Leicester City has successfully appealed a decision that could have led to a points deduction for an alleged breach of Premier League Profitability and Sustainability (PSR) rules.
The club returned to the Premier League this season after winning the 2023/24 Championship.
They challenged the jurisdiction of an independent commission ruling on their case.
The appeal was upheld by an independent appeal board, which agreed that the commission did not have jurisdiction since Leicester’s accounting period ended on June 30, 2023. By that time, the club was no longer a Premier League member due to their relegation the previous month.
Under PSR rules, Premier League clubs are permitted to lose up to £105 million over a three-season period. However, since Leicester was not a Premier League club at the end of their accounting period, the board ruled that any potential losses could partly be attributed to their activities after leaving the league.
Leicester released a statement following the outcome, stating, “Leicester City welcomes the Appeal Board’s comprehensive decision, which supports our consistently stated position that any action against the Club should be pursued in accordance with the applicable rules.”
However, the Premier League is not satisfied with the final judgement. The board released a statement noting that the decision means the league cannot take action against Leicester for exceeding the loss threshold for the period in question.
“The Appeal Board’s decision effectively means that, despite the club being a member of the League from Seasons 2019/20 to 2022/23, the League cannot take action against the club for exceeding the relevant PSR threshold in respect of the associated accounting periods.”
In response, Leicester City clarified that the Appeal Panel found that the club did not breach PSR rules for the assessment period ending June 30, 2023.
