Despite their financial difficulties, Leicester City have spent money on upgrading their squad in order to improve their chances of escaping relegation this season.
That is the opinion of finance specialist Stefan Borson, who exclusively told Football Insider that he is astonished Steve Cooper’s team spent so much money during the summer transfer window.
Leicester were charged in March with violating the Premier League’s PSR regulations for 2022-23, with a points deduction being the most likely punishment.
They declared losses of £89.7 million in 2022-23, despite the fact that top-tier clubs are only allowed to lose £105 million over a rolling three-year period.
However, the club continued to lavish the dough on new acquisitions throughout the summer transfer window, spending more than £70 million on nine new players.
If Leicester City is relegated, they will face larger financial challenges.
Borson agreed, however, that relegation this season would be significantly more costly for Leicester than absorbing another potential PSR hit the next season.
He told Football Insider: “We are low on information about their finances going into this season.
“I’m amazed they’re spending this way.
“But they probably look at it knowing that they will be deducted some points this season.”
“Therefore, they know they are going to have to strengthen on the pitch, otherwise, they are going to be in serious danger of relegation, which would be far more expensive than taking a hit on PSR next season.”
In other news, Leeds fans are outraged with Leicester’s points deduction update.
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