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

Exclusive: Verdict on possible points deduction for alleged PSR breaches likely to be months away

Leicester’s bitter feud with the Premier League over an alleged breach of financial controls is threatening to drag on into next year.
Championship title winners Leicester are facing a possible points deduction after being charged with breaking Profitability and Sustainability Rules [PSR], but Telegraph Sport has learned that a 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. They 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 both 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 £105 million over a three-year period: Leicester reported record losses of £92.5m from the 2021-2022 season and then an £89.7 million 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 £8 million-a-year manager Brendan Rodgers, plus an estimated £30 million 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 £30 million sale of Kiernan Dewsbury-Hall to Chelsea, while also banking £10 million 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, Leicester are set to be without striker Patson Daka for around three months after he sustained an ankle injury in the pre-season friendly against Lens last Saturday.
Jordan Ayew, the Crystal Palace forward, is emerging as a potential signing with a £4m offer submitted on Tuesday. Ayew is regarded as an attacker with Premier League experience who can play in a number of forward positions.