Leicester City are preparing to challenge the Premier League and the EFL after being placed under a transfer embargo for alleged profit and sustainability rule violations. What happened? The Premier League accused the Championship team with allegedly violating spending limits throughout their last three seasons in the top level. The Foxes, who were referred to an independent panel for alleged PSR violations and failure to submit audited financials, could face a points punishment next season. After being placed under an embargo by the English Football League, Leicester has disclosed that they are pursuing ‘urgent legal procedures’ against the two bodies.
What Leicester City Said According to a club statement, “LCFC has been compelled today to initiate two urgent legal proceedings against the Premier League and the EFL.” LCFC will request that each of these proceedings be decided by an appropriate and completely impartial legal panel. The Club is dedicated to ensuring that any charges levied against it are appropriately and proportionately determined, in compliance with applicable rules, by the appropriate bodies, and at the suitable time.
“While LCFC would prefer that the proceedings be held in public so that its supporters and the wider world are informed about the important issues of football governance that will be addressed, the relevant rules require that these proceedings be conducted confidentially, and LCFC will thus be unable to comment further at this time. “We restate the Club’s view that we will continue to fight for the right of Leicester City and all clubs to pursue their goals, especially if they have been reasonably and fairly established by consistent sporting performance.
“The Club further notes that at 4 p.m. today (Friday, March 22), the EFL published a public statement that LCFC had been placed under a registration embargo in accordance with its P&S guidelines. The EFL is aware that LCFC has challenged the EFL’s right to impose this constraint, which is both restrictive and premature, with more than a quarter of the Club’s 2023/24 reporting term remaining.”
Leicester, who are second in the Championship as they aim to gain a quick return to the Premier League, face the very real possibility of a points deduction next season, just as Everton and Nottingham Forest have this season for PSR violations. The Foxes lost £92.5 million in the 2021/22 season, and after experiencing a significant loss in revenue following their relegation from the top division in 2022/23, they could be in even greater financial trouble if they fail to get promoted from the Championship. Furthermore, a transfer embargo makes their prospects much bleaker.
WHAT IS NEXT? Enzo Maresca’s Leicester City, who play away to Bristol City in the Championship on Friday, March 29, will continue to fight their legal case in the following weeks and months. They are presently second in the league, tied on points with leaders Leeds, despite having a game in hand.
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