Leicester City’s profit and sustainability (PSR) controversy has been clarified following a ruling.

Leicester were charged last May with allegedly violating the EFL’s financial rules during their promotion-winning campaign back to the Premier League in 2023-24.

Following a November hearing, it was reported on February 5 that Leicester had been deducted six points.

The penalty was called promptly, and the Foxes are currently 21st in the Championship table, just outside the relegation zone on goal difference.

In a statement, Leicester stated that the points deduction is “disproportionate” and that they are exploring their alternatives.

How Leicester averted a 12-point deduction as decision was analyzed.

Former Manchester City financial consultant Stefan Borson told Football Insider that the points reduction might have been “a lot worse” for Leicester.

The commission concluded that the Foxes spent £20.8 million more than their £83 million loss limit between 2021-22 and 2023-24.

Borson told Football Insider: “I think overall it might have been much worse for Leicester. The Premier League began with 12 points before the different changes, so six points on that basis is a good outcome, and I believe it will allow them to draw a line under it.

“If you read their release, it appears that they are now clear of 2024-25. Another intricacy in the ruling was whether the assessment term should be 36 or 37 months. It’s fairly complex, but it has to do with Leicester changing their accounting date.

“The interesting thing was that if it had been established that the correct number was 37 months, as requested by the Premier League, the miss would have increased from £20.8 million to more than £40 million, making a significant difference.” It would have impacted 2024-25.”

Why Leicester is currently free of PSR concerns.

Borson argued that Leicester’s PSR troubles are now “very good news” for them.

“It seems from Leicester’s announcement that they are now clear on 2024-25, and that’s certainly the impression given generally,” Borson told reporters.

“That is very good news of course because they probably can’t afford to lose any more points, just because they’re so poor on the pitch at the moment.”

Meanwhile, Leicester are looking for a new manager after dismissing Marti Cifuentes at the King Power Stadium last month.

Andy King has taken over on an interim basis, but he is not anticipated to keep the position permanently.

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