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Leicester City are reportedly facing two separate points deductions this season for breaching spending rules, according to The sun.
The club is under investigation for breaching financial expenditure regulations and could face two separate investigations.
One of the investigations stems from Leicester’s compliance with Profitability and Sustainability Rules (PSR) during their time in the Championship.
The fallout could significantly impact Leicester’s Premier League campaign, where they will be looking to compete with England’s top teams.
The Profitability and Sustainability Rules (PSR) are designed to ensure that clubs do not spend more than they earn, protecting them from financial crises and maintaining competitive balance in the league.
Leicester City are reportedly facing two separate points deductions this season for breaching spending rules (archive image from team training used above)
Leicester will begin their season at home against Tottenham under manager Steve Cooper
In the UK, clubs can report losses within a specific limit, beyond which they face penalties such as fines or points deductions.
Leicester’s financial problems could be linked to their significant spending in recent years, both in terms of transfer fees and player wages.
They could face a situation comparable to Everton, who received two separate points deductions for excessive financial spending over successive three-year periods.
Everton were initially given a ten-point penalty reduced to six on appeal for infringements spanning the 2021-2022 period. However, they were later hit with a further two-point deduction for the subsequent period in 2022-2-23.
Leicester, after being charged by the Premier League in March, are under scrutiny for exceeding the £105m loss limit for the financial period ending in 2022-23.
Sin embargo, tThe case against Leicester City has been delayed after the club launched a legal challenge, arguing that the Premier League did not have jurisdiction to prosecute them while they were competing in the Championship.
The charges relate to financial losses to Leicester of £215.3m between 2020 and 2023, exceeding the £105m limit.
The EFL had already begun investigating the club’s finances for the 2023-24 season, predicting further overspending.
While an attempt to enforce an EFL-administered business plan was overturned on appeal, Leicester faced a transfer ban last season.
Sources have indicated that the Premier League is likely to push for two separate points deductions to be implemented.
The Premier League has yet to comment on the ongoing legal proceedings with Leicester.
The Premier League has yet to comment on the ongoing legal proceedings.
Meanwhile, Leicester are preparing to kick off their season at home against Tottenham under new manager Steve Cooper.
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