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Earlier this season, based on financial information submitted by Leicester City FC, the EFL’s independent Club Financial Reporting Unit (CFRU) concluded that the Club was forecasting to breach the Profitability and Sustainability (P&S) loss limits for the three-year period ending with financial year 2023/24.
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 CFRP decision has been published today and will 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.
The League will be making no further comment on this matter at this time.
