The Premier League has expressed its surprise and disappointment after an independent panel ruled in favor of Leicester City in their appeal over an alleged breach of Profitability and Sustainability Rules (PSR). The panel found that Leicester’s accounting period ended after they were relegated, meaning the Premier League did not have the jurisdiction to punish them for the alleged breach.
The decision all but ensures that Leicester will not face a points deduction this season. The Premier League is unlikely to appeal this decision due to the high legal bar required for such action.
Initially, the Premier League alleged that Leicester had exceeded the permitted £105m losses over three seasons, with a reported loss of £129.4m leading up to the 2022/2023 season. However, Leicester contended that as they had been relegated to the EFL when their accounting period ended, they were no longer bound by the Premier League rules. Furthermore, they maintained that they had not breached the Profitability and Sustainability Rules.
In response to the appeal board’s decision, Leicester welcomed the verdict, emphasizing that it supports their consistent position that any action against the club should align with the applicable rules.
This development concludes the dispute between Leicester and the Premier League regarding the alleged breach of PSR, providing clarity on the jurisdiction of the league’s regulations and marking a significant outcome for Leicester City.
A statement made by the Premier League:
“The Premier League is surprised and disappointed by the independent Appeal Board’s decision to uphold an appeal lodged by Leicester City FC regarding the League’s jurisdiction over the club’s alleged breach of its Profitability and Sustainability Rules (PSRs) when the club was a member of the Premier League.
“In March this year, the Premier League referred Leicester City to an independent Commission for an alleged breach of PSRs relating to the assessment period ending financial year 2022/23. Once submitted, the club’s financial results demonstrated that it had exceeded the permitted £105m threshold for the relevant period.
“Leicester City subsequently challenged the Commission’s authority to hear the case on the grounds of jurisdiction. This challenge was dismissed by the independent Commission, a decision which Leicester City appealed.
“That appeal has been upheld by an independent Appeal Board on the grounds that the club’s accounting period which ended on 30 June 2023, came after the point the club had ceased to be a member of the League.
“The Appeal Board’s decision effectively means that, despite the club being a member of the League from Seasons 2019/20 to 2022/23, the League cannot take action against the club for exceeding the relevant PSR threshold in respect of the associated accounting periods.”
A statement made by Leicester City:
“Leicester City welcomes the Appeal Board’s comprehensive decision, which supports our consistently stated position that any action against the club should be pursued in accordance with the applicable rules.
“To avoid any misunderstandings which may arise in light of the statement which has been issued by the Premier League in response to the appeal decision, Leicester City wishes to emphasise the finding of the Appeal Panel that, when considering the wording which is actually used in the Premier League rules (in accordance with established principles of English law) the club did not breach the Premier League PSRs for the assessment period ending 30 June 2023.
“In its decision, the Appeal Board (which was made of up a panel of three experienced, senior lawyers, two of whom are former Court of Appeal judges) identifies flaws in the drafting of the Premier League’s rules.
“In challenging the Premier League’s attempts to charge Leicester City, the club has simply sought to ensure (in the interests of providing consistency and certainty for all clubs) that the rules are applied based on how they are actually written.”
World of sports 
Leave a comment