More Misery To Come...Inside Leicester's PSR Nightmare And What Is To Come

More Misery To Come...Inside Leicester's PSR Nightmare And What Is To Come

It must be said that Leicester City have had a slow start to the current Championship campaign, and if their current mid-table standing wasn't bad enough, their season could be about to get a lot worse due to circumstances off the field.

It is the tenth anniversary this season of Leicester’s famous 5000-1 Premier League title-winning campaign, and the state of the club could not be more contrasting between then and today. Today, Leicester City find themselves sitting in twelfth position in the second tier of English football, and their chances of promotion straight back to the Premier League are decreasing week on week.

LEICESTER ARE DOWN 📉

From Premier League champions to relegation in 7⃣ years 🦊😰 pic.twitter.com/F8rFGBLl2f

— LiveScore (@livescore) May 28, 2023

Marti Cifuentes is thought to be under some pressure to keep his job at the King Power Stadium with the Foxes on a terrible run of form with only two wins in their last eleven Championship outings. The frustration from the fans is beginning to grow as they feel that their team should be performing at higher levels than they have seen so far this season.

A big worry for Leicester will be in January, when you’d imagine Premier League clubs will be looking at the likes of Abdul Fatwau and Jeremy Monga, and if Leicester are still struggling in the Championship, they may end up losing some of these players.

However, not only are Leicester struggling on the field, but it seems that the off-field dispute with the Premier League is set to come to an end next week. The Foxes are facing a hearing where they are contesting three new charges regarding breaches of the profit and sustainability rules (PSR) in the Premier League.

New: Leicester City’s Premier League charges to be heard next week. #lcfc charged with 3 alleged breaches of PSR. Massive few days in the season for Leicester and, perhaps, the Championship https://t.co/5GyZ0qGAqp

— John Percy (@JPercyTelegraph) November 18, 2025

The Premier League's PSR regulations state that clubs are allowed losses of up to £105 million over a three-year period. The Foxes exceeded these figures with losses of over £200 million reported over a three-year period which ended in June 2024. In those three years, the foxes made a record loss of £92.5 million in 2022 and a following £89.5 million in 2023.

There are many factors that have had an impact on these finances, such as relegation from the Premier League, sacking Brendan Rodgers and offering higher-value contracts out to players. It was reported that during the 2022/23 Premier League season, in which Leicester were relegated, they had the fifteenth highest wage bill in the whole of Europe.

It is poor decision-making such as this that fans feel has put the club in such a tragic situation in the current day, which could halt their rise back to the top division for years to come.

Leicester’s legal battle with the Premier League has been going on for over 18 months. In September 2024, they appealed their first PSR charge from the Premier League and won, as the panel judged that the Premier League lacked the authority to punish them. The well-known sports lawyer, Nick De Marco, helped fight Leicester’s case at that time, and he is going to try to help the club again in their hearing next week.

There are a few different outcomes that Leicester City could face following this alleged breach of the PSR regulations, but they will not find out until the end of the year at the earliest. They could face either a points deduction, a financial penalty or some sort of transfer restriction depending on the outcome of the case.

At this stage, it is looking likely that they will receive a points deduction in the region of 9 points, which could be huge when it comes to the end of the season in determining where they finish in the table.

Despite Leicester’s poor decision making and reasons behind the alleged breaches of the PSR regulations, it is a rule that could do with a reshape as it is constantly preventing teams from growing and competing with the so called ‘Big Six’.

BREAKING: The Premier League’s Profitability and Sustainability Rules (PSR) will remain in place for next season 🚨

They were set to be replaced by Squad Cost Ratio rules in the summer, but clubs agreed at a meeting in London today to stick with PSR for at least one more season. pic.twitter.com/YZ6KloC3yY

— Sky Sports News (@SkySportsNews) February 13, 2025

In previous campaigns, Everton and Nottingham Forest have been hit with points deductions for breaching these rules, and in the last few transfer windows, it has been difficult for teams such as Newcastle and Aston Villa to spend without selling assets from their academies, such as in the cases of Elliot Anderson and Jacob Ramsey.

This isn’t what fans of these teams want to see, as players rising from academies is such an important part of English football. This is becoming increasingly rare, as now these players are having to be sold for profit rather than playing for the club they grew up at.

In summary, Leicester City are in a dark period compared to the vast success they have seen over the last decade, winning the Premier League and the FA Cup and competing in all three UEFA competitions. Fans will have to sit tight as they wait until the end of the year to hear the outcome of this legal action, and on the field, the results need to improve quickly if they want a chance to bounce straight back up to the top flight.