Leicester at risk of another Premier League PSR charge over latest accounts

[Number 6]

Reading the rules there is no mention of a reduction in losses for T, so we are aiming for a £105m loss at most. I know Swiss says that doesn't make sense but the rules are pretty clear on that.

 

So say someone like Sunderland got promoted and stayed up their allowable losses over 3 year periods would go £61m, £61m, £83m, £105m.

 

Looks like it has been set up to prevent someone having a £39m limit. Means if we stayed up the limit would be £81m next season though.

 

Edit: don't know why I used Sunderland as an example when it applies to Ipswich this season. They should be allowed £61m so are well clear rather than being borderline.

Edited 8 January by Number 6

[DezFox]

Maybe this is all being leaked by the club so when we don’t get a punishment we are all grateful hahah 

[Stadt]

4 hours ago, HankMarvin said:

The loophole can’t go both ways though can it, on one hand they have said last season they were not a pl member at that time. How can they then claim the £22n reduction doesn’t apply to them the 35m PSR limit is for the top flight teams per season?

 

The board deserve the PL and FL kicking us out the leagues entirely as we'll keep claiming we don't belong to either division 

[Lambert09]

2 hours ago, Number 6 said:

Definitely if there was to be a really hefty deduction. Though if we were going with the long term strategy then I think you'd wait until the summer.

We are more attractive as a premier league team and we may have an embargo from the summer. Id be making sure to get what we need in this window right if I was in charge. 

[Bilo]

1 hour ago, The_77 said:

I’m not so confident in his guesstimate that our wage bill was reduced by more than 50% in the Championship…

 

1 hour ago, Bert said:

I wouldn’t be surprised. Maddison, Tielemans, Evans, Soyuncu, Amartey, Barnes, Perez, Castagne & Bertrand off the wage bill with everyone else taking a pay cut who stayed, along with Rodgers who was on huge amounts also coming off…. 

This. Some of those were on enormous money that season; Rodgers was on £10m a year, wasn't he? 

[The Doctor]

2 hours ago, ClaphamFox said:

The Mercury has finally picked up the story. The good news: the article claims that the sale of KDH will count towards the 2021-24 revenue. The not so good news: it reckons our allowable losses for the period will be £83m, not £105m.

 

https://www.leicestermercury.co.uk/sport/football/football-news/what-ruud-van-nistelrooy-wants-9846388

 well yea, that's what w'll be judged on. the intent of the rules is very much that a side that goes down and comes back up again has the season of championship value on it, however any lawyer worth their salt knows there's a world between intent and letter. this is probably why the club are "confident" of passing, because we think we've got a loophole 

[The Doctor]

that said, if we have found a loophole that the championship reduction applies to T-1, T-2, that would just kick the can back a year, as for 2024/25 accounts, we would definitely have T-1 (2023/24) as a championship season...

[ClaphamFox]

9 minutes ago, The Doctor said:

that said, if we have found a loophole that the championship reduction applies to T-1, T-2, that would just kick the can back a year, as for 2024/25 accounts, we would definitely have T-1 (2023/24) as a championship season...

Who knows? Either way, I’m bracing myself for a PL statement on Monday announcing that we’ve been charged with a PSR breach, followed swiftly by a belligerently-worded press release from the club vowing to fight it. 

[Number 6]

11 minutes ago, The Doctor said:

that said, if we have found a loophole that the championship reduction applies to T-1, T-2, that would just kick the can back a year, as for 2024/25 accounts, we would definitely have T-1 (2023/24) as a championship season...

I think this is exactly how it works. And I don't think it's a loophole. 

 

When people mentioned Borson saying it I assumed the PL had ****ed up. But I think it's the way they mean it to work. Means no PL team has to adhere to a £39m loss cap.

[coolhandfox]

3 hours ago, ClaphamFox said:

The Mercury has finally picked up the story. The good news: the article claims that the sale of KDH will count towards the 2021-24 revenue. The not so good news: it reckons our allowable losses for the period will be £83m, not £105m.

 

https://www.leicestermercury.co.uk/sport/football/football-news/what-ruud-van-nistelrooy-wants-9846388

The Mercury just parrots information, more click bait.

[Bert]

51 minutes ago, Bilo said:

 

This. Some of those were on enormous money that season; Rodgers was on £10m a year, wasn't he? 

Apparently so. Tielemans and Maddison a combined £10m also. Bertrand was supposedly on £80k a week…. 

[davieG]

4 minutes ago, coolhandfox said:

The Mercury just parrots information, more click bait.

No need to click

 

What Ruud van Nistelrooy wants from Leicester City over PSR as club set to learn fate
The Leicester City manager said he discussed PSR and a potential points deduction with the club during his negotiations with the Premier League's announcement expected next week

ByJordan Blackwell
13:40, 8 JAN 2025

A potential points deduction over a breach of financial rules was “the most important” topic for Ruud van Nistelrooy during his negotiations with Leicester City, and he expects to be kept in the loop with the club's fate soon to be announced.

The Premier League are expected to reveal next week if any of the 20 clubs have been charged with exceeding the threshold set out in their Profit and Sustainability Rules (PSR) for the 23-24 season. Clubs, including City, had to file their accounts for the last campaign by December 31.

While City’s lawyers successfully argued their case to ensure the club avoided a points penalty for their 22-23 finances, there were not mass celebrations. It was known that City were not out of the woods until their 23-24 accounts were cleared.

 

The EFL had anticipated City breaching PSR for the three-year block now being assessed, but there was reasonable confidence at the club that their June business had saved them. Ahead of the June 30 deadline, City earned £30m in pure profit for homegrown midfielder Kiernan Dewsbury-Hall, having received around £10m in compensation for manager Enzo Maresca and his staff a few weeks earlier.

Coupled with the sales of Harvey Barnes and Timothy Castagne for a combined £53m at the start of the season, City made plenty of profit in transfer dealings. But they did also spend around £38m on the likes of Harry Winks, Conor Coady, Tom Cannon, Stephy Mavididi, and Mads Hermansen.

 

 

Plus, even though their wage expenditure will have come down because of relegation clauses, they had the eighth-biggest wage bill in the Premier League the year they went down, and so would still have had a significant wage bill for a Championship side. That’s even with several high-earners leaving on free transfers.

For the three years being analysed, City must not exceed a PSR threshold of £83m in losses. That’s £35m for each of the two Premier League seasons in the three-year block, plus £13m for the one Championship season.

In 21-22 and 22-23, City recorded a significant combined loss of £182.5m. But there are plenty of payments that do not count towards PSR and so City will be close to the £83m mark, whether under or over.

 

Van Nistelrooy was aware it was a potential problem and said he discussed PSR with owner Aiyawatt ‘Top’ Srivaddhanaprabha and director of football Jon Rudkin during their meetings before he signed his contract to take over as manager. While he is happy for the club to take charge of the situation, he expects to be kept informed.

 

Asked if he had received any assurances from the club over PSR, van Nistelrooy said: “The most important thing in our conversations before I signed, it was a topic. As well, the January window. For me, onwards, especially on the PSR stories, it’s important I know internally how things are being managed. For me it’s up to the club to communicate this towards the media and then for me to focus on winning games and performances.”

Then asked if the club told him in those conversations that there was nothing to worry about over PSR, van Nistelrooy avoided a clear answer, saying: “It’s important to address that it was a topic and that the club will handle the situation, as it did before and it will do so again. From there on, I was okay, and focusing on my job as a manager.”

 

If charged over a breach, City would then enter a process with the Premier League that may see points deducted later in the campaign. Everton and Nottingham Forest were hit with deductions of eight and four points respectively last season.

With City in 19th place in the table, a points penalty would be a big blow for the club. Five straight losses has left them two points shy of safety.

LeicestershireLive contacted Leicester City for comment.

[Bilo]

5 minutes ago, Bert said:

Apparently so. Tielemans and Maddison a combined £10m also. Bertrand was supposedly on £80k a week…. 

You'd have to think the 50% wage cut estimation wouldn't be far off, then. Especially with Maresca being on far less than Rodgers and possible relegation clauses.

[PAULCFC]

14 minutes ago, ClaphamFox said:

Who knows? Either way, I’m bracing myself for a PL statement on Monday announcing that we’ve been charged with a PSR breach, followed swiftly by a belligerently-worded press release from the club vowing to fight it. 

And Di Marco rubs his hands.......So the Board can't get the math's right and probably have to hire someone who knows what he's doing to get us out of a hole again?Wouldn't it be more cost effective to bin Wheelan and Rudkin and get someone from the football world for DOF and pay DI Marco as a consultant?

Edited 8 January by PAULCFC

[Chelmofox]

9 minutes ago, Bert said:

.......Bertrand was supposedly on £80k a week…. 

I know he was a free transfer, but omg - really! Just urgh!

[Bert]

1 minute ago, Chelmofox said:

I know he was a free transfer, but omg - really! Just urgh!

Please note the supposedly.  

 

Since then we’ve also lost Iheanacho, KDH, Albrighton & Praet off the wage bill with a reduction in pretty much everyone else. Yep we’ve signed a few who might be on higher than the rest of the championship squad in Coady & Winks but signings such as Fatawu, Hermansen, Mavididi certainly wouldn’t have been more combined than Iheanchos yearly wage which speaks volumes. 
 

 

[RyCleary]

KDH not sold in time according to athletic article just now 

[Happy Fox]

3 minutes ago, RyCleary said:

KDH not sold in time according to athletic article just now 

I am not in the least bit surprised 

[StevieH]

2 hours ago, Lambert09 said:

We are more attractive as a premier league team and we may have an embargo from the summer. Id be making sure to get what we need in this window right if I was in charge. 

There is no chance we will get anyone decent in this January. Who is going to want to come to Leicester and face relegation battle. No business yet speaks volumes. I'm sure the board will do business based on us getting relegated.

[Happy Fox]

The Athletic | Football

 

@TheAthleticFC

 

Could Leicester be in breach of the Premier League’s profit and sustainability rules for the latest reporting period?

@mjshrimper

,

@RobTannerLCFC

and

@AliRampling

take look. ■ What is PSR? ■ How did we get here? ■ Why could they be at risk? ■ When will a decision be made?

 

 

Full story here

 

From nytimes.com

[Paninistickers]

Anyone else half hoping we get done? 

 

Points deduction ✔️

No January signings ✔️

Manager walks out ✔️

Relegation ✔️

Another points deduction ✔️

Transfer ban ✔️

 

Surely even Rudkin and Whelan couldn't write themselves a self congratulatory report again absolving themselves of all blame and turning fire on the usual suspects;

 

Safe standing

UFS 

General sale tickets 

Men

 

 

 

[Happy Fox]

Time for these chancers to get the club sold. Inept in every sense of the word.

[PAULCFC]

2 minutes ago, Paninistickers said:

Anyone else half hoping we get done? 

 

Points deduction ✔️

No January signings ✔️

Manager walks out ✔️

Relegation ✔️

Another points deduction ✔️

Transfer ban ✔️

 

Surely even Rudkin and Whelan couldn't write themselves a self congratulatory report again absolving themselves of all blame and turning fire on the usual suspects;

 

Safe standing

UFS 

General sale tickets 

Men)

 

 

 

Yep.....seems the best (not for the club..)but for KPFC..........We as fans really need to start again........it's grim and i was there in the L1 season and there was hope.....not now!

[Pliskin]

20 minutes ago, Happy Fox said:

The Athletic | Football

 

@TheAthleticFC

 

 

 

Could Leicester be in breach of the Premier League’s profit and sustainability rules for the latest reporting period?

@mjshrimper

,

@RobTannerLCFC

and

@AliRampling

take look. ■ What is PSR? ■ How did we get here? ■ Why could they be at risk? ■ When will a decision be made?

 

 

Full story here

 

From nytimes.com

It’s still all based on the same stuff all the other papers are reporting. 

[Ric Flair]

29 minutes ago, RyCleary said:

KDH not sold in time according to athletic article just now 

That's surely a typo as they've then quoted sources such as Swiss Ramble who have included it.