Leicester charged with financial breaches during 2023–24 Championship season

Relegated Premier League side faces fresh accusations over financial conduct and potential points deduction.

A general view of the Leicester City corner flag during the Premier League match at King Power Stadium in Leicester, England, on May 18, 2025. Photo by George Wood/Getty Images

By Widya Putri and Randy Ahmad

Relegated Premier League club Leicester City have been officially charged with alleged financial breaches during their time in the Championship for the 2023–24 season. The charges relate to violations of the English Football League’s Profit and Sustainability Rules (PSR) and have now been passed on to an independent commission by the Premier League. If found guilty, the Foxes could face serious consequences, including a potential points deduction when they begin next season back in the second tier.

The announcement, made public on Monday, revealed that the matter was first under review by the EFL but later transferred to the Premier League once Leicester secured promotion to the top flight. A Premier League spokesperson confirmed the transition of authority and the nature of the charges against the Midlands club.

“Following an Arbitration Tribunal's decision concerning jurisdiction, Leicester City FC has now been referred to an independent Commission for alleged breaches of the EFL Championship Profit and Sustainability Rules for Season 2023/24,” said the spokesperson. “Additionally, the charges pertain to the club’s failure to provide full, complete, and prompt assistance to the League’s enquiries.”

The Premier League’s comments underline the seriousness of the accusations. While clubs are routinely expected to submit financial information and cooperate with governing bodies, Leicester’s alleged lack of transparency adds another layer of concern to the case.

The English Football League also issued a statement regarding the transition of the case. According to the EFL, the initial probe began after Leicester submitted their financial records in March 2024. However, due to their promotion at the end of the season, the responsibility for pursuing the case passed to the Premier League in accordance with established regulations.

“The EFL commenced an investigation into this reporting period following the March 2024 submissions,” the League stated. “As is permitted in accordance with EFL Regulations, jurisdiction passed to the Premier League at the conclusion of the 2023/24 season on the Club’s promotion. We will now await the outcome of the Premier League proceedings.”

In response to the formal charge, Leicester City issued their own statement, indicating a willingness to cooperate with the process while maintaining their position on jurisdictional concerns.

“The club intends to engage co-operatively in this matter now that the Premier League's jurisdiction has been established for the period ending FY24,” Leicester said. The club also reiterated its position regarding a prior dispute over the 2022–23 season.

Earlier in the 2023–24 campaign, Leicester successfully appealed against an attempt by the Premier League to charge them for profit and sustainability breaches committed during their final year in the top flight. The tribunal sided with Leicester, ruling that the Premier League did not have jurisdiction to pursue the matter while the club was competing in the EFL Championship.

“The club is pleased that it successfully defended the Premier League's challenge to the Appeal Board decision in relation to the PSR assessment period ending FY23, which was the main focus of these proceedings,” Leicester added. 

This fresh case represents yet another blow in what has been a disappointing season for Leicester, both on and off the pitch. Despite their storied recent history, including their miraculous 2015–16 Premier League title win, the Foxes have struggled to maintain consistency in the post-Brendan Rodgers era.

The club’s relegation from the Premier League was sealed earlier this month after a string of poor performances left them unable to escape the drop zone. Under the guidance of manager Ruud van Nistelrooy, who was appointed midway through the season, Leicester failed to mount a sufficient comeback. With just six wins from 37 games, they currently sit third from bottom and face Bournemouth in their final fixture of the campaign.

Van Nistelrooy’s own future is now under scrutiny, with reports suggesting the club’s hierarchy is divided over whether to retain him. While some see value in managerial continuity, others are reportedly frustrated with his inability to arrest the club’s decline and are considering other options for the 2024–25 season.

Potential penalties

The precise penalties Leicester could face if found guilty remain uncertain. However, points deductions are a common disciplinary measure for breaches of financial regulations. Depending on the timing of the ruling, any such punishment could be applied either retroactively or at the start of the 2024–25 Championship season. A deduction could severely hamper Leicester’s bid for an immediate return to the Premier League, compounding the club’s already precarious position.

The timing of the charges is also notable. They arrive just as English football continues to grapple with broader debates around financial regulation and competitive balance. The Premier League and EFL are under increasing pressure from the UK government and fans to enforce stricter oversight over clubs’ financial conduct, particularly after the collapse of historic clubs such as Bury and ongoing issues at others including Reading and Derby County.

Leicester’s case, involving multiple layers of jurisdiction and appeals, underscores the complexity and opacity that often characterizes football’s regulatory landscape. As governing bodies push for reforms, this incident may serve as a reference point in future discussions around governance, transparency, and financial accountability in English football.

For Leicester, the focus now shifts to preparing for what promises to be a pivotal off-season. The club must not only deal with the legal and regulatory implications of the charges but also rebuild a squad capable of competing for promotion under uncertain leadership.

With a fan base still reeling from relegation and anxious about the future, Leicester will need to demonstrate clarity and purpose in the weeks ahead. Whether that means sticking with van Nistelrooy or bringing in a new manager, and whether they retain key players or conduct a broader overhaul, remains to be seen.

What is clear is that the club’s return to the Premier League is no longer just a matter of on-field success. Off-field decisions — including financial strategy and regulatory compliance — will now play an equally crucial role in shaping Leicester City’s path forward.