In a dramatic development that underscores the precipitous fall of a recent Premier League champion, Leicester City Football Club has been plunged into a Championship relegation battle following an immediate six-point deduction for breaching financial rules.
The sanction, imposed by the English Football League (EFL) on Thursday after a recommendation from an independent disciplinary commission, sees the Foxes plummet from 17th to 20th position, clinging to safety above the relegation zone only by the narrow margin of goal difference.
The punishment stems from breaches of the Profitability and Sustainability Rules (PSR) for the three-year assessment period ending with the 2023-24 season, during which the club exceeded the permitted loss threshold by £20.8 million.
The commission also found the club guilty of failing to submit its annual accounts to the Premier League by the required deadline.
In a statement, Leicester City expressed profound disappointment with the decision, which it branded “disproportionate” and argued did not adequately reflect the mitigating factors presented, “the importance of which cannot be overstated given the potential impact on our sporting ambitions this season”.
The club confirmed it is reviewing the decision and considering its options, which could include an appeal.
This latest crisis arrives during one of the most turbulent periods in the club’s modern history. Just days before the points deduction, owner Aiyawatt ‘Top’ Srivaddhanaprabha gave his first interview to British media in a decade, providing a stark assessment of the club’s decline from title winners to a struggling second-tier side.
“The [person] most people should blame is me because I own the club, I’m the chairman,” Srivaddhanaprabha told BBC Radio Leicester, accepting personal responsibility for the woes that have seen the club suffer two relegations in three years.
He described the past decade, which included the tragic death of his father Vichai in a 2018 helicopter crash, as a “rollercoaster,” admitting, “We did not expect to be in this position”.
The owner revealed a sweeping overhaul of the club’s executive structure is underway, including the appointment of a new chief executive, commercial director, and, crucially, a sporting director.
This new sporting director will assume the day-to-day responsibilities currently held by long-serving director of football Jon Rudkin, who has been a focal point for fan criticism.
Rudkin will move to a more senior position above the new appointment. Srivaddhanaprabha defended Rudkin, pointing to his involvement in the club’s historic successes, but acknowledged the need for change, stating, “The world has changed. A lot of things inside the training ground are huge, I think he needs support”.
On the pitch, the club is in a state of limbo. The points deduction compounds a dismal run of form that has seen the Foxes winless in their last four league fixtures, losing three.
The team has been without a permanent manager since Martí Cifuentes was sacked in late January, with club legend Andy King currently serving as interim head coach. The immediate challenge is a trip to Birmingham City this Saturday, a match where anything less than a victory could see Leicester slip into the bottom three depending on other results.
Sky Sports EFL editor Simeon Gholam described the situation as a nightmarish season going “from bad to worse,” noting the cruel irony that a decade to the day from when Leicester ascended to the top of the Premier League during their miraculous title run, they now face the genuine threat of dropping to the third tier.
The club’s financial turmoil is deep-seated, with combined losses exceeding £200 million over the relevant three-year period, far above the maximum allowable loss of £81 million for a club that spent two seasons in the Premier League and one in the Championship during that cycle.
Looking ahead, the owner insists the club’s ambition remains intact but must be tempered with realism. “We should be the underdog like before. We should fight for every ball, fight for each other,” Srivaddhanaprabha said, evoking the spirit of the 2016 title win.
He affirmed his unwavering commitment to the club, which he likened to a son, stating unequivocally, “How can I walk away from my son?”. The immediate task, however, is one of stark survival, navigating the final months of the Championship season from a position of severe peril, a stark contrast to the heights of a decade ago.