Leicester City announce £89.7 million in losses: What happens now?

Leicester City announce £89.7 million in losses: What happens now?

02/04/24 20:27

Today Leicester City reported losses of £89.7 million for the 2022-2023 season which means their total losses over their last three Premier League campaigns to £215 million.

The profit and sustainability rules (PSR) of the Premier League only permit clubs to have losses of 105 million over a rolling three-year period.

This comes one month after being charged by the Premier league for breaching PSR in the same period.

Now with the information we have, we know they were £110 million over the losses allowed, which considering the position they were in during this period, they will have a much harder defence than Nottingham Forest or Everton.

Leicester were competing at the higher end of the Premier League, and played in Europe during this period, only getting relegated at the end in 2023.

The only defence they could make would be that they were financially planning for another season in the top flight, however, this is unlikely to be effective.

Jamie Vardy Leicester City

The Chief Executive of the Foxes, Susan Whelan has made a statement as the club announced their losses, saying:

"Having achieved finishing positions in the Premier League of fifth, fifth and eighth in the three preceding seasons, our targets and associated budgets for 2022-23 were entirely reasonable.

"However, for a club such as ours, whose sustained sporting achievements have justified the levels of investment required to compete with the most established clubs and pursue our ambition, a season of such significant under-performance on the pitch presents financial challenges, particularly from the perspective of the game's current Profitability and Sustainability rules."

Whelan clearly admits the situation as it is, showing that while there are reasons for their losses, as they had not prepared for a relegation season, that relegation has had its impact and this is it.

However, when certain costs were the club’s own fault, such as sacking Brendan Rodgers and also having the biggest wage bill outside the big 6 last season, it’s hard to sympathise with them.

Far more sympathetic situations with Everton and Forest were met with both 6 and 4 point deductions respectively and both may change for the worse before the end of the season.

So how will Leicester City be punished?

Well, they aren’t currently in the Premier League so that changes things as they can’t be charged this season.

However, given their league position in the Championship as they find themselves 2nd with 7 games to go, they are likely to get promoted back to the English top flight.

After promotion, I would expect their celebrations to be cut short by an official announcement by the Premier League as to how Leicester will return to the Premier League.

Taking into consideration the losses of Everton and Forest and their respective punishments, I would expect at least a 15 point deduction for Leicester as soon as they return to the Premier League.

This would be a massive blow to their survival chances as in the Premier League right now, 15 points is all that separates the teams between 14th (Crystal Palace) and 20th (Sheffield United).


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