Leicester City and PSR – Everything you need to know on EFL dispute, player sales, and what next

[MPH]

47 minutes ago, iancognito said:

Is that official? I heard that now the pts deductions and appeals are confirmed as yet un-named clubs had pushed ahead with their claims. One of the cabal of "football Finance experts" was on the radio the other day saying there would be at least 40-50m in compensation due via the PL. You'd think our lawyers would want to factor that lost revenue into our losses for last season.

 

official as in press release? No. But you can’t expect  an official announcement, surely?

[Chrysalis]

12 hours ago, HankMarvin said:

“Looking at the most recent accounts from the 2021/22, on the face of it Leicester City have the most to fear, because they had by far the largest operating loss of £83m, the highest wage bill of £182m, the highest wages to turnover ratio of 85%, the highest debt of £346m and the highest interest payable of £19m”

 

 

Turnover will be expected to be 178m if you correlate the broadcasting losses -35m for European football/finishing bottom 3 in line with Southampton and Leeds 

 

even with the reduction in salary and bonuses as you state above the wages to turnover ratio will stay high because of the loss of broadcasting turnover.

 

what about the rise in interest rates?

 

Looking at that, Leeds probably the least vulnerable of the three.

We had the highest turnover but a large amount of it proportionally was broadcasting.  Leeds the highest "natural" turnover. Southampton the lowest.

 

We had an extra 60 million in wages, ridiculous wage bill for a club of our stature.  Our wage bill was 3x our non broadcasting revenue, and 30m over our broadcasting revenue, Leeds wage bill was less than double their non broadcast revenue and slightly higher than their broadcast revenue, Southampton wage bill a bit more than triple their non broadcast revenue and slightly lower than their broadcast revenue.

 

We also had the highest amortisation costs, southampton the least.

Unsurprisingly the wages to turnover ratio reflects my thoughts on the financial vulnerability.

[iancognito]

4 hours ago, MPH said:

 

official as in press release? No. But you can’t expect  an official announcement, surely?

At some point it would become public knowledge or the PL would release a statement because it would be part of official proceedings. With £xxM involved they'd have to address it.

[PaulW]

15 hours ago, Sir Shep said:

Apologies as I haven’t studied the threads much but has the club said anything or are they hiding in a cave with their fingers in their ears going la la la la la? 

Neither of those.

[WoodyFox]

Breakers of PSR and FFP, you made us sing that 

[coolhandfox]

7 hours ago, Chrysalis said:

Looking at that, Leeds probably the least vulnerable of the three.

We had the highest turnover but a large amount of it proportionally was broadcasting.  Leeds the highest "natural" turnover. Southampton the lowest.

 

We had an extra 60 million in wages, ridiculous wage bill for a club of our stature.  Our wage bill was 3x our non broadcasting revenue, and 30m over our broadcasting revenue, Leeds wage bill was less than double their non broadcast revenue and slightly higher than their broadcast revenue, Southampton wage bill a bit more than triple their non broadcast revenue and slightly lower than their broadcast revenue.

 

We also had the highest amortisation costs, southampton the least.

Unsurprisingly the wages to turnover ratio reflects my thoughts on the financial vulnerability.

It a uncomplete picture, this is only looking at the 21/22, with pluging the the other 2 sets of accounts for the whole 3 year reporting period it hard to know where anyone is.

[Ric Flair]

9 hours ago, Chrysalis said:

Looking at that, Leeds probably the least vulnerable of the three.

We had the highest turnover but a large amount of it proportionally was broadcasting.  Leeds the highest "natural" turnover. Southampton the lowest.

 

We had an extra 60 million in wages, ridiculous wage bill for a club of our stature.  Our wage bill was 3x our non broadcasting revenue, and 30m over our broadcasting revenue, Leeds wage bill was less than double their non broadcast revenue and slightly higher than their broadcast revenue, Southampton wage bill a bit more than triple their non broadcast revenue and slightly lower than their broadcast revenue.

 

We also had the highest amortisation costs, southampton the least.

Unsurprisingly the wages to turnover ratio reflects my thoughts on the financial vulnerability.

Leeds are a fascinating case because they spent significantly in 22/23 (although they also sold Raphina and Phillips for to offset about two thirds of it) and last summer they largely loaned out their players so they must be running close to breaches for 23/24 unless they manage to sell a few before the end of June.

 

 

[coolhandfox]

1 hour ago, Ric Flair said:

Leeds are a fascinating case because they spent significantly in 22/23 (although they also sold Raphina and Phillips for to offset about two thirds of it) and last summer they largely loaned out their players so they must be running close to breaches for 23/24 unless they manage to sell a few before the end of June.

 

 

I think they could be close to the PL FFP, they have been name check by Stefan Borson as having the same issue as us if promoted.

 

Could be carnage next season.

 

Edited 9 March by coolhandfox

[UniFox21]

1 hour ago, Ric Flair said:

Leeds are a fascinating case because they spent significantly in 22/23 (although they also sold Raphina and Phillips for to offset about two thirds of it) and last summer they largely loaned out their players so they must be running close to breaches for 23/24 unless they manage to sell a few before the end of June.

 

 

They've sold a LB to Bournemouth for £20m which will help

[UniFox21]

27 minutes ago, coolhandfox said:

I think they could be close to the PL FFP, they have been name check by Stefan Borson as having the same issue as us if promoted.

 

Could be carnage next season.

 

If we now assume all these have failed, and all get promoted, then that's 8 teams at risk of being on negative points. 

You also have a complete scattering of club size as well; not just small or giants

[coolhandfox]

Interesting take on what would happen if we fail both.

[Out Foxed]

35 minutes ago, UniFox21 said:

If we now assume all these have failed, and all get promoted, then that's 8 teams at risk of being on negative points. 

You also have a complete scattering of club size as well; not just small or giants

not really. Chelsea is the only "elite" club there.

[Corky]

Are we guaranteed to fail the EFL regulations this year or is there a chance, however remote, that we could sell enough players to meet the threshold?

[UniFox21]

59 minutes ago, Out Foxed said:

not really. Chelsea is the only "elite" club there.

Well yes, but my point was you have clubs at all ends of the league.

 

An elite club, 2 clubs pushing for European football, Wolves who are a solid mid table, 2 clubs fighting relegation and 2 who will potentially be back in the league next year. 

[Paninistickers]

Anyone up to scratch on the rules of this. 

 

It seems well acknowledged we need roughly 35m by the end of this month to avoid another PSR breach. 10m chunk now bitten off via Enzo. 

 

So this 25m. What if we sell nobody, but 'advance' ourselves (as per) some TV money via Macquarie? Or advance ourselves a future transfer of a player (effectively selling the player to Macquarie) .....will that work? 

 

What if we dont sell AND dont buy a d choose to go with what we've got. Soumare, Victor, KDH, JJ, Souttar etc. Would avoiding any outlay help us at all? 

 

[davieG]

Leicester City points deduction to be fast-tracked after latest – Kieran Maguire
Kieran Maguire
Kieran Maguire
Sat 1 June 2024 11:38, UK
Leicester City’s points deduction case will be fast-tracked once the Premier League transfers shares from last season’s relegated sides to the promoted clubs.

That is the view of finance expert Kieran Maguire, who exclusively told Football Insider that the Premier League will want to process Leicester’s case as quickly as possible to provide clarity before the start of the 2024-25 campaign.

The Foxes were charged with a breach of the Profit and Sustainability Rules in their 2022-23 accounts back in April.

The Championship winners posted losses of £89.7million in 2022-23 – their final year in the Premier League.

According to The Telegraph, Leicester could now face a record-breaking deduction of 15 points if they are found guilty of their breach.

Maguire believes progress will be made on the case once the Premier League has transferred shares to the promoted clubs.

Premier League to fast-track Leicester points deduction this summer
“First of all, Leicester used the rules well to avoid any sanctions during the season,” Maguire told Football Insider’s Sean Fisher.

“They argued they were not an EFL club or a Premier League club for the three years leading to the 30th of June 2023.

Join the Football Insider WhatsApp channel to get all our exclusives and the breaking transfer news FIRST.
“But it was a case of kicking the can down the road as opposed to making the problem go away.

“It’s now up to the Premier League to sort this quickly.

Leicester
“They will now go through the formal process of transferring the shares in the Premier League from Sheffield United, Luton and Burnley to Leicester, Southampton and Ipswich.

“Once that is done, I expect to see a rapid response from the Premier League, who will presumably want this sorted out as quickly as they can over the summer.“

[Sly]

With so many clubs at risk If being on minus points, at what points do the clubs rebel against the stupid rules they voted for? 

[Ric Flair]

53 minutes ago, davieG said:

Leicester City points deduction to be fast-tracked after latest – Kieran Maguire
Kieran Maguire
Kieran Maguire
Sat 1 June 2024 11:38, UK
Leicester City’s points deduction case will be fast-tracked once the Premier League transfers shares from last season’s relegated sides to the promoted clubs.

That is the view of finance expert Kieran Maguire, who exclusively told Football Insider that the Premier League will want to process Leicester’s case as quickly as possible to provide clarity before the start of the 2024-25 campaign.

The Foxes were charged with a breach of the Profit and Sustainability Rules in their 2022-23 accounts back in April.

The Championship winners posted losses of £89.7million in 2022-23 – their final year in the Premier League.

According to The Telegraph, Leicester could now face a record-breaking deduction of 15 points if they are found guilty of their breach.

Maguire believes progress will be made on the case once the Premier League has transferred shares to the promoted clubs.

Premier League to fast-track Leicester points deduction this summer
“First of all, Leicester used the rules well to avoid any sanctions during the season,” Maguire told Football Insider’s Sean Fisher.

“They argued they were not an EFL club or a Premier League club for the three years leading to the 30th of June 2023.

Join the Football Insider WhatsApp channel to get all our exclusives and the breaking transfer news FIRST.
“But it was a case of kicking the can down the road as opposed to making the problem go away.

“It’s now up to the Premier League to sort this quickly.

Leicester
“They will now go through the formal process of transferring the shares in the Premier League from Sheffield United, Luton and Burnley to Leicester, Southampton and Ipswich.

“Once that is done, I expect to see a rapid response from the Premier League, who will presumably want this sorted out as quickly as they can over the summer.“

We aren't on the new fast track rules, if the PL do try and do this then I wonder if we'll further dig our heels in. Although fast tracking probably refers more to doing in year rather than the time it takes to reach the verdict on this. I still doubt we'll know for sure until late autumn time.

[davieG]

These media muffs spreading gossip and speculation record points do us no favours when we end up with 6  everyone will be convinced we've cheated. They're already thinking that with the mis representation of us making the EFL and EPl follow their own rules.

[Corky]

36 minutes ago, Ric Flair said:

We aren't on the new fast track rules, if the PL do try and do this then I wonder if we'll further dig our heels in. Although fast tracking probably refers more to doing in year rather than the time it takes to reach the verdict on this. I still doubt we'll know for sure until late autumn time.

They should let the commission get on with it, I'd rather know the maximum before we start the season.

[Bourne Blue& White]

Are Man City going to be fast tracked as well now ? Just asking.

[Wymsey]

1 hour ago, Bourne Blue& White said:

Are Man City going to be fast tracked as well now ? Just asking.

Am sure that they'll have their way, to some extent.

Edited 1 June by Wymsey

[Pliskin]

If the verdict is 15 points, it breaches the current punishment rules, so what gives? It literally can’t be 15 points otherwise it’s corrupt and made up. 
 

8 points is the max it can be……. That’s it.

 

This is precisely why you get legal aid, to stop yourself getting ****ed in the anus.

Edited 1 June by Pliskin

[urban.spaceman]

2 minutes ago, Pliskin said:

it’s corrupt and made up. 

FTFY

[ScotFox1]

As a matter of interest.. I wonder what other teams will also be in breach and facing points deductions?

 

I find it hard to believe that we will be the only ones in trouble, and if there are, perhaps our chances of survival next season will be better than the media would have us believe.

 

All in all.. it's such a dog's mess.  Money has ruined the game.