Leicester’s appeal against the Premier League’s Profit and Sustainability charge has encountered a setback as an independent commission has upheld the ruling. The commission’s decision allows the top flight to proceed with potential sanctions against the Foxes for an alleged breach spanning the three seasons leading up to 2022-23, following the initial charge in March.
Despite Leicester’s appeal, contending that the Premier League lacked jurisdiction as they were in the English Football League (EFL) when the charge was issued and subsequently relegated in 2023, the commission’s ruling stands in favor of the Premier League’s ability to pursue the matter.
In response to the outcome, Leicester expressed disappointment with the decision, emphasizing that it seemingly does not align with the wording of the Premier League’s Rules. As a result, the Club has lodged an appeal against the latest ruling, seeking to contest the commission’s decision. A statement said: “LCFC notes the publication today of the decision of the Premier League Commission. The Club is disappointed with the decision, which does not appear to reflect the wording of the Premier League’s Rules, and has lodged an appeal.”
Notably, Leicester’s trajectory saw them return to the Premier League at the first attempt by securing the Championship title last season. Their legal tussle with the Premier League stems from the charge lodged in March for an alleged breach of the Premier League’s PSR rules, prompting the club to express surprise and disappointment at the timing of the actions, particularly while they were not in the top flight at the time.
The club further reiterated their commitment to defending themselves from any perceived unlawful acts by football authorities, emphasizing their stance against the exercise of jurisdiction where they deem it unwarranted.
Financially, Leicester’s latest accounts for the year ending 30 June, 2023 revealed an £89.7m loss, contributing to their total losses exceeding £215m across their previous three Premier League campaigns. It’s noteworthy that the club can offset certain expenditures, such as investments in football infrastructure, against this figure, potentially alleviating the financial impact.
Delving into specific financial performances, in the 12 months up to May 2022, Leicester incurred a club record £92.5m loss. Moreover, a year earlier, during the season they clinched the FA Cup for the first time, the club reported a pre-tax loss of £33.1m.
Considering the regulatory context, top-flight rules permit clubs to incur losses of up to £105m over a three-year period, or £35m per campaign, prior to facing potential sanctions. These financial parameters further underscore the significance of Leicester’s ongoing appeal and the broader implications for the club’s financial management within the Premier League framework.
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