How Leicester used little-known loophole to avoid points deduction… but could still face punishment next season

LEICESTER CITY have reportedly used a little-known loophole to avoid a points deduction. 

But they could still face punishment next season.

GettyLeicester have used a loophole to avoid a points deduction this season[/caption]

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

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

But their spending led to other clubs questioning whether they had broken the top flight’s £105million limit on losses over the past three years.

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

But it was unclear which league was responsible for checking Leicester’s finances, given they went down last season.

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

As they were relegated from the Prem last season, Leicester have not been forced to abide with top-flight spending breach rules this term.

And at the same time, the Foxes told EFL chiefs they did not have to comply with their rules either, having been a Prem club in the previous campaign.

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The bizarre loophole means Leicester will avoid any issues from either the Premier League or EFL this term.

They could still eventually be punished if they have breached loss limits.

But that would not kick in until next season, allowing the Foxes to be promoted should they finish in the Championship’s top two or win the play-offs.

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

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

But Everton, who beat the drop last season, were hit by a 10-point deduction — since reduced to six — for the same breach.