Leicester City have successfully overturned a decision that would have allowed an independent commission to investigate alleged breaches of the Premier League’s profit and sustainability rules (PSR). The English top flight expressed “surprise and disappointment” at the appeal board’s ruling, which effectively absolves Leicester of any potential points deduction.
The initial claim against Leicester alleged that the club had exceeded the maximum permitted loss of 105 million pounds ($138 million) over a three-season period. However, the appeal board determined that Leicester’s accounting period ended on June 30, 2023, after the club’s relegation from the Premier League. This decision means that the league cannot take action against Leicester for exceeding the PSR threshold during the relevant accounting periods.
Leicester welcomed the verdict, stating that it supported their “consistently stated position that any action against the club should be pursued in accordance with the applicable rules.” The club, which famously won the Premier League title in 2016, could have faced a significant points deduction if found guilty of breaching the financial regulations.
The Premier League’s decision to appeal the board’s ruling highlights the league’s commitment to enforcing its financial regulations. Last season, Nottingham Forest and Everton were both given points deductions for PSR breaches. Manchester City, the reigning Premier League champions, are also facing charges of 115 alleged breaches of financial regulations.
The outcome of Leicester’s appeal raises questions about the effectiveness of the Premier League’s PSR rules. The league will likely review its regulations and consider potential amendments to ensure that clubs are held accountable for financial irregularities.
