Changes to Championship Profit & Sustainability Rules approved at EGM

[Terraloon]

3 hours ago, ClaphamFox said:

17 minutes ago, Bilo said:

 

Edited 13 hours ago by Terraloon

[Terraloon]

3 hours ago, ClaphamFox said:

 

22 minutes ago, Bilo said:

I would imagine it would be difficult to enforce rules retrospectively that didn't exist at the time alleged breaches happened. Ex post facto.

That’s why the question of jurisdiction is key.

 

If it ruled the PL has jurisdiction for the 3 years up to 23/24 then I can’t see that a points deduction can be imposed in the EFL but probably a points deduction would be suspended till LCFC gain promotion , if however it’s ruled the EFL had jurisdiction and LCFC as we know will be a EFL club then the EFL , will probably  issue a charge.

The rule is in place for the 22/23 , 23/24 and 24/25 3 year assessment so any charge Leicester receive if proven and sanctioned with a points deduction will follow to the EFL

It’s  important to realise that for the 3 years 23/24, 24/25 & 25/6 the total losses can only amount to £61 million + allowable. So my best estimates are £125 ish million in total losses 

For the 3 years 22/23 , 23/24, 24/25 they are restricted to £83 million + allowable so my best estimate is £152 million and we know that in 22/23 &23/24 to date they are running at £108.5 million.

Edited 12 hours ago by Terraloon

[urban.spaceman]

2 hours ago, Terraloon said:

Looking just at the bottom line for the 3 years ending June 24 the losses were £201million (£92.4,£89.7 & £18.9)  deduct the £105 ( remember that for clubs promoted T was even though a Championship club increased effectively to£35 million) that’s £96 million over the £105 meaning deductibles of £33 million Pa  for academy, woman’s football and depreciation) which is way above the sort of numbers I believe is correct. I work on a round £23 million a year a number I extracted from the PLs claims that in the 3 years to 23 losses were £129.4 million 

 

Neither the PL nor the EFL will believe that LCFC have co operated so if points deductions are the “ medicine” then they will argue that there are aggravating factors and little to no justification to mitigate down any sanction in their mind would be appropriate 

 

 

They cannot seriously suggest that we haven’t cooperated with them.

 

We’ve cooperated so much that we’ve helped them understand their own rules!

 

If anything we should be rewarded with a points bonus! 

 

1 hour ago, Terraloon said:

 

That’s why the question of jurisdiction is key.

 

If it ruled the PL has jurisdiction for the 3 years up to 23/24 then I can’t see that a points deduction can be imposed in the EFL but probably a points deduction would be suspended till LCFC gain promotion , if however it’s ruled the EFL had jurisdiction and LCFC as we know will be a EFL club then the EFL , will probably  issue a charge.

The rule is in place for the 22/23 , 23/24 and 24/25 3 year assessment so any charge Leicester receive if proven and sanctioned with a points deduction will follow to the EFL

It’s  important to realise that for the 3 years 23/24, 24/25 & 25/6 the total losses can only amount to £61 million + allowable. So my best estimates are £125 ish million in total losses 

For the 3 years 22/23 , 23/24, 24/25 they are restricted to £83 million + allowable so my best estimate is £152 million and we know that in 22/23 &23/24 to date they are running at £108.5 million.

The EFL surely won’t be able to claim jurisdiction over us in a season we didn’t play a single game in their league. 
 

I mean they will absolutely try that, like they did last season.

 

All that was proven last September was that we ceased to be a Premier League club before the end of our accounting window.
 

Neither league have a leg to stand on over that season and neither can they claim we exploited a loophole. We just read the rules. 

[Terraloon]

5 minutes ago, urban.spaceman said:

They cannot seriously suggest that we haven’t cooperated with them.

 

We’ve cooperated so much that we’ve helped them understand their own rules!

 

If anything we should be rewarded with a points bonus! 

 

The EFL surely won’t be able to claim jurisdiction over us in a season we didn’t play a single game in their league. 
 

I mean they will absolutely try that, like they did last season.

 

All that was proven last September was that we ceased to be a Premier League club before the end of our accounting window.
 

Neither league have a leg to stand on over that season and neither can they claim we exploited a loophole. We just read the rules. 

Mitigation in terms of co operation will only be granted if you in effect go over and above what is expected. 
 

The wording throughout the appeal panels ruling avoids stating where jurisdiction lay if the PL doesn’t have it. In reality they ,the IC, don’t state who because they weren’t asked. My reading of the written reasons suggests but it doesn’t state clearly that LCFC became an EFL club . 
 

We don’t know what the PL have put before the arbitrators but the best outcome going into 25/26 is that it’s  ruled that the PL did. If the EFL ultimately 

by default get that “ privilege “ that then sort of opens up potentially other issues such as does  the allowable PL sum of  £35 million apply  for the season or revert to the EFL sum of £13 million.? 

[urban.spaceman]

44 minutes ago, Terraloon said:

Mitigation in terms of co operation will only be granted if you in effect go over and above what is expected.

Worth a try though; if only for Simon Jordan’s meltdown. 

 

44 minutes ago, Terraloon said:

The wording throughout the appeal panels ruling avoids stating where jurisdiction lay if the PL doesn’t have it. In reality they ,the IC, don’t state who because they weren’t asked. My reading of the written reasons suggests but it doesn’t state clearly that LCFC became an EFL club.

As far as I can tell there was nothing in their rules pre-2025 that would legitimise any claim that we were an EFL club in 2022/23, even for the last two weeks and especially not anything that would beholden us to their PSR limits. As I said before though, they will absolutely try. 

 

44 minutes ago, Terraloon said:

We don’t know what the PL have put before the arbitrators but the best outcome going into 25/26 is that it’s  ruled that the PL did. If the EFL ultimately 

by default get that “ privilege “ that then sort of opens up potentially other issues such as does  the allowable PL sum of  £35 million apply  for the season or revert to the EFL sum of £13 million.? 

It’s a complete and total minefield and surely our situation has proven that the rules are not fit for purpose. Especially considering that this grey area existed for a full decade before we fell into it. 

[Terraloon]

52 minutes ago, urban.spaceman said:

Worth a try though; if only for Simon Jordan’s meltdown. 

 

As far as I can tell there was nothing in their rules pre-2025 that would legitimise any claim that we were an EFL club in 2022/23, even for the last two weeks and especially not anything that would beholden us to their PSR limits. As I said before though, they will absolutely try. 

 

It’s a complete and total minefield and surely our situation has proven that the rules are not fit for purpose. Especially considering that this grey area existed for a full decade before we fell into it. 

The dilemma as I see it is the club claim that they ceased to be a PL club around 17 days before the end of the accounting year. That claim is for no other reason than to evade the PL regulations  . That’s all well and good  but if not a PL club under whose jurisdiction if any  did LCFC fall under ? 
 

The EFL rules may not specify but that’s why the arbitration is critical. It may be that they will only focus on did LC fall under the rules and regulations of PL. But if the question is then if not a PL club I suspect the answer has to be it was under EFL  regulations  if that is the outcome then that is a whole different ball game.

The rules may not be fit for purpose but they a are what they are and some times winning an argument may not lead to the lead ultimate outcome you desire

[dooflip]

On 30/04/2025 at 22:38, ACF said:

Sorry, this is totally the wrong way to spin this and something I’m quite passionate about.

 

Wrexham have done a phenomenal job of commercialising the club, helped by their absolute star power yes, but it’s the case study on how to get attention, and therefore £, into your club.

 

Meanwhile, whilst we had ALL the attention, we treat fans like crap, we continued with KP as front of shirt sponsors rather than accept outside money, we’ve launched absolute crap merchandise, our media and social media team are atrocious and don’t drive engagement with the club, I could go on and on. The online shop has been down for at least 6 weeks whilst our greatest ever player has retired, can’t buy a Vardy shirt. And when we do try to capitalise, it’s shit tours to South East Asia in monsoon season.

 

We all whinge about the amount we spent on shite players, but our revenue generation is also absolutely terrible. 

Wrexham should be playing against tns mate. They shouldn’t be allowed to play in our league system. Something I am very passionate about. It’s fine for the whole “Welsh pride” and anti England thing when it suits, but they pick and choose. Complete hypocrites. All or nothing. I trolled a bloke on Facebook last week saying they were better than vardy and didn’t want him, and that they should be buying young exciting Welsh talent for that very reason.

 

What they have done is a complete joke.

Wrexham are tin pot and just a novelty act/gimmick because of their owners. They are literally nothing without them.

 

They are trying to be a Man Utd club and have the minority of the fanbase actually based/from/have family ties or some kind of genuine affinity for the area they support.

 

The same reason I struggle to take anyone “supporting” a team they have no real ties to seriously. How can you be from Leicester and support Liverpool or Manchester? And not your own city? It makes zero sense to me.

oh because they were a good team and winning everything when you were a kid? Plastic fans. Majority have barely been to any games. Support your local club.

 

Even when it comes to following teams in other countries, I can at least say I’ve been to a game or two. The main one I follow (though not liked I used to due to life commitments) is benfica - I lived in Portugal for 4 years as a kid, when I started school the presidents son was in my class. Second week living in Lisbon I was sitting in the presidents box. Went to loads of games in my time there and met many of the golden generation.

Edited 6 hours ago by dooflip

[urban.spaceman]

37 minutes ago, Terraloon said:

The dilemma as I see it is the club claim that they ceased to be a PL club around 17 days before the end of the accounting year.

Upheld by the September ruling. No longer a claim, it’s a fact.

 

37 minutes ago, Terraloon said:

That claim is for no other reason than to evade the PL regulations.

From September’s ruling: 

15. In the following year, using the power conferred by Section 392 of the Companies Act 2006, LCFC prepared its audited accounts for the year ended 30th of June 2023. It is not suggested that there was anything untoward in its changing in its accounting reference date. Those accounts complied with the requirement in Rule A.1.8 that the accounting reference date should be between 31st of May and the 31st of July.

 

37. Para 53.

The Commission observes the LCFC specifically chose the change accounting reference for period T to end of the 30th of June that turned out to subsequently to be a date after it was relegated and ceased to be a member of the PL. Mr De Marco KC acknowledged at the hearing that whilst it was not LCFC‘s intention to circumvent PL rules by moving the accounting reference period from May to June, had it not done so its accounting reference period for T would’ve been completed before its relegation and thus any argument regarding temporal jurisdiction would fall away. We accept LCFC were entitled to change accounting reference period and did so properly in order to try and comply with the PSR’s, however The Commission considers the fact that LCFC‘s financial year end fell after it was relegated is irrelevant to the issue of whether the LCFC remains liable for an alleged breach of the PSR‘s for the 2022/23 season. The process (and ongoing obligations in respect of that process) of compliance with the PSR’s commence before LCFC ceased to be a member and was a process that continued until LCFC provide its final accounts on the financial year ended 30th of June 2023 which you eventually did in April 2024

 

From Swiss Ramble:

Before we start delving into the club’s finances, it’s worth noting the technical impact of the change in the year-end from May to June, which means that their 2022/23 accounts covered 13 months, compared to only 12 months in the prior year.

This brought Leicester in line with the vast majority of other clubs, but the extension also gave them an additional month to book player sales, which allowed them to include James Maddison’s big money move to Spurs.

However, this change also resulted in an additional month of expenses, while there was little impact on revenue, as there were no matches played in June.

 

37 minutes ago, Terraloon said:

That’s all well and good  but if not a PL club under whose jurisdiction if any  did LCFC fall under ? 

Excellent question. It’s a truly absurd situation created entirely by the extreme negligence of company in charge of a multi-BILLION dollar business. 

 

37 minutes ago, Terraloon said:

The EFL rules may not specify but that’s why the arbitration is critical. It may be that they will only focus on did LC fall under the rules and regulations of PL. But if the question is then if not a PL club I suspect the answer has to be it was under EFL  regulations  if that is the outcome then that is a whole different ball game.

If the EFL DO claim we were in their league and privy to their rules in a season in which we didn’t play a single game in their league, how can anyone take them or their rules seriously ever again? Both leagues have completely destroyed their own credibility. 

 

37 minutes ago, Terraloon said:

The rules may not be fit for purpose but they a are what they are and some times winning an argument may not lead to the lead ultimate outcome you desire

I agree.

I’ve said many times on here I am deeply, deeply angry with the failures of Top, Susan and Rudkin and the board’s multiple and repeated failures over many, many years that have led to us being in this disgraceful mess. But having said that, they have challenged both league’s blatantly outrageous behaviour through the proper channels and won, every single time. I mean we’re literally 4-0 up and it’s probably not even ‘half time’ in this process. It will kick off again, big time, when the Man City case is finally resolved, and I think the Premier League will be in such a vulnerable position after it that change will HAVE TO happen. 

[dooflip]

5 minutes ago, urban.spaceman said:

It will kick off again, big time, when the Man City case is finally resolved

Especially if they are relegated and Ipswich stay up!

[urban.spaceman]

25 minutes ago, dooflip said:

Especially if they are relegated and Ipswich stay up!

Knowing us that is absolutely what will happen, but I would PISS MYSELF if we managed to stay up instead. Simon Jordan might actually explode with rage. 

[Genesis1]

On 30/04/2025 at 19:58, jammie82uk said:

I can’t do it in one sentence but here’s a breakdown that hopefully helps 

 

What changed?

The EFL updated financial rules (Profit & Sustainability) for Championship clubs from the 2025/26 season to better manage clubs moving between the Championship and Premier League.

 

Key points:

 

March (each season):

Clubs must send an estimate of their finances for the current season and the two before it, even if they were in the Premier League.

December (after season ends):

Clubs must send their audited accounts and final financial report to the league they are currently in (EFL or Premier League).

Stronger enforcement:

The EFL can now apply penalties from the Premier League, and vice versa.

Early intervention:
If a club looks like it will break the rules, the EFL can act early — e.g., require a business plan or force player sales in the next transfer window (June).

 

Possible future rule:
Clubs are discussing a Squad Cost Ratio, which would limit player spending to a percentage of a club’s income (like the system the Premier League is testing).

 

I appreciate this post. No way this can happen though surely, because the efl can just say we want to see your finances because we think you're going to break the rules. I.e us because we embarrassed them.

[fox_favourite]

They'll call this the Leicester Law. 

 

EFL and football governing bodies are poo wipes and don't really wants what's best for football anymore.