Leicester appeal against six-point deduction

Leicester City have appealed against a decision to deduct them six points for breaching English Football League financial rules.

The sanction was imposed on the Foxes by an independent commission earlier this month and saw them drop to 20th in the Championship, only outside the relegation zone on goal difference.

Two successive defeats since have led to them dropping into the bottom three, two points from safety.

The Premier League, who initially charged Leicester with breaching profit and sustainability rules (PSR) in the three years up to 2023-24 in May, have also lodged their own appeal against the commission's decision not to sanction the club for late submission of their annual accounts.

"To provide certainty for all clubs and fans, the Premier League will be seeking to have the appeal resolved urgently, and in any event before the end of the EFL season," a Premier League statement said., external

Both parties have submitted their appeals to the chair of the judicial panel, who will now appoint an appeal board to hear the case.

Leicester, who appointed Gary Rowett as their new head coach on Wednesday, have yet to comment on their appeal.

But when the points deduction was announced, the club described it as "disproportionate".

"While the commission's findings significantly reduced the unprecedented scale of the sanction originally sought by the Premier League, the recommendation remains disproportionate and does not adequately reflect the mitigating factors presented, the importance of which cannot be overstated given the potential impact on our sporting ambitions this season," the statement said.

Under PSR, Premier League clubs cannot lose more than £105m over three years but the figure is reduced by £22m for every season a club spends outside the top flight.

Leicester's accounts for the period ending 30 June, 2024, showed a loss of £19.4m.

In their 2022-23 accounts, Leicester confirmed an £89.7m loss, while in the 12 months up to May 2022, they lost a club-record £92.5m.

Those figures do not take into account 'add backs' - costs such as building infrastructure and investing in women's football that the Premier League and EFL view as in general interests of clubs.

Despite being charged by the Premier League, the EFL took on the case following Leicester's relegation to the second tier.

Although the Premier League had jurisdiction, the Foxes have been sanctioned under EFL PSR rules.

Leicester had argued their case should have been considered over a 36-month period rather than 37 months, caused by a delay in submitting their accounts for 2023-24.

The commission ruled that it should be 36 months meaning the club's overspend of the EFL's rules during that period was £20.8m above the £83m limit.

Although a maximum 12-point penalty could have been imposed, the committee worked down based on Leicester's percentage overspend and settled on six in light of the club's "improving financial position" over the assessment period.

No one should be surprised that Leicester have appealed against their points deduction.

At no point have the Foxes admitted any wrongdoing, even with the evidence of their financial losses.

But this is a risky option as the appeal board can vary the penalty in any way. This includes increasing it, though that is believed to be unlikely.

Leicester's position fluctuated over the course of the original hearing.

At one stage the club said a points deduction should be held back until they returned to the Premier League.

Then they shifted and claimed the independent commission did not have power to impose any sporting sanction. Then they said a fine should be levied… which should be zero.

Leicester are likely to again say that as a Championship club they cannot be punished for a Premier League rule break.

The Premier League, meanwhile, feels there was a mistake in failing to deduct one point for the late filing of accounts.

Leicester were found guilty on this count. But the independent commission chose not to apply any kind of penalty.

The Premier League disagrees and argues there is a principle at stake. If rules are broken there should be consequences.

If a club are allowed to file their accounts late and effectively get away without any sanction it offers no precedent or deterrent.

The Premier League has appealed on the basis that a sanction should be applied, in effect that one-point deduction.

The outcome of the two appeals could decide Leicester's Championship status.