'Definitely on course to fail' - Stefan Borson: Leicester set for PSR breach
01/05/2025 05:16 AM
Leicester City are likely to have breached the profit and sustainability rules (PSR) for 2023-24 following their well-documented financial struggles.
That is the view of finance expert Stefan Borson, who exclusively told Football Insider the club will have submitted their latest accounts to the Premier League in December.
Leicester were charged in March 2024 with a breach of the PSR rules for 2022-23 after reporting losses of £89.7million for that year alone, with top-flight sides only permitted to lose £105million over a rolling three-year period.
The club later successfully appealed against the Premier League's right to charge them after there was confusion over which division they were registered in when they submitted their accounts following their relegation to the Championship.
Leicester had previously blocked an attempt from the EFL to sign them up to an agreed business plan in November 2023 after concerns were raised about another potential PSR breach for 2023-24.
But speaking on talkSPORT on 2 December, finance expert Kieran Maguire revealed King Power Stadium chiefs are "very confident" of avoiding a spending breach following their transfer dealings last season.
The club brought in around £90million across the latest accounting period following the sales of Harvey Barnes, Timothy Castagne and Kiernan Dewsbury-Hall as well as the compensation fee for Enzo Maresca's move to Chelsea.
Leicester City to fail PSR test by some distance
But Borson doesn't believe that will be enough for Ruud van Nistelrooy’s side to avoid a spending breach.
He told Football Insider: "Looking at the numbers, I just don't see where the confidence comes from.
"It's an odd word to use anyway being confident. They should know for sure by now.
"Clearly, they put the numbers into the Premier League last week at the latest, and they have probably been in dialogue with them for some time. The numbers may well have been audited in October.
"If you just rewind, we know that the EFL wrote to them in November 2023 saying 'Based on your model, we think you are going to fail PSR for 2023-24', so they were definitely on course to fail.
"We also know that the position that they went with to the independent commission regarding 2022-23 was -£19.5million over.
"They were effectively -£125million, so they were £20million over the £105million. Most of that was in the last two of the three-year period.
"When the year dropped off, it looks like they started the season on -£125million. If they started on -£125million, that means they needed to make a really big profit to not breach for 2023-24.
"Even if you give them £90million for the player sales and the Maresca compensation from Chelsea, it seems to me that they still fail PSR by quite a way."
In other news, Van Nistelrooy could sign Man United star at Leicester.
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The post 'Definitely on course to fail' - Stefan Borson: Leicester set for PSR breach appeared first on Football Insider.
