Leicester City recently won an appeal against a potential points deduction due to an alleged breach of Premier League Profitability and Sustainability (PSR) rules. This decision came after an independent commission ruling was deemed to lack jurisdiction by an independent appeal board. The club’s accounting period ended on June 30, 2023, after they were relegated to the second tier.
Under the PSR rules, Premier League clubs are permitted to lose up to £105 million pounds ($137.56 million) over a three-season period. Previous cases involving Everton and Nottingham Forest resulted in points deductions for exceeding these limits. The key point in Leicester’s appeal was that they could not have breached the threshold before June 30, as their trading activities after relegation could have contributed to any losses.
Leicester City expressed their satisfaction with the Appeal Board’s decision, emphasizing that any action against the club should align with the applicable rules. The club was initially referred to the independent commission in March, with the commission’s jurisdiction being challenged. The Premier League expressed surprise and disappointment over the Appeal Board’s ruling, as it prevented them from taking action against Leicester for exceeding the PSR threshold.
In response to the Premier League’s statement, Leicester released their own press release clarifying that, based on the actual wording of the rules, they did not breach the PSRs for the assessment period ending on June 30, 2023. This statement aimed to avoid any misunderstandings that could arise from the league’s reaction to the appeal decision.
Overall, the successful appeal by Leicester City showcases the importance of understanding the specifics of the rules and timing concerning PSR compliance. The case highlights the complexities involved in financial regulations within football and the significance of clear communication between clubs and league authorities.