Leicester City has successfully won an appeal against a decision that could have resulted in a points deduction for allegedly breaching the Premier League’s profit and sustainability rules (PSR).
An independent panel determined that the Premier League did not have the authority to penalize Leicester because the club had been relegated to the EFL Championship when their accounting period concluded on 30 June 2023.
The Premier League expressed being “surprised and disappointed” by the panel’s ruling.
Leicester maintained that they were simply ensuring that the rules were applied as they were written.
The Foxes were initially charged by the Premier League for violating spending regulations and appealed the charge, but an independent commission allowed the league to proceed with action.
Leicester then appealed this decision, arguing that they were part of the English Football League (EFL) when the charge was issued, and the outcome was revealed on Tuesday.
Under PSR regulations, clubs are not permitted to lose more than £105 million over a three-season span.
The Premier League’s charges related to the three-year period ending with the 2022-23 season.
However, Leicester was relegated to the Championship at the end of that season, and the club submitted their accounts only after they were no longer a Premier League member.
Last season, Nottingham Forest and Everton both received points deductions after being found in breach of PSR rules.
Board says PSR rules ‘far from well drafted’
In its ruling, the independent panel said the PSR rules “are, in relevant parts, far from well drafted”.
Reacting to the decision, the Premier League added: “If the appeal board is correct, its decision will have created a situation where any club exceeding the PSR threshold could avoid accountability in these specific circumstances.
“This is clearly not the intention of the rules.”
The panel upheld Leicester’s appeal and said the Foxes were “no longer a club” governed by the profit and sustainability rules when the calculation was carried out.
“It is not obvious why such a club should be subject to the disciplinary jurisdiction of the Premier League,” their decision read.
Leicester were “not in breach, and should not be treated to be in breach, of the rules”, the panel added.