Leicester avoid points deduction: Premier League ‘surprised and disappointed’ by PSR outcome

The Premier League says it is “surprised and very disappointed” after Leicester City won their appeal against a decision that an independent commission had jurisdiction to consider an alleged breach of profit and sustainability rules.

An appeal board found that Leicester’s accounting period – after it was claimed the club exceeded the permitted £105million threshold over three seasons – ended on June 30, 2023, a month and two days after the Foxes were relegated from the top flight.

The Premier League said the appeal board’s decision “effectively means that, despite the club being a member of the (Premier) 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”.

It added that the verdict “will have created a situation where any club exceeding the PSR threshold could avoid accountability in these specific circumstances”.

Leicester, who could have faced a points deduction had they been found to have breached financial rules, welcomed the decision, adding that the verdict “supports our consistently stated position that any action against the club should be pursued in accordance with the applicable rules” and “how they are actually written”.

After a campaign in the Championship, Leicester returned to the Premier League this season. They have drawn one and lost two of their opening three fixtures.

Both Nottingham Forest and Everton were given points deductions last season for breaching PSR rules.

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A statement from the Premier League on Tuesday read: “The Premier League is surprised and disappointed by the independent appeal board’s decision to uphold an appeal lodged by Leicester City regarding the league’s jurisdiction over the club’s alleged breach of its profitability and sustainability rules 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.

“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.”

In response, the Foxes said in a statement: “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.”

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