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PSR Explained: Which Premier League Clubs Are at Risk After Leicester’s Points Deduction?

Leicester’s six-point penalty was an EFL P&S outcome. Here’s how Premier League PSR works, why its 2023/24 compliance statement is historical, and why the evidence does not establish a current list of clubs at risk.
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The available evidence does not support naming any Premier League club as currently at risk of a PSR points deduction. Leicester City’s six-point penalty was an EFL Profit and Sustainability (P&S) case, not a new Premier League PSR sanction. The Premier League said all 20 clubs met its PSR rules for 2023/24, but that historical assessment does not show which clubs may be exposed in later periods.

What happened to Leicester City?

Leicester received a six-point deduction in the Championship for breaching the EFL’s P&S rules. Its appeal was dismissed in April 2026. The Premier League’s appeal material describes the matter as an EFL P&S case and explains that responsibility for investigating a promoted club can pass to the Premier League. That does not make Leicester’s penalty a fresh Premier League PSR sanction.

Which Premier League clubs are in danger?

No current club-by-club PSR risk list is established by the available evidence. The Premier League’s statement that all 20 clubs complied applies to its 2023/24 assessment only; it is not a guarantee about subsequent seasons. The evidence does not provide current adjusted three-year PSR calculations for every club or identify a club as liable to breach.

A club’s published accounting loss is not enough to establish a PSR breach. PSR uses adjusted figures and permits add-backs, so the reported loss and the league’s adjusted assessment can differ. Naming clubs based only on headline losses would confuse an input with the result of the rules calculation.

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For a meaningful comparison, figures would need to cover the same rolling assessment years and account for permitted adjustments and any Championship seasons affecting the allowance. It would also matter whether the league had charged a club or merely requested accounts, and which financial regime applied.

How does Premier League PSR work?

Under the Premier League PSR framework, adjusted losses are assessed over a rolling three-season period. The ordinary maximum allowance is £105 million over that period, subject to adjustments. It is reduced by £22 million for each season a club spent in the Championship during the relevant period. The allowance is therefore not a simple cap on the accounting loss shown in one year’s accounts.

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That calculation is why the headline £105 million figure cannot be applied without context. A club’s relevant seasons, permitted add-backs and competition history all affect the comparison with the allowance.

How is Leicester’s EFL case different from Premier League PSR?

The rules are related but not interchangeable. Leicester’s concluded case was decided under EFL P&S rules; Premier League clubs were assessed under PSR. The Premier League said the two sets of rules are substantively similar, but the identity of the regulator, the applicable reporting period and the process still matter. A sanction under one regime should not be described as a sanction under the other.

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Regime or assessment What the available evidence establishes What it does not establish
Leicester’s case Six-point EFL P&S deduction in the Championship; appeal dismissed in April 2026. A fresh Premier League PSR sanction.
Premier League PSR, 2023/24 assessment The league reported all 20 clubs compliant for that assessment. Compliance in later periods or a current club-by-club risk ranking.
Premier League SCR system A new financial framework, including a Squad Cost Ratio, takes effect in 2026/27. A PSR result or a way to recast Leicester’s EFL P&S case.

What changes from 2026/27?

Premier League PSR applies through the end of the 2025/26 season. The league says its replacement financial framework takes effect in 2026/27 and includes a Squad Cost Ratio (SCR), alongside sustainability and resilience requirements. SCR limits squad spending to 85% of football-related revenue plus net profit or loss from player sales.

The 2025/26 season is described by the Premier League as a shadow year for SCR, with no enforcement for a breach of those SCR obligations during that season. SCR is a different test from PSR’s rolling adjusted-loss calculation, so an SCR ratio should not be treated as a PSR loss result.

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Does Manchester City’s separate case mean it is at risk under PSR?

An Associated Press report in October 2026 said Manchester City had lost a separate Premier League financial-rules case and appealed; it said possible sanctions could include a points deduction or expulsion. That report does not establish that the proceeding concerns a breach of the ordinary three-year PSR loss test. It should not be used to label City as a PSR-risk club unless an official determination connects the cases.

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What would establish that a club is genuinely at risk?

A responsible assessment needs club-specific evidence tied to the right rules and period, not a league-wide historical statement or a headline loss. Relevant information includes:

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  • the exact three assessment seasons under review;
  • adjusted losses after permitted add-backs;
  • the allowance after accounting for any Championship seasons;
  • whether the league has issued a charge, rather than only requested accounts; and
  • whether the matter concerns PSR, EFL P&S, SCR or a separate financial rule.

Without those details, a specific club ranking or prediction of a future points deduction would go beyond what the available evidence establishes.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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