The #LUFC Breakfast Debate (Thursday 14th March) Foxes face real threat of points deductions this season
Foxes face real threat of points deductions this season
Leicester City face a real chance of a points deduction this season if the EFL get their way, according to Elland Road reporter Phil Hay.
The Foxes have dominated the Championship this season, and at one point held a 15 point gap between themselves and Leeds, but their form in 2024 has been erratic; causing the unattainable lead they built up dwindle down to just three points. Any deduction would have serious ramifications, not just for themselves, but the chasing pack.
The last thing they need during the business end of the season is talk about points deductions, but if you flirt with danger, you must expect to be punished. They face two charges over alleged breaches over profitability and sustainability regulations:-
i) For the three-year cycle up to the end of the 2022-23 season.
ii) The three-year cycle up to the end of the current 2023-24 campaign.
According to Hay "To sum this up briefly, Leicester are expected to breach the PSR loss limit for their most recent accounting cycle and the EFL, it appears, would like to sanction them for that this season."
"But the month is March, the Championship regular season is nine games and less than eight weeks from finishing and anyone clinging to hope of a points deduction affecting the table might be clutching at straws. Long story short: even the rules-makers do not seem certain about what should happen next."
"Leicester could be cast as an example of the financial trouble awaiting teams relegated from the Premier League and deprived of much of the revenue on offer there, but a record annual loss of £92.5million ($118.3m) in the 2021-22 year showed that problems were creeping up on them before they went down."
Leeds insist - their books balance
Leeds Utd expect to be financially compliant, and insist their books balance according to an article this morning from Phil Hay.
Unlike previous years, league clubs must submit their accounts for their previous campaign by December 31st, instead of March 31st. This will allow the footballing bodies to scrutinise the figures, and decide whether they have kept the right side of profitability and sustainability rules.
According to Hay, Leeds are confident they have stayed within the financial remits, helped massively by the Sales of Raphinha and Kalvin Phillips during the Summer of 2022.
"Leeds, having been relegated from the Premier League at the same time as Leicester last May, are subject to the same £83million limit for losses not exempt from PSR. Among the exemptions, for example, are costs related to academy development and certain infrastructure projects.
"The £83million figure comprises £35m for each of their past two seasons in the Premier League and £13m for this one in the Championship, the maximum losses permitted annually in those competitions. Unlike Leicester, Leeds say they avoided any breach of PSR in the top flight and expect to be compliant at the end of this season.
"Assuming they are, they will have a big chance of promotion without the same financial problems looming down in the East Midlands. That fact is a cause of frustration at Elland Road, and a reason Leeds were among the clubs considering compensation claims against others, such as Everton, who breached spending limits while retaining their Premier League status.
"Leeds financed their final summer window in the top flight by selling their two best and most valuable players, Raphinha and Kalvin Phillips, for a combined sum of around £90million, working the income to help comply with PSR.
"The £42m earned for Phillips, as a homegrown academy graduate, was entirely profit. An element of Leeds’ grievance is that other teams who breached PSR chose not to sacrifice prime assets in the same way."
Leeds set €15m price tag for Wober
It has been suggested by the Yorkshire Evening Post that Leeds have set a €15m (£12.8) price tag for Max Wober.
The Austrian International has become a fans favourite at Borussia Park this season, which is more than can be said about his notoriety amongst the Elland Road faithful.
He deserted his Leeds Utd team mates shortly after Captaining Leeds during their pre-season tour of Oslo. The Whites had just been comfortably beaten by a makeshift Manchester Utd XI consisting of academy and fringe players, and he didn't want to stick around for more of the same.
It goes without saying that Daniel Farke knew nothing of Wober's desire to leave, and was furious with the the 26yo, especially as he had planned to give him the Captain's armband on a permanent basis.
Unfortunately for Borussia Mönchengladbach, they do not have the funds to splash out £13m for a player. Considering what we saw of him after arriving at Elland Road 15 months ago, the fee seems rather light, especially when he has over three years left on his contract!