Leicester’s appeal against the Premier League’s Profit and Sustainability charge has been rejected by an independent commission.
The commission determined that the top flight can penalize the Foxes for an alleged breach covering the three seasons leading up to 2022-23, following the charges issued in March.
Leicester argued that since they were in the English Football League (EFL) when the charge was issued, the Premier League had no jurisdiction, as they were relegated in 2023. However, the commission ruled that the Premier League can continue pursuing the charges.
Leicester are appealing against this latest ruling.
A statement said: “LCFC notes the publication today of the decision of the Premier League Commission. The Club is disappointed with the decision, which does not appear to reflect the wording of the Premier League’s Rules, and has lodged an appeal.”
The Premier League confirmed the appeal had been dismissed.
“An independent Commission has dismissed a challenge by Leicester City FC that it has no jurisdiction to consider an alleged breach of Profitability and Sustainability Rules (PSRs),” a statement read.
Leicester, who returned to the Premier League at the first attempt by winning the Championship last season, were charged in March for an alleged breach of the Premier League’s Profit and Sustainability (PSR) rules.
At the time, the club expressed their “surprise” and “disappointment” at the timing of the Premier League’s actions, as they were not in the top flight.
Leicester stated they would “defend” themselves “from any unlawful acts by the football authorities, should they seek to exercise jurisdiction where they cannot do so.”
Their latest accounts for the year ending 30 June 2023 confirmed an £89.7m loss, bringing their total losses over their previous three Premier League campaigns to more than £215m.
The club will be able to claim ‘add backs,’ such as money spent on football infrastructure, against that figure.
In the 12 months up to May 2022, they lost a club-record £92.5m. The previous year, when they won the FA Cup for the first time, the club reported a pre-tax loss of £33.1m.
Top-flight rules allow clubs to incur losses of £105m over a three-year period, or £35m per season, before facing sanctions.