Leicester City sues Premier League, EFL over spending rule breaches

Leicester City has initiated legal actions against both the Premier League and the English Football League (EFL) following allegations of breaching financial regulations. This development came after the club, which was demoted from the Premier League last season, was brought before an independent commission by the Premier League for not presenting their audited financial statements. The club expressed their discontent and surprise at this move, emphasizing their current status as a non-Premier League entity.

The legal disputes aim for resolution by an independent legal panel, as stated by Leicester in an official statement. The club is challenging a registration embargo imposed by the EFL under its Profit & Sustainability Rules (PSR), deeming it unjust and premature given that a significant portion of the 2023-24 financial reporting period remains.

Leicester reported a record loss of 92.5 million pounds for the 2021-22 season and a pre-tax loss of 33.1 million pounds the previous year. Premier League teams are allowed a loss limit of 105 million pounds over three seasons, but Leicester’s accounts for the last season have yet to be disclosed.

Should Leicester be found in violation of the spending regulations, they could face a points deduction, following the precedent set by Everton and Nottingham Forest. Despite their struggles in the 2022-23 season, which resulted in relegation, Leicester’s past achievements include winning the Premier League in 2015-16 and securing the FA Cup in 2021. Currently, under the management of Enzo Maresca, they are contenders for promotion back to the Premier League, being on par with league leaders Leeds United but with a match in hand.