Leicester feud with Premier League over spending rules could spill into next year: View

Championship title-winners Leicester are facing a possible points deduction after being charged with breaking Profitability and Sustainability Rules (PSR), but that verdict is likely to be months away.

Leicester were charged in March with the alleged breach and for failing to submit their audited financial accounts, and have vowed to defend themselves against “any unlawful acts by the football authorities”.

It is understood that the hearing may not take place until later this year, with the prospect of appeals and further legal procedures then prolonging the case into the second half of the season.

Everton and Nottingham Forest were deducted points last season for PSR breaches, and it appears inevitable that Leicester are also facing some form of punishment.

PSR allows clubs to make losses of £105m (€120m) over a three-year period: Leicester reported record losses of £92.5m from the 2021-2022 season and then an £89.7m loss for the latest accounts for the year ending June 30, 2023.

Sources have claimed that the sanctions could be significant, though Leicester believe they have a strong and realistic defence and are hopeful of being deducted no more than six points.

Leicester are expected to argue that the losses from the 2022-’23 season were a result of mitigating circumstances, such as an unforeseen relegation, the “unplanned expenditure” of sacking £8m-a-year manager Brendan Rodgers, plus an estimated £30m deficit from finishing 18th in the table.

Leading sports lawyer Nick De Marco and his legal team are defending Leicester and have vast experience of dealing with PSR, previously known as Financial Fair Play.

Leicester were initially charged in March and last month had a challenge rejected by an independent commission.

They had insisted the Premier League had no jurisdiction to sanction them as the club was in the Championship at the time. Leicester lodged an appeal against that decision.

The added complication in Leicester’s case is that they were charged for their last season in the top flight, and the rules have since been changed to “fast-track” similar charges.

Leicester are hopeful of avoiding breaches for last season after completing the £30m sale of Kiernan Dewsbury-Hall to Chelsea, while also banking £10m in compensation for manager Enzo Maresca before June 30.

Now under the management of Steve Cooper, Leicester kick off their new Premier League season at home to Tottenham on Monday. ​

Leicester and the Premier League both declined to comment.

Meanwhile, Manchester City’s hearing into 115 alleged breaches of Premier League financial rules has been brought forward to next month.

An independent commission had been expected to start in November, but it is reportedly now due to begin in mid to late September, unless there are further legal delays.

The hearing has been scheduled to last 10 weeks, with commission members expected to deliver their verdict at the start of next year. City deny all the charges.

Their separate legal case against the Premier League’s associated party transaction rules, where clubs broker sponsorship deals with businesses linked to their owners, is now expected to reach an outcome in the next few weeks.

It is claimed that has allowed the hearing into the 115 charges to be brought forward. The 115 alleged rule breaches are said to have taken place between 2009 and 2018.

It is still unknown how heavily City could be punished if found guilty, but points deductions and even relegation are thought to be possibilities.