Leicester City FC To Challenge Legality Of FFP Rules
Premier League champions Leicester City Football Club (LCFC) remain locked in a legal battle with the Football League, insisting that they will be prepared to fight their case all the way.
The Foxes are embroiled in a dispute arising from the club’s spending during the 2013/14 Championship season.
A Football League charge alleges that LCFC breached Financial Fair Play (FFP) rules during the 2013/14 title-winning season.
LCFC suggest the regulations that they are accused of breaking are “unlawful”.
The FFP regime was introduced to put a cap on the sum that football clubs were allowed to lose during the course of a football season.
The aim was to essentially curb overspending and reduce the likelihood of a club ultimately going bust, amid concerns that too many sides were haemorrhaging substantial amounts of cash.
In the 2013/14 season, losses among Championship clubs had been limited to £8 million or else a team would be punished with a transfer ban or financial penalty. Leicester are said to have notched up a deficit of more than £20 million during the season in question.
In its recent accounts, the club said: “[We] submitted an FFP return to the Football League in relation to the 2013/14 season in December 2014.”
“The Football League has subsequently indicated that they do not accept the return as compliant.”
“The club is now challenging the legality of the 2012 Championship FFP regulations as the club’s directors believe them to be unlawful and the directors are confident that no material liability will arise from the process.”