Terrible news hits Manchester United as the club and their Premier League counterparts could soon face a decision regarding a potential points deduction following a reported £113m financial loss.

The Premier League is expected to file complaints on Tuesday against clubs found in violation of its profitability and sustainability regulations (PSR), which could lead to potential points deductions. Reports suggest Leicester City might be among those charged, though neither the club nor the league has made an official statement.

According to sources close to Chelsea’s ownership, the club remains confident in its compliance with PSR rules despite substantial spending following the 2022 acquisition by a consortium led by Todd Boehly and Behdad Eghbali. Everton and Nottingham Forest also assert their adherence to the rules.

Both Everton and Forest were charged last January for PSR breaches, which occur when a club exceeds the allowable £105 million loss over three seasons, a figure adjusted for any seasons outside the Premier League. These charges related to their 2022-23 financial reports and were addressed by the league’s standard procedures, resulting in points deductions—two for Everton and four for Forest.

Everton had also faced a 10-point deduction in November 2023 for exceeding PSR limits for the 2021-22 period. This penalty was later reduced to six points following an appeal in February 2024. Clubs with cumulative losses for 2021-22 and 2022-23 were required to submit their 2023-24 accounts by December 31, 2024, with any complaints to be issued by the Premier League within two weeks.

Manchester United, which reported a £113.2 million loss for the fiscal year ending June 30, 2024, in September, maintains confidence in its compliance. The club cites allowable deductions for investments in infrastructure, academies, charitable initiatives, and women’s football, which are excluded from the £105 million cap.

Speculation persists that Leicester City could face repercussions after being charged in March for a PSR breach tied to their 2022-23 accounts. However, a September ruling determined that an independent commission under Premier League rules lacked jurisdiction over Leicester following their relegation to the EFL by the end of that accounting period. The Premier League had argued Leicester recorded a £129.4 million loss over the three seasons ending in 2022-23.

Chelsea, meanwhile, asserts its compliance, bolstered by league-approved transactions, including the sale of two hotels to a company linked to its ownership group and the sale of the women’s team to the club’s parent company. These deals are under Premier League scrutiny but comply with regulations that allow profits from the sale of fixed assets to be included in revenue calculations if they reflect fair market value.

Efforts to close loopholes allowing such transactions failed at the league’s 2023 annual general meeting, where only 11 clubs supported the proposed changes—short of the required 14. In August, Premier League CEO Richard Masters expressed approval of clubs finding competitive advantages within the rules, provided they remain compliant.