Leicester City’s points deduction shows the tail doesn’t always wag the dog

cityam02-06

Leicester City have received a six-point deduction for historical overspending The Premier League’s victory over Leicester City shows that clubs can’t lose money with impunity, but is it one battle in...

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Leicester’s biggest sin appears to have been taking the party a bit too far.Stay ahead with our three daily briefings delivering all the key market moves, top business and political stories, and incisive analysis straight to your inbox.There are political takeaways from this case too.Recent seasons have seen football’s regulators come under increasing pressure from their constituents.Last year, the Premier League lost its battle against Manchester City to preserve its Associated Party Transaction regulations, when these were ruled as unlawful. Just over a year ago, Leicester themselves successfully disputed a separate charge by the Premier League of breaching financial regulations.What regulator can learn from Leicester caseThis week’sruling, which imposed an immediate six-point deduction on Leicester, has a slightly different flav","collect":0,"end_time":0,"defaultTopTitle":"cityam.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4211":"区域性银行","CHCO":"City Holding Company"},"translate_title":"莱斯特城的扣分表明尾巴并不总是摇狗","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CHCO":1.5},"content_text":"Leicester City have received a six-point deduction for historical overspending The Premier League’s victory over Leicester City shows that clubs can’t lose money with impunity, but is it one battle in a much bigger war, writes Aaryaman Banerji.Every ruling tells a story. And so it is that English football has become something of an anthology. This week’s verdict by a three-man independent commission, finding that Leicester City had breached EFL Profit and Sustainability rules, is simply the latest chapter. The case, brought by the Premier League following Leicester’s promotion in 2024, but covering a three-year period during which time the club also competed in the EFL Championship, is at least a revealing episode, particularly in relation to financial regulation across English football.  Perhaps most starkly, the case is a troubling reminder of the scale of lossmaking that exists across the football pyramid. An £83m cap on lossmaking across a three-year period ought to be a relatively supine threshold for businesses – and yet Leicester’s accounts have shown an overshoot of that number by over 25 per cent. \n\nThe club are far from alone in such lossmaking; a recent study by LCP has shown that 84 per cent of clubs in the top five tiers of men’s football lose money. Leicester’s biggest sin appears to have been taking the party a bit too far.   \n\n\n\n\n\n\nNews Updates\nStay ahead with our three daily briefings delivering all the key market moves, top business and political stories, and incisive analysis straight to your inbox.\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nThere are political takeaways from this case too. Recent seasons have seen football’s regulators come under increasing pressure from their constituents. Last year, the Premier League lost its battle against Manchester City to preserve its Associated Party Transaction regulations, when these were ruled as unlawful. Just over a year ago, Leicester themselves successfully disputed a separate charge by the Premier League of breaching financial regulations.  What regulator can learn from Leicester caseThis week’s ruling, which imposed an immediate six-point deduction on Leicester, has a slightly different flavour; that of competition organisers successfully exercising their regulatory powers.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.36.2","shortVersion":"4.36.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2609262560","isCrawlerRequest":true}