Stefan Borson: Leicester set for ‘Big’ points deduction blow after hearing update

Leicester City could have waived their chances of seeing a potential points deduction reduced for mitigation after challenging their spending breach charge.

That is the view of finance expert Stefan Borson, who exclusively told Football Insider the newly-promoted side may have removed the possibility of mitigation for early admission and cooperation ahead of their likely points deduction next season.

Leicester were charged in March with a breach of the Premier League’s profit and sustainability rules (PSR) for 2022-23, but they argued they were no longer a top-flight club when they submitted their accounts on 30 June last year following their relegation.

It has now been revealed an independent commission has dismissed those claims and ruled they can be charged by the Premier League – a decision the club have appealed against.

Leicester reported losses of £89.7million in 2022-23, with top-flight sides only permitted to lose £105million over a three-year period.

Leicester could face two points deduction if appeal fails

Borson believes Steve Cooper’s side could be hit with two points deductions next season after they were believed to be close to the PSR limit again in 2023-24.

He told Football Insider: “If they lose the appeal, the big question will be around what mitigation have they got and whether these challenges they have made immediately remove the possibility of mitigation for early admission and cooperation.

“We know that’s worth between two and three points from the Nottingham Forest case.

“If Leicester have effectively waived that mitigation by challenging all this stuff, it’s quite a big hit to them.

“It will mean they are going to be quite limited on the other types of mitigation that they can appeal for.

“That will mean once you have a points deduction of around six to seven points, there aren’t that many ways they can reduce it. They could then end up with a sanction of around that level, so that’s a problem.

“Then there is also the knock-on problem, which is you’ve missed PSR by a large amount of money in 2022-23, the likelihood is that you’ll miss again heavily for 2023-24.

“The likelihood is that Leicester are going to have two breaches to deal with next season if they lose the appeal.

“That could be a pretty chunky points hit during the season. They quite possibly will have some issues with that.”

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