The Premier League has confirmed that no clubs have been charged with breaching Profit and Sustainability rules between 2021 to 2024.
Clubs reporting losses for the first two years of the cycle were required to submit accounts for the year ending June 2024 to the Premier League by December 31, ensuring compliance with the P&S framework. Under these rules, clubs may not incur losses exceeding £105 million over a three-season rolling period, with adjustments for teams that spent time outside the Premier League during the cycle.
Concerns were raised earlier about several clubs nearing the league’s loss thresholds, including Leicester City. The Foxes had previously avoided sanctions after successfully appealing a charge in September 2023. This charge pertained to losses recorded up to the end of the 2022-23 season. An independent panel ruled the Premier League lacked jurisdiction to punish Leicester because they had been relegated to the EFL Championship before the end of the accounting period on June 30, 2023.
In a joint statement on Tuesday, Leicester City and the Premier League confirmed the matter remains “the subject of confidential arbitration proceedings.”
Background of Profit and Sustainability Rules
The Premier League implemented Profit and Sustainability regulations in the 2015-16 season to curb financial mismanagement, following incidents like Portsmouth’s 2010 administration. These rules permit clubs to post losses of up to £105 million over three seasons, with exemptions for spending on academies, community projects, and infrastructure.
Recent Sanctions
Everton became the first club charged under P&S rules in 2023, resulting in a 10-point deduction for exceeding loss limits by £124.5 million through 2021-22. This penalty was later reduced to six points on appeal. In January 2024, Everton faced further sanctions, receiving an additional two-point deduction for surpassing the loss cap by £16.6 million for the 2022-23 period.
Nottingham Forest also faced penalties in 2024, with a four-point deduction after their reported losses for the same cycle exceeded the threshold by £34.5 million. Clubs like Forest, promoted to the Premier League during the reporting period, are subject to adjusted thresholds due to their time spent outside the top flight.
As of now, the Premier League has confirmed that no new breaches have been reported for the 2021-2024 cycle, reflecting the effectiveness of the regulatory framework in managing club finances.
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