Leicester have won an appeal against a decision that could have led to a points deduction for an alleged breach of Premier League Profit and Sustainability Rules (PSR).
The Premier League said it was “surprised and disappointed” by the decision of an independent panel to rule that it could not punish Leicester for allegedly exceeding the £105m PSR threshold between 2019 and 2023.
The panel found that Leicester’s accounting period ended on June 30, 2023 after the club were relegated from the top flight – meaning the Premier League did not have jurisdiction to punish them.
The Premier League said that the appeal board’s decision “effectively means that, despite the club being a member of the (Premier) 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.
They added: “It is of critical importance that the Premier League is able to enforce its rules consistently to maintain the principle of fairness. The League will now consider what further action it can take to ensure this is the case.”
Leicester said it “welcomes” the decision, adding that the verdict “supports our consistently stated position that any action against the club should be pursued in accordance with the applicable rules”.
Welcomed by Leicester
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.”
Premier League “surprised and disappointed”
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.”
