Earlier this season, the EFL’s independent Club Financial Reporting Unit (CFRU) determined that Leicester City Football Club was at risk of exceeding the Profitability and Sustainability (P&S) loss limits for the three-year period ending in 2023/24. As a result, the CFRU requested that Leicester City submit a business plan to show how they planned to stay within the spending limits set by the EFL.
Leicester City contested that the P&S Rule in question did not apply to them, leading to the matter being escalated to the independent Club Financial Reporting Panel (CFRP). The CFRP ultimately decided that the Rule did not apply to Leicester City, relieving them of the obligation to submit a business plan.
The decision of the CFRP has been released today and will influence potential amendments to the Rules in order to ensure fair treatment of all Championship Clubs in the future. Leicester City is still expected to uphold their obligations under the P&S Rules, as will all other Clubs following the League’s established processes.
The League will not be commenting further on this issue at this time.
