Leicester City have successfully won an appeal against a ruling that could have resulted in a points deduction for allegedly breaching the Premier League’s Profitability and Sustainability Rules (PSR).
An independent panel determined that the Premier League did not have the jurisdiction to sanction the club over the matter.
The Premier League expressed its “surprise and disappointment” at the decision of the independent panel. Meanwhile, Leicester City maintained that they “simply sought to ensure that the rules are applied based on how they are actually written.”
The Foxes were initially charged by the Premier League for breaching spending rules. They appealed against the charge, but an independent commission ruled that the Premier League could take action.
Leicester City then lodged another appeal, arguing that the Premier League’s action was invalid since the club was in the English Football League (EFL) at the time the charge was made. The outcome of this appeal was announced on Tuesday.
According to PSR rules, clubs are not permitted to lose more than £105 million over a rolling three-season period. Last season, both Nottingham Forest and Everton were handed points deductions after being found in violation of these financial regulations.
In its ruling, the independent panel noted that the PSR “are, in relevant parts, far from well drafted.” The Premier League, reacting to the decision, stated: “If the Appeal Board is correct, its decision will have created a situation where any club exceeding the PSR threshold could avoid accountability in these specific circumstances. This is clearly not the intention of the rules.”
The panel upheld Leicester’s appeal, concluding that the Foxes were “no longer a club” governed by the PSR rules when the financial calculations were carried out.
The panel added, “It is not obvious why such a club should be subject to the disciplinary jurisdiction of the Premier League.” Therefore, Leicester City were found “not in breach, and should not be treated to be in breach, of the rules.”
