience in editorial content, news reporting, and football sportsbook app reviews. As an author for Football News Today, she combines her deep understanding of the sports betting industry with a passion for football, delivering insightful and accurate content that keeps readers informed and engaged.
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