Leicester City banned from signing players, set to sue Premier League and EFL

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Leicester City banned from signing players, set to sue Premier League and EFL

Ayoola Kelechi 21:33 - 22.03.2024

The Foxes will enter a legal battle against the Premier League after receiving a transfer embargo

Leicester City faces legal action against the Premier League and EFL as they are hit with a transfer embargo for alleged profit and sustainability rule breaches.

Charged by the Premier League

Leicester City, a Championship side, finds themselves embroiled in controversy as they face charges from the Premier League over alleged breaches of spending rules during their previous seasons in the top flight.

The club has been referred to an independent commission for alleged Profitability and Sustainability Rule (PSR) breaches and failure to submit audited finances, raising concerns over a potential points deduction for the upcoming season.

Placed Under Embargo

In a further blow to Leicester City's ambitions, the English Football League (EFL) has confirmed that the club has been placed under an embargo.

The purpose of the embargo is to prevent clubs from strengthening their teams or adding to playing staff costs until they have met existing financial obligations or rectified relevant breaches of EFL regulations.

Legal Action Against Premier League and EFL

Responding to the sanctions, Leicester City has announced urgent legal proceedings against both the Premier League and the EFL. The club seeks to have these proceedings determined by independent legal panels, emphasizing their commitment to ensuring charges are properly and proportionately determined in accordance with applicable rules.

"LCFC has been compelled today to issue two urgent legal proceedings against the Premier League and the EFL," stated a club representative. "The Club is committed to ensure that any charges against it are properly and proportionately determined, in accordance with the applicable rules, by the right bodies, and at the right time."

Financial Implications and Threat of Points Deduction

Leicester City faces significant financial challenges, compounded by potential repercussions from the PSR breaches.

With losses amounting to £92.5 million in the 2021/22 season and a drop in revenue following relegation from the Premier League, the club's financial stability is under scrutiny. A points deduction in the upcoming season, akin to Everton and Nottingham Forest's penalties, further exacerbates the situation.

Continued Legal Battle

Despite the setbacks, Leicester City remains focused on their legal proceedings as they navigate the challenges ahead. With Enzo Maresca's team performing well in the Championship and vying for promotion, the club's future hangs in the balance amidst the ongoing legal dispute.

"The Club further notes that at 4pm today (Friday, March 22) the EFL issued a public notification that LCFC has been placed under a registration embargo pursuant to its P&S rules," the club's statement continues. "The EFL is aware that LCFC has disputed the EFL’s entitlement to impose this constraint, which is both restrictive and premature, with more than a quarter of the Club’s 2023/24 reporting period remaining."

As Leicester City battles legal challenges and faces the prospect of a transfer embargo and potential points deduction, the club's aspirations for a return to the Premier League are at stake. With uncertainty looming over their financial future, Leicester City must navigate these obstacles with resilience and determination as they strive to overcome this turbulent period.

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