Leicester City 'concerned' after EFL unit 'acted outside powers' in finances probe
- Published
Leicester were asked to submit a business plan to show how it planned to comply with P&S rules
Leicester City say they are seeking "an appropriate overall outcome" into an ongoing English Football League inquiry into a possible breach of profitability and sustainability (P&S) rules.
The EFL has published a decision which found its own Club Financial Reporting Unit (CFRU) had acted outside its powers in dealings with the Foxes.
The club was forecast to breach loss limits for the current three-year term.
It was asked to submit a business plan on how it would comply with P&S rules.
But an independent Club Financial Reporting Panel (CFRP) concluded that under the rules "as currently written", Leicester were "under no obligation to submit and agree to a business plan".
The Foxes said they were "pleased" the panel found in their favour but "concerned" that it was necessary for the CFRP to "intervene in this way to prevent the CFRU from acting outside established EFL rules".
"Leicester City confirms it is in discussions with the football authorities regarding its profitability and sustainability calculations," a club statement continued.
"Notwithstanding the CFRP's decision, the club remains committed to seeking an appropriate overall outcome in this matter."
For two of the three years of the three-year period ending 2023-24, which the inquiry is looking at, the Foxes were a Premier League club.
Based on financial information submitted by Leicester, earlier this season the EFL's independent reporting unit (CFRU) concluded the club was forecasting to breach the P&S loss limits for the three-year period.
An EFL statement said: "The CFRU determined that it was appropriate under P&S Rule 2.9 to require Leicester City Football Club to submit a business plan to demonstrate how it planned to comply with the EFL's P&S spending limits.
"The club argued that the relevant P&S rule did not apply to it, meaning the CFRU had no right to require a business plan in respect of season 2023/24.
"That matter was referred by the club to the independent Club Financial Reporting Panel (CFRP) which concluded that under the rules as currently written, rule 2.9 did not apply to the club and so it was under no obligation to submit and agree to a business plan."
The EFL said that the CFRP's decision would "help in informing the EFL on the potential rule amendments that will be proposed for consideration by Championship clubs in the future to ensure all clubs are treated equally under the rules. "
"Leicester City is responsible for meeting its obligations in respect of the P&S rules which will be assessed along with the submissions of all other clubs in accordance with the League's established processes," it added.
"The League will be making no further comment on this matter at this time."