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It was the EFL, not the Premier League, who let them off the Arsenal game.
But PL does seem to be pretty much a walkover. Leicester have had their game called off in part due to players at AFCON.
aggi-
The reason Leicester could go ahead with the FA cup tie against Watford on Saturday was because they could name eight (academy) players in the squad, none of whom are eligible for PL games. And, even then, the bench was only made up of seven (rather than nine) substitutes.
Of the named PL squad, Leicester are missing 16 players from a squad of 28 - Soyuncu, Evans, Justin, Fofana, Bertrand, Ricardo, Thomas, Vardy, Daka, Ihenacho, Amartey, Mendy, Ndidi, Soumare, Dewsbury-Hall and Castagne - through Covid, injury or Afcon. This leaves them with 12 players, 3 of whom are goalkeepers. Whether or not the PL is a "walkover", I'm not sure how Leicester are supposed to fulfill the fixture with Everton.
Markyboy
Different rules between FA and PL.
FA say that if your squad is so depleted you have to field your entire U18 squad in the FA Cup you field your entire U18 squad in the FA Cup.
PL say "ooh, someone's got a hang nail and someone else has a sniffle, we'll postpone the fixture for you".