Leicester City recently won an appeal against a decision that could have resulted in a points deduction for an alleged breach of the Premier League Profitability and Sustainability (PSR) rules. This decision comes after the club was back in the top flight following their Championship win last season.
The club appealed the decision on the grounds that the independent commission ruling on the case did not have jurisdiction. This appeal was upheld by an independent appeal board, with the conclusion that Leicester’s accounting period ended on June 30, 2023, after they were no longer a Premier League member due to relegation to the second tier.
PSR Rules
Premier League clubs are only allowed to incur losses of up to £105 million over a three-season period under the PSR rules. In the previous term, both Everton and Nottingham Forest faced points deductions for breaching these rules. The appeals board determined that Leicester could not have surpassed the loss threshold before June 30 and that any losses could be attributed to their trading activities after leaving the Premier League.
Club’s Response
In a statement, Leicester City expressed their satisfaction with the Appeal Board’s decision. They highlighted that any action against the club should be in line with the applicable rules. The club was initially referred to an independent commission by the Premier League in March, where their challenge to the jurisdiction was dismissed.
The Premier League expressed surprise and disappointment at the Appeal Board’s decision, stating that despite being a member of the League from Seasons 2019/20 to 2022/23, no action can be taken against Leicester for exceeding the PSR threshold. Leicester responded with their own press release, emphasizing that they did not breach the Premier League PSRs for the assessment period ending on June 30, 2023.
Overall, Leicester City’s successful appeal against a potential points deduction serves as a reminder of the complexities involved in enforcing financial regulations within football leagues. It highlights the importance of clear communication and adherence to the rules to avoid misunderstandings and disputes between clubs and governing bodies.
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