Leicester City FC faces fresh scrutiny over alleged financial breaches and a controversial sponsorship as it battles on and off the pitch to stay competitive.
Leicester City is set to face an independent commission investigation over alleged breaches of the EFL Profit and Sustainability Rules (PSR) for the 2023/24 season.
In a statement published by the Premier League on May 20, it was confirmed the league had jurisdiction to investigate and refer the club despite the alleged breaches occurring while Leicester competed in the Championship.
Two additional alleged breaches have also been referred: failure to submit annual accounts to the Premier League by the December 31, 2024 deadline, and failure to provide full and prompt assistance to the league in response to its inquiries.
Responding to the statement, Leicester said it “intends to engage cooperatively”. However, its past dealings with the English top flight have not been without friction.
Last year, the club was referred to an independent commission over an alleged PSR breach related to its 2022/23 finances. Leicester successfully challenged the proceedings on jurisdictional grounds.
The club argued that by the time its accounting period ended on June 30, 2023, it was no longer a Premier League member, having been relegated the previous month. An independent Appeal Board agreed, concluding the Premier League had no jurisdiction to pursue the case.
At the heart of the dispute was whether the League could sanction a club for financial losses incurred during an accounting period when it was no longer a member. The Appeal Board decided it could not, suggesting that any breach could have stemmed from post-relegation activity.
The Premier League challenged the Appeal Board’s ruling via arbitration but failed to overturn it, despite the tribunal disagreeing with the decision.
“It [the Appeal Board] dismissed the Premier League’s challenge, finding (consistent with the arguments made by the Club all along) that the Appeal Board decision ‘could not sensibly be seen as resulting from a perverse interpretation of the law’,” stated Leicester City.
BC.GAME deal adds to scrutiny
Alongside alleged financial rule breaches, Leicester City’s sponsorship agreement with BC. GAME has also come under scrutiny..
The gambling brand was among several operators affected by the collapse of TGP Europe, a white-label provider, which exited the UK market after a £3.3m regulatory fine earlier this month.
While the deal with BCGame remains entirely legal and consistent with common industry practices – many Premier League and Championship clubs have similar arrangements – fan criticism has intensified.
Supporters have raised concerns not only about the prevalence of gambling partnerships in football but also the growing number of deals linked to overseas-facing websites.
Such arrangements highlight a deeper issue. With strict PSR limits capping financial losses to £105m over three seasons in the Premier League, clubs face increasing pressure to maximise commercial income.
Partnerships like the one with BC.GAME may be seen as a necessary means to remain competitive and compliant.
