How Leicester used a little-known loophole to avoid points deductions

LEICESTER CITY have reportedly taken advantage of a little-known loophole to avoid points deductions.

But they could still be punished next season.

The Foxes are flying high in the Championship under Enzo Maresca and are three points clear in the table.

Leicester rebuilt their squad last summer after relegation from the Premier League.

But their spending led other clubs to question whether they had breached the top flight’s £105million limit for losses in the past three years.

Rivals also believe Leicester will exceed the total losses of £83 million they can make in the same period.

But it was unclear which league was responsible for controlling Leicester’s finances as they went into administration last season.

And the Mail claims Leicester have avoided sanctions this season by claiming to be both a Premier League and EFL club at the same time.

Having been relegated from the Prem last season, Leicester have not been forced to adhere to top spending breach rules this season.

And at the same time, the Foxes told EFL chiefs they didn’t have to stick to their rules either because they were a Prem club in the previous campaign.

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The bizarre loophole means Leicester will avoid trouble with the Premier League or the EFL this season.

They may still end up being punished if they have exceeded the loss limits.

But that wouldn’t start until next season, meaning the Foxes could gain promotion if they finished in the top two of the Championship or won the play-offs.

Leicester were able to take advantage of the loophole after the Premier League introduced new rules last summer to speed up PSR (Profit and Sustainability) cases.

Because the Foxes dropped out of the top flight, the rules do not apply to them this season.

But Everton, who defeated last season, were hit with a 10-point deduction (since reduced to six) for the same offence.