Leeds United will have to pay a lot of attention to PSR thresholds this summer despite their promotion, and any frivolous spending could see them follow Leicester City’s pathway after 23/24’s promotion tussle.
12 months ago, Leeds were the laughing stock of the EFL after failing to secure promotion back to the Premier League – wound up by Southampton at Wembley, plus automatic promotion duo Leicester City and Ipswich Town.
All three have been leapfrogged in the top flight now by 24/25 champions Leeds, though, and for Leicester in particular, the gloom doesn’t stop with promotion.
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Leicester City face 12-point minimum deduction after PSR breaches at Leeds’ expense
Leicester’s PSR breaches are long-standing and well documented, pertaining to both their 22/23 (Premier League) and 23/24 (Championship) seasons, evading punishment in the former of those on jurisdiction loopholes.
However, they haven’t got out of the woods with their spending in 23/24 when they pipped Leeds to promotion, charged with a breach now that the loophole has been closed on which governing body can dish out punishment.
Leicester City enjoyed promotion at Leeds United’s expense while flagrantly breaching PSR. (Action Images via REUTERS/Jason Cairnduff)
Now, i News share the latest bleak update for the Foxes, revealing that a 12-point minimum deduction looms at the King Power Stadium upon their EFL return.
Leicester’s reported loss of over £15million during the accounting period in question means they are ineligible for some of those deductions being discounted, set to be hit with -12 thanks to a loss of £17million.
Not only that, but the Premier League is arguing for further deductions due to aggravating circumstances too, having failed to submit accounts on time and failing to comply with the subsequent investigations.
Warning signs for Leeds United to avoid similar PSR nightmare
Aside from the ‘banter’ aspect of relegation and promotion this season for Leicester and Leeds, there is a real warning here for the 49ers.
Being so flippant about the rulebook and spending beyond your means can bring short-term reward, but handling finances like that comes back to bite.
Leeds’ accounting period for next season leaves them with £61million permitted losses, which is considerably less than those who have stayed up the past two seasons.
Many fans watching on would be tempted to see the club to play with fire and risk overspending in order to ensure a much better chance of survival, as Nottingham Forest and Everton did, but the pitfalls are there for all to see with Leicester.