Manchester City, Chelsea and other clubs in the Premier League will be inspired by the latest victor over the Premier League’s Profitability and Sustainability Rules (PSR) by newly-promoted side Leicester City.
The Foxes, after spending time in the EFL Championship following their relegation from the top flight in the 2022/23 season, came back to the Premier League as champions of the second division to meet accusations of financial impropriety from the Premier League. They were in danger of being docked points in what is already looking like a tough season for them but they have now come out on top in the hearing to determine what would have been their punishment.
The Premier League referred them to an independent commission in March 2024 over suspected offences regarding PSR. Leicester then challenged the commission’s jurisdiction to hear the case, stating that the decisions they took happened when they were still a Championship team; a challenge which the body dismissed earlier this year.
The King Power Stadium side then took the case to an independent appeal board which reversed the commission’s decision. The appeal board ruled that there were no breaches on the Foxes’ part in the assessment period ending June 30, 2023.
A statement released by Leicester added that the appeal board also found ‘flaws in the drafting of the Premier League’s rules’. “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,” the Foxes statement began.
“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, the club did not breach the Premier League PSRs for the assessment period ending 30 June 2023.”
In response, the Premier League released their own statement which reads: “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.”
Football clubs in the UK are mandated to report losses within a specified limit or face sanctions. Leicester, who have financial troubles, are believed to have flouted this rule and were set to face a fate similar to Everton and possibly Manchester City before their successful appeal.
