Analysing Leicester City’s Financial Situation Ahead of Premier League Return | OneFootball

Foxes in Flux: Leicester City Face Uncertain Summer After Promotion and Maresca Exit

Leicester City’s return to the Premier League is tinged with uncertainty. The Foxes face a summer of upheaval as they grapple with potential sanctions for breaching financial regulations (PSR), the recent departure of manager Enzo Maresca to Chelsea, and a looming transfer embargo.

PSR Cloud Hangs Over King Power

Leicester’s promotion joy is tempered by a potential points deduction next season. An ongoing legal battle with the Premier League and EFL centres on their interpretation of financial rules. The club argues they shouldn’t be judged by Championship regulations as they spent most of the season in the top flight.

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The situation is further complicated by a potential second PSR charge if the Premier League deems them in breach for the 2023-24 season. This scenario echoes Sheffield United’s recent docking of points for financial irregularities.

Fire Sale or Calculated Clearing Out?

Leicester can make player sales before 30th June to appease financial regulators. Harvey Barnes’ move to Newcastle and Timothy Castagne’s switch to Fulham gave them a financial boost last summer. Key midfielder Kiernan Dewsbury-Hall, linked with Brighton and Brentford, could command a significant fee, but he’s publicly stated his desire to stay.

Selling players is nothing new for Leicester. Over the past eight years, stars like Harry Maguire, Riyad Mahrez, and N’Golo Kante have all departed for hefty sums. However, the current PSR spotlight intensifies the need to generate funds through player sales.

Out-of-favour players like Daniel Iversen and Harry Souttar are likely to leave. Goalkeeper Ward, defender Thomas, and midfielder Praet are also deemed surplus to requirements. The club insists they won’t be forced into fire sales and are limited by market interest. Compensation from Chelsea for Maresca, rumoured to be £8-10m, could also ease financial pressures.

Registration Embargo Lifted, But Questions Remain

Leicester’s official return to the Premier League on Thursday signifies the end of the EFL’s registration embargo. This allows them to progress with summer transfers. Crucially, they’ve been able to retain key players like Jamie Vardy, with contract talks ongoing.

Wilfred Ndidi’s future is less certain. The Foxes have offered a new deal, but Premier League and overseas clubs are circling. Jannik Vestergaard’s turnaround under Maresca could see him rewarded with a new contract, while the futures of Premier League winner Marc Albrighton and Kelechi Iheanacho remain undecided.

Back to Reality in the Premier League

Leicester’s return to the top flight is a far cry from their fairytale 2016 title win. Survival is the immediate priority, with 17th likely the target.

The recent struggles of Burnley serve as a cautionary tale. Leicester’s ambition is to rebuild their former strength, but realism dictates that this will be a gradual process. As Foxes Trust chairman Ian Bason explains, managing expectations is key, especially for younger fans who haven’t experienced the club’s yo-yo past.

Leicester City face a summer of transition. The coming months will determine their squad for the upcoming Premier League season and potentially, the financial penalties they may face.