Leicester City FFP charge proves Nottingham Forest right as Premier League problem clear

Leicester were officially charged with an alleged breach of financial rules this week, and while there should be some responsibility taken, it only highlights how the rules maintain the closed shop at the top of the Premier League.

Leicester City and Nottingham Forest are not two teams you expect to agree very often, but that is the case when it comes to matters of the Premier League’s Profitability and Sustainability rules.

Less than a week ago, Forest were deducted four points by the league for a breach of the rules for the period ending in 2022/23. The Reds have launched an appeal against the decision.

When the deduction was announced, Forest released a strong statement on the rules and how they impact on the ‘integrity and competitiveness’ of the Premier League, especially for new clubs trying to compete. City’s strong statement on Thursday made a similar point.

“LCFC has repeatedly demonstrated its commitment to the P&S (Profit and Sustainability) rules through its operating model over a considerable period, achieving compliance while pursuing sporting ambitions that are entirely credible given the consistent success that the Club has achieved in that time, both domestically and in European competition,” it read. “As we continue to represent the Club’s position, we will continue to fight for the right of all clubs to pursue their ambitions, particularly where these have been reasonably and fairly established through sustained sporting achievement.”

It’s the point raised by the two clubs that is the main problem with the rules. Leicester are a prime example; in the summer of 2023 the club cut back on spending in the transfer window due to PSR restrictions.

That led to the sale of then-club captain Kasper Schmeichel without a direct replacement being brought in. The only incoming that summer was the deadline day signing of Wout Faes, which only happened following the £70 million sale of Wesley Fofana to Chelsea.

The lack of transfer activity that summer had a direct impact on performances on the pitch, which eventually led to relegation at the end of the season. It, of course, wasn’t the only factor, but it made a big contribution.

So, how can a team who made a £55 million profit that summer and are still in breach of rules expected to compete with teams such as Chelsea who were able to spend £251 million and not be in breach?

The Blues went on to spend another £434.5m the following summer. It’s no surprise that they are close to the limit themselves. But the fact that they’ve got so much wriggle room for mismanagement in the transfer windows only makes the hopes of clubs to break into the monotonous big six even harder.

For City, the window that made the difference came in 2021, where money was spent on new recruits and no big sale was made. That window should have been managed better, as should the situation since in order to avoid the scenario we’re in now and there should be some accountability. But Leicester aren’t the only ones in the situation which maybe says something about the rules as well.

Back in 2020, the Independent shared a quote from a senior figure from the Premier League’s ‘big six’: “We don’t want too many Leicester Citys,” they said, referring to the 2016 title win.

“Football history suggests fans like big teams winning,” they continued. “A certain amount of unpredictability is good, but a more democratic league would be bad for business.”

That quote sums up where the PSRs are taking the Premier League with the gap again growing. Leicester are not the first, and probably won’t be the last ambitious club trying to compete at the right end of the table to be hit with charges.

If the rules aren’t changed, we could even get to the point where clubs will weigh up the risk of taking a points deduction just to be able to build a squad that can compete in the league. Realistically, one big player could make up four or six points in just a couple of games.

Do we really want a Premier League where there are two or three teams starting on minus points every season? If the rules don’t change, that’s where we could head.

Leicester’s story gave the so-called ‘smaller clubs’ the right to dream that they could take on and beat the ‘big six’. But that seems like a pipe dream for clubs at this moment due to rules which aren’t fit for purpose.