By Martin Graham | 4th Sep 2024
Leicester City have successfully contested a decision that could have resulted in a points deduction due to an alleged infringement of Premier League profit and sustainability regulations (PSR). An independent panel determined that the Premier League did not have the authority to penalize Leicester since the club had been relegated to the English Football League (EFL) Championship by the end of their accounting period on 30 June 2023.
The Premier League expressed surprise and disappointment at the panel’s ruling. They had previously charged Leicester with violating spending regulations, which led to an appeal by the club. Although an independent commission initially ruled that the league could pursue action, Leicester contested this on the grounds that they were no longer a Premier League entity when the charge was filed. The panel’s decision was announced on Tuesday.
Discrepancies in PSR rules highlighted
The PSR rules stipulate that clubs must not exceed a loss of £105 million over a three-season span. The charges against Leicester pertained to the financial period concluding at the end of the 2022-23 season. However, Leicester’s relegation to the Championship meant their financial statements were submitted after they were no longer part of the Premier League.
In its ruling, the panel noted that the PSR regulations are “far from well drafted” in certain areas. The Premier League warned that if the appeal board’s decision stands, it might create a situation where clubs exceeding the PSR limits could evade accountability under similar circumstances. The Premier League stated that this outcome was not the intended effect of the rules.
The panel concluded that Leicester was not subject to the Premier League’s disciplinary authority when the financial calculations were made, thereby ruling that the club was not in breach of the regulations.
