Leicester City FC has avoided a points deduction and won its appeal against a decision regarding the Premier League’s jurisdiction over the club’s alleged breach of its Profitability and Sustainability Rules (PSRs).
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. PSR rules note that clubs cannot lose more than £105m over a three-season 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.
In a statement the Premier League said: “The Premier League is very disappointed with the Appeal Board’s decision, and the limited reasons provided for it. The League remains of the view that the original Commission took the right approach in interpreting the rules in a practical and workable way that gives effect to their intended purpose.
“In overturning the original Commission’s findings, the Premier League considers the Appeal Board’s decision fails to take into account the purpose of the rules, all relevant parts of the PSRs and the need for effective enforcement of alleged breaches to ensure fairness among all clubs.”
In a statement, Leicester City said: “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.”
