Club hit with six-point deduction after breaching Premier League financial rules

February 6, 2026 Oliver Obel

Leicester City’s season has taken a significant blow after the club was hit with a six-point deduction, a decision that has tightened the Championship relegation race and renewed focus on its financial conduct.

The penalty leaves Leicester at the foot of the table, outside the relegation places only on goal difference, and facing increased pressure both on and off the pitch.

Why the points were deducted

The sanction follows a finding that Leicester breached the Premier League’s Profitability and Sustainability Rules (PSR) during the 2023–24 season, when the club was competing in the Championship. The rules are designed to limit how much clubs can lose over a rolling three-year period to safeguard financial stability.

According to reporting by The Telegraph, an independent panel concluded Leicester’s losses were well beyond the permitted threshold. Over the three-year assessment period ending June 30, 2024, the club recorded losses exceeding £200 million. Under PSR regulations, losses are capped at £81 million across that timeframe, subject to allowable adjustments.

The Premier League confirmed in May that Leicester had also failed to submit their annual accounts by the December 31 deadline. The club was further accused of not providing full and prompt cooperation during the league’s investigation.

Previous appeal and jurisdiction issue

Leicester had previously avoided punishment for an earlier alleged PSR breach. In September 2024, an appeal panel ruled that the Premier League lacked jurisdiction because Leicester were in the Championship when the relevant accounting period closed.

That ruling proved decisive at the time, but it did not apply to the latest case.

EFL enforces sanction

With Leicester outside the Premier League when the most recent decision was reached, responsibility for enforcement shifted to the English Football League. The EFL confirmed it imposed the deduction under regulation 87.7, which allows it to apply sanctions consistent with recommendations made by Premier League commissions or appeal boards.

The decision was taken at a meeting on Thursday, February 5, and the points deduction was applied immediately, altering the Championship standings.

Leicester’s response

Leicester said it was disappointed by the outcome and is reviewing its options.

“It is with disappointment that Leicester City acknowledges the Independent Commission’s decision and the Club will use the time available to consider its next steps,” the club said in a statement.

While noting that the commission reduced the scale of the punishment initially sought by the Premier League, Leicester argued the final sanction remained excessive given the circumstances.

“The recommendation remains disproportionate and does not adequately reflect the mitigating factors presented,” the statement said, adding that those factors were significant given the potential impact on the club’s sporting ambitions.

Leicester also highlighted what it described as positive elements of the ruling, including agreement that compliance for the 2023–24 financial year should be assessed over a 36-month period and that no aggravating factors were applied. The club said the panel acknowledged an improving financial trend during the most recent year.

“We are now reviewing the decision in full and considering the options available to us,” Leicester said. “We remain committed to engaging constructively and ensuring that any action is fair, proportionate and determined through the appropriate processes.”

What it means going forward

The deduction leaves Leicester with little margin for error as the season progresses and underlines the growing influence of financial regulation on sporting outcomes across English football.

Sources: Telegraph, Premier League, English Football League