Fresh Premier League points deduction claim made as Newcastle United's rivals await punishment

Championship leaders Leicester City have been scrutinised by rival clubs for alleged Financial Fair Play breaches.

The Foxes currently sit three points clear at the top of the Championship and five points inside the automatic promotion places as they look for an immediate return to the Premier League following relegation last season. But they could be hit by a major setback according to recent reports.

Premier League and Championship clubs believe Leicester have breached the English top flight's Profitability and Sustainability Rules which limit clubs to losses of £105million over a three-season period. There is also the belief that The Foxes have exceeded the £83million loss limit set by the EFL over a three-year period.

But with just 10 games remaining in the Championship this season, Leicester could secure promotion before any potential punishment materialises.

Leicester's most recent accounts show losses of £141.75million over a three-year period which doesn't include last season. But the club are expected to release updated accounts later this month.

While The Foxes accounts are likely to show the club over the £105million limit, that isn't confirmation that the club are in breach of PSR as certain losses are allowed to be offset such as building work and academy investment. There is plenty of tension amongst clubs regarding PSR after the Premier League handed Everton a 10-point deduction for breaching the financial rules. This was later reduced to six points but The Toffees have since been charged again and are awaiting punishment.

Premier League side Nottingham Forest are also awaiting punishment after being charged with PSR breaches.

If Leicester are found guilty, the club could also be handed a points deduction. However, there are variables to consider given the lack of certainty over which division The Foxes will be playing in next season.

The Premier League discussed potential changes to PSR rules in a shareholders meeting last month.

Premier League chief executive Richard Masters suggested UEFA's squad cost ratio model is something that could be adopted in the future.

Masters said last month: “We have historically aligned with UEFA, because seven or eight of our clubs are in European competition, we need to consider whether that is an appropriate move for us, how we do that and when."