Leicester City recently won an appeal against a decision that could have resulted in a points deduction for an alleged breach of Premier League Profitability and Sustainability (PSR) rules. The club, which returned to the Premier League after winning the Championship last season, appealed on the grounds that the independent commission ruling on the case did not have jurisdiction. This appeal was ultimately upheld by an independent appeal board.
The basis of the appeal was that Leicester’s accounting period ended on June 30, 2023, at which point the club was no longer a member of the Premier League due to relegation to the second tier the previous month. According to PSR rules, Premier League clubs are only allowed to incur losses up to a certain threshold over a three-season period. In the past, both Everton and Nottingham Forest had received points deductions for exceeding this threshold.
Leicester City expressed satisfaction with the Appeal Board’s decision, emphasizing that any action against the club should be taken in accordance with the applicable rules. The Premier League, on the other hand, expressed surprise and disappointment at the outcome. The League highlighted that despite Leicester’s membership from Seasons 2019/20 to 2022/23, they could not take action against the club for exceeding the PSR threshold for the associated accounting periods.
In response to the Premier League’s statement, Leicester City released their own press release to clarify any potential misunderstandings. They emphasized that according to the Appeal Panel’s findings, the club did not breach the Premier League PSRs for the assessment period ending June 30, 2023.
Overall, the recent appeal decision in favor of Leicester City has brought clarity to the situation and reaffirmed the importance of following the established rules and procedures in football governance. This case serves as a reminder of the complexities involved in financial regulations within professional sports and the significance of transparent decision-making processes.