After being subject to a transfer embargo due to suspected violations of profit and sustainability rules, Leicester City intends to sue the Premier League and the EFL.
Consequently, what happened?
The Premier League filed charges against the Championship team for allegedly violating expenditure caps over their final three seasons in the top division. The Foxes risk losing points the next season after being sent to an independent commission on the purported PSR violation and their failure to provide audited financial statements. Now that the English Football League has put Leicester under embargo, the team has announced that they are pursuing “urgent legal proceedings” against the two organizations.
THOUGHTS FROM LEICESTER CITY
“LCFC has been compelled to issue two urgent legal proceedings against the Premier League and the EFL,” a statement from the club stated. LCFC will be requesting that a suitable and entirely independent legal panel decide each of these matters. The Club pledges to make sure that any accusations made against it are fairly and appropriately assessed, by the appropriate authorities, at the appropriate time, and in compliance with all relevant regulations.
“The relevant rules require that these proceedings be conducted confidentially; as a result, LCFC will not be able to comment further about them at this time. LCFC would prefer that the proceedings be in public so that its supporters and the wider world can be informed about the important issues of football governance that will be considered.”
“We reaffirm the Club’s view that we will fight for the freedom to pursue goals for Leicester City and all other teams, especially where those goals have been fairly and reasonably established through consistent athletic success.
The Club further observes that the EFL made public the news at 4 p.m. today, Friday, March 22, informing the public that LCFC has been placed under a registration embargo in accordance with its P&S regulations. The EFL is aware that, with more than 25% of the Club’s 2023–2024 reporting period left, LCFC has contested the EFL’s right to impose this restriction, which is both onerous and premature.”
THE LARGER IMAGE
Similar to what has happened to Everton and Nottingham Forest this season due to PSR violations, Leicester, who are now ranked second in the Championship and are vying for an early return to the Premier League, very much risk a points deduction the following season. The Foxes lost £92.5 million in the 2022–2023 season, and if they are unable to advance out of the Championship, they may face even more financial hardship after experiencing a significant decline in revenue following their relegation from the top flight in 2022–2023. A transfer embargo only serves to further dim their prospects.
Next?
Leicester, who will play their next game in the Championship on Friday, March 29, away against Bristol City, under Enzo Maresca, will keep pursuing these legal issues in the upcoming weeks and months as they build their case. Despite having a game in hand, they are currently tied for second place in the table with Leeds, the league leaders, on points.
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