Leicester City FC has successfully won its appeal regarding an alleged violation of the Profitability and Sustainability Rules (PSR), significantly reducing the likelihood of a points deduction this season.
The appeal board’s decision marks a pivotal moment for the Foxes, as the Premier League expressed surprise and disappointment over the ruling but is unlikely to pursue further legal action due to the high threshold for such appeals.
Initially, the Premier League contended that Leicester had incurred a loss of £129.4 million over the three seasons leading up to the 2022/23 season, exceeding the permitted loss threshold of £105 million. Leicester argued that, having been relegated to the EFL when their accounting period concluded, the Premier League lacked jurisdiction to impose sanctions.
The appeal board ruled in favor of Leicester, stating that the Premier League could only speculate about the potential breach of PSR as Leicester had already been relegated when their accounting period ended.
Leicester City welcomed the decision, reiterating that it aligns with their stance that any disciplinary actions should adhere to the relevant rules.
Premier League Responds
A statement from the Premier League noted their surprise at the independent Appeal Board’s decision and highlighted the original referral stemming from alleged PSR violations during Leicester’s membership. The statement emphasized that financial results showed the club had indeed exceeded the loss threshold prior to their relegation.
However, the Appeal Board clarified that actions against Leicester could not be taken due to the timeline of their accounting period ending after their membership ceased.
Leicester’s Position
The club expressed appreciation for the ruling, underscoring that it confirms their interpretation of the applicable rules. Leicester pointed out that the Appeal Panel’s decision, composed of experienced legal professionals, identified flaws in the Premier League’s rule drafting.
In challenging the Premier League’s approach, the club aims to ensure clarity and consistency in the interpretation and application of rules across all teams.
