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Championship team Leicester City faces a possible points punishment next season if the league finds the Foxes guilty of an FFP violation. The rules in consideration are the Profitability and Sustainability Regulations (PSR).
The English Football League (EFL) considers Leicester City to be in danger of violating season-specific financial regulations. Although March 1 was the deadline, the club has still not submitted its 2023-24 finances.
The EFL requested a financial plan from Leicester in November, anticipating the club would exceed allowed losses this season. In Wednesday’s regulatory hearing, Leicester prevailed against the league, citing the lack of authority for the request.
Allegedly, Leicester exceeded deficit standards last year. However, Leicester was exempt from sanctions. The club dropped down from the Premier League, which has major implications for the club’s finances. This accusation comes from teams who compete with Leicester in the English second division.
Financial body says Leicester threatens FFP violation
According to the league’s CFRU, the independent club financial reporting body, they are expecting a numbers breach.
“Earlier this season, based on financial information submitted by the Club, the EFL’s independent Club Financial Reporting Unit (CFRU) concluded that the Club was forecasting to breach the Profitability and Sustainability (P&S) loss limits for the three-year period ending with the financial year 2023/24.
“The CFRU determined that it was appropriate under P&S Rule 2.9 to require Leicester City Football Club to submit a business plan. That is to demonstrate how it planned to comply with the EFL’s P&S spending limits. The Club argued that the relevant P&S Rule did not apply to it, meaning the CFRU had no right to require a business plan in respect of Season 2023/24.
“That matter was referred by the Club to the independent Club Financial Reporting Panel (CFRP). It concluded that under the…
Source link : https://worldsoccertalk.com/news/new-everton-leicester-risks-point-deduction-for-ffp-violation
Author : Martina Alcheva
Publish date : 2024-03-07 19:32:23
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