Leicester City - FFP potential breach - The Numbers

[Charnwood]

Leicester City's financial situation has led to claims that the Foxes are set to be charged by the Premier League for breaching profit and sustainability rules (PSR), which could lead to a possible points deduction.

The Foxes are at risk of two breaches, with it previously reported that the club could face a charge over one of those breaches this week. For accounts covering three seasons in the Premier League, losses of £105m are allowable. If that figure is exceeded, there is the possibility of sanctions, including point deductions.

City’s accounts for the 2022-23 season are due to be published at the end of the month. For the two previous seasons combined, they made losses of £125.5m, meaning a profit of more than £20m would be required to avoid being over the threshold.

Having looked at the numbers they could just avoid any punishment but their huge wage bill may well tip the balance. In 2022/23 they made a transfer trading surplus of £61.95m mostly generated from the sales of James Maddison, Harvey Barnes, Tim Castagne and George Hirst that bagged the £106m.

This near £62m surplus plus other income would need to generate £20m of profit to avoid them breaching the £105m losses of 3 years rule. However their huge wage bill in 2022/23 rumoured to be in the region of £85m may well be their downfall.

All I can say is, If they can’t make a profit of £20m in a year when they made a transfer profit of £62m and had a full stadium every week, there’s not much hope for the rest of us.

[hallamblue]

comes down to excessive wages every time doesn't it ....These sanctions if metered out to Leicester will have little impact on them and their promotion bid this season. and when they go up , well they get handed yet another £200m dont they ? Ridiculous situation with how clubs are run these days, and if they think they can flout the rules and get away with it , they will ( and do, eg Man City , Chelsea )

[Bluemike]

What pisses me off is they have had an unfair advantage this season and as such the punishment should also be this season. I honestly think if we miss out to them we should seek legal advice.

[Charnwood]

What pisses me off is they have had an unfair advantage this season and as such the punishment should also be this season. I honestly think if we miss out to them we should seek legal advice.

As Lee Westwood said of Forest’s points deduction, they should appoint Man City’s lawyers to act on their behalf to lodge an appeal.

[Frosty]

Further BBC article on this

https://www.bbc.com/sport/football/68709502

Like all these issues they will come to head next season which doesn't help us if we narrowly avoid going up.

The FA needs to process these cases faster, there is too much at stake nowdays.

[Blued]

There should be a black & white criteria for when ffp rules infringements are enforced. We’ve already seen Nottingham Forest & Everton punished this season, so why is Leicester exempt? There seems to be too much room for impropriety in the execution of the laws. As a result, there can be a connotation of corruption…true or not.

[Bluemike]

It will be an absolute disgrace if they go up at the expense of anyone else, the punishment should be now, why should anyone be allowed to profit from rule breaking, of course they want another season in the Premier league and even more parachute payments, f**king joke.

[Ricco]

It will be an absolute disgrace if they go up at the expense of anyone else, the punishment should be now, why should anyone be allowed to profit from rule breaking, of course they want another season in the Premier league and even more parachute payments, f**king joke.

100%

I wonder if this story has affected the squad, it certainly coincided with their dip in form. If that's the case, the more noise our fans can make about this issue the better. It's a disgrace, and if they go up instead of us, it will/could do so much more harm to our club than it could to any of the other financially coddled Prem sides that the rules would actually assist next season.

[Bluemike]

Absolutely and this is why I believe legal discussions would have to be an option, the implications are humongous, I mean it what world do you make the offences in one season, profit from it, punish others and then get punished in a different season.