Leicester have dodged the initial threat of a points deduction after winning an appeal against a Premier League decision.
The Foxes’ appeal was in relation to an alleged Profit & Sustainability breach for the period ending June 30, 2023.
The Foxes were charged by the Premier League for breaching spending rules.
They appealed against this charge but an independent commission then ruled the Premier League could take action.
Leicester then appealed against that decision – based on the fact they were in the English Football League (EFL) at the time the charge was issued – after moving the end of their financial year to June 30.
This meant that at the end of their financial year, Leicester were no longer a Premier League club and were officially an EFL outfit.
The Commission decided it was impossible to know exactly when Leicester went over allowable losses due to becoming an EFL before the end of the financial period that ended in June 2023.
The financial period for 2023/24 is still being determined.
A statement on Leicester’s website said: “Leicester City has won its appeal against a decision that an independent Commission had jurisdiction to consider an alleged breach by the club of Premier League Profitability and Sustainability Rules (PSRs).
“The Premier League first referred the club to an independent Commission in March 2024 for an alleged PSR breach relating to the assessment period ending 30 June 2023. The Commission dismissed the club’s initial challenge to its jurisdiction to hear the case, but the club’s challenge has now been upheld by an independent Appeal Board, which reversed the Commission’s finding.
“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.
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“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.”
In response, the Premier League wrote: “The Premier League is surprised and disappointed by the independent Appeal Board’s decision to uphold an appeal lodged by Leicester City FC regarding the League’s jurisdiction over the club’s alleged breach of its Profitability and Sustainability Rules (PSRs) when the club was a member of the Premier League.
“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 £105million threshold for the relevant 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.
“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.
“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.
“It is of critical importance that the Premier League is able to enforce its rules consistently to maintain the principle of fairness. The League will now consider what further action it can take to ensure this is the case.
“Appeal Boards are independent of the Premier League and member clubs and are appointed by the independent Chair of the Premier League Judicial Panel.”
