Leicester City Announces £89.7m Loss amidst Premier League Financial Regulations Charge

Leicester City has reported a loss of £89.7m for the 2022-23 football season, a few weeks after being charged by the Premier League for allegedly violating profitability and sustainability rules. The foxes experienced a sharp drop in revenue combined with a high wage bill, leading to the losses, even after the prominent sale of James Maddison to Tottenham.

Leicester, currently third in the Championship, was last month charged by the Premier League and referred to an independent commission for a suspected breach of financial regulations during the 2022-23 football season. The team had reported losses of £92.5m in the previous season as well, the latest figures might potentially raise difficulties for them to abide by financial regulations that allow top-flight clubs to lose £105m over a three-year period.

The English Football League has already put Leicester under a transfer embargo after the club's charge last month. The club might face a point deduction if found guilty, which will apply even if they manage to secure promotion back into the top league. Leicester has announced its intention to initiate legal action against the Premier League and the English Football League.

Leicester City is the fourth club to be charged by the Premier League for financial regulation violations. Earlier, Nottingham Forest was penalized with a four-point deduction for breaching financial rules, and Everton had a 10-point deduction reduced to six on appeal. Manchester City still awaits their hearing after being charged with 115 financial rule violations last year.