On 16 May 2025, upon an investigation referred to it by the English Football League, the Premier League issued a complaint against Leicester City Football Club alleging breaches of the EFL’s Profitability and Sustainability Rules (“P&S Rules”) for the three-year assessment period for the 2023–2024 financial year (“FY24”), and breaches of the Premier League rules in failing to provide the club’s annual accounts when requested.
The complaint was referred to a Disciplinary Commission for determination, to which Mark Hovell (Mills & Reeve) and Nick Igoe were appointed as members with Aradhya Sethia as secretary and James Drake KC as chair.
A week-long hearing was conducted in November–December 2025, and the Commission issued its decision on 5 February 2026, by which the Commission recommended to the EFL that Leicester should receive an immediate deduction of six points in the Championship for its breach of P&S Rules.
Leicester advanced competition law challenges to the Premier League Board’s sanctioning approach and to the variable upper loss threshold (“ULT”). The Commission rejected those challenges. It concluded that the sanctioning approach, including the possibility of sanctions taking effect in the Championship and having regard to EFL sanctioning guidance, was neither anti-competitive nor an abuse of dominance, and was a necessary and proportionate measure to achieve the objectives of sanctions. The Commission also concluded that the variable ULT was not a restriction of competition by object or by effect but was a necessary and proportionate mechanism to manage the financial consequences of movement between competitions. The Commission concluded that the applicable ULT was £83 million, that the applicable assessment period was 36 months, and that Leicester overspent by £20.8 million. The Commission also concluded that Leicester breached its disclosure obligations, but those breaches did not warrant an aggravation of the sporting sanction, and that the club’s cooperation did not warrant a reduction in sanction.
The Commission determined that it had powers under the Premier League rules to recommend to the EFL that a sporting sanction should be imposed on the club in the Championship. An immediate six-point deduction in the Championship was therefore recommended. This comprised a starting point of seven points based on the percentage overspend, reduced by one point reflecting Leicester’s positive financial trend as mitigation. The EFL has accepted that recommended sanction.
