Leeds United argue they have not violated profit and sustainability criteria, while Phil Hay believes Leicester City may face sanctions this season.
According to an Athletic journalist, both teams have been subject to the same £83 million loss ceiling under PSR, with Leicester apparently under investigation and Leeds insisting on remaining compliant.
According to iNews (12 March), Leeds are in risk of breaking planned spending limits if promoted back to the Premier League, as they would exceed a cost cap by almost £11 million.
Hay also stated that if they do not earn promotion this season, the club will need to balance the books during the transfer window to prevent financial problems.
Could Leicester City face a point deduction?
According to The Athletic, the EFL would prefer to fine Leicester for alleged financial violations this season, but with less than ten games remaining, this would be tough to settle before the season’s end.
That will also be a source of annoyance for Leeds, as they have reduced the gap on the current league leaders, and a potential points deduction could propel them up the table, giving them a better chance of automatic promotion or even winning the title.
This is also claimed to be a source of dissatisfaction at Elland Road, with the team fighting with Leicester for promotion despite following the rules, similar to their match against Everton.
Comparisons can be made to the situation with Everton in the Premier League, with Leeds believing they have been negatively impacted by another team breaking the rules while they have remained inside the limits imposed on them – possibly to their detriment.
If Leicester are not penalized this season, as Everton were not punished last season, a prospective legal challenge at Elland Road might be on the cards, with the club likely seeking damages as they threatened with the Premier League side.
