Leicester City has successfully appealed against a decision that could have led to a points deduction for an alleged breach of the Premier League Profit and Sustainability (PSR) rules. An independent panel determined that the Premier League did not have the jurisdiction to impose penalties on the club.
In response to the ruling, the Premier League stated they were “surprised and disappointed” by the outcome. Leicester maintained that they were “simply seeking to ensure that the rules are applied as they are written.”
The Foxes were charged by the Premier League for breaching spending rules. Following the charge, they appealed, but an independent commission originally ruled that the league could take action against them. Leicester subsequently appealed this decision, arguing that they were in the English Football League (EFL) at the time the charge was issued. The results of the appeal were announced on Tuesday.
According to PSR rules, clubs cannot lose more than £105 million over a three-season period. The Premier League’s charges pertained to the three-year period ending with the 2022-23 season. However, after being relegated, Leicester filed their accounts only after ceasing to be a Premier League member.
Nottingham Forest and Everton both faced points deductions in the previous season for breaching PSR rules.
Panel’s Ruling on PSR Effectiveness
The independent panel’s ruling mentioned that the PSR rules “are, in relevant parts, far from well drafted.” The Premier League responded, expressing concern that the ruling could create a situation where clubs exceeding the PSR threshold might evade accountability.
The panel concluded that Leicester was “no longer a club” governed by PSR rules when the financial calculations were made. “It is not obvious why such a club should be subject to the disciplinary jurisdiction of the Premier League,” their ruling stated, affirming that Leicester was not in breach of the rules.
Implications for PSR Enforcement
Nick Mashiter, BBC Sport’s football news reporter, noted the sense of relief and vindication at the King Power Stadium following the decision. Leicester argued that the Premier League acted beyond its jurisdiction concerning the PSR charges.
Although some may accuse the club of exploiting a loophole, Leicester aims for the rules to be enforced as intended. Their accounting period was extended to align with the business, and their relegation meant they were no longer bound by Premier League regulations.
While a points deduction had been a possibility, the lifting of that threat eases pressure on the club and manager Steve Cooper, especially after a slow start to the season with just one point from three games.
The Premier League will now reassess its approach to enforcing the rules and consider potential amendments to avoid a similar situation in the future.
Credit: BBC Sport
