SAD NEWS: Leicester City might face charges next week for breaching financial rules in the Premier League.

Leicester City is facing potential repercussions for two alleged breaches of the Profit and Sustainability Rules in the Premier League. Reports suggest that the resolution of the first breach could occur as soon as next week.

Reports indicate that Leicester City could face charges for breaching Premier League financial regulations as early as next week. The club is under scrutiny for two potential breaches of the Profit and Sustainability Rules (PSR), covering the three-year cycles ending in the 2022-23 and 2023-24 seasons respectively. Initial focus will be on the former, with Sky Sports News suggesting that the club might be charged for a breach next week.

Under the PSR, Premier League clubs are permitted losses of up to £105 million over three seasons. Exceeding this threshold could result in sanctions, including point deductions.

Leicester City’s financial accounts for the 2022-23 season are scheduled for release at the end of the month. Combined losses for the preceding two seasons totaled £125.5 million, requiring a profit of over £20 million to avoid surpassing the allowable limit.

While breaching the £105 million mark doesn’t automatically signify rule violations, an assessment will be conducted to determine compliance.

Despite efforts to reduce expenses in the 2022-23 season, such as selling Wesley Fofana to Chelsea for £75 million and minimal signings, it remains uncertain whether these measures suffice to prevent a breach.

Similar breaches have led to charges against Everton and Nottingham Forest, with Everton initially facing a 10-point deduction, later reduced to six. If found guilty, Leicester City could face a similar fate, regardless of their Premier League status.

Additionally, there’s a risk of breaching PSR for the 2023-24 season, as revealed amidst a dispute with the English Football League (EFL). Although an independent panel found the EFL to have violated its own rules by demanding a cost-cutting business plan from Leicester City, the club acknowledged the risk of non-compliance.

To mitigate potential breaches, Leicester City may consider player sales before the financial year ends on June 30. However, the club has not yet provided a comment on the matter.