Leicester win appeal against decision over PSR charge

Leicester have won an appeal against a decision that could have led to a points deduction for an alleged breach of Premier League Profit and Sustainability (PSR) rules.

An independent panel found the Premier League did not have the jurisdiction to punish the club.

The Premier League said it was “surprised and disappointed” by the panel’s decision.

Leicester said they had “simply sought to ensure that the rules are applied based on how they are actually written”.

The Foxes were charged by the Premier League for breaching spending rules. They appealed against this charge but an independent commission then ruled the top flight 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 – and the outcome was announced on Tuesday.

Under PSR rules, clubs cannot lose more than £105m over a three-season period.

The Premier League charges related to the three-year period to the end of the 2022-23 season.

But the club was relegated to the Championship at the end of that season and only filed its accounts once it ceased being a member of the Premier League.

Nottingham Forest and Everton both received points deductions last season after being found to have breached PSR rules.

In its ruling, the independent panel said the PSR rules “are, in relevant parts, far from well drafted”.

Reacting to the decision, the Premier League added: “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.”

The panel upheld Leicester’s appeal and said the Foxes were “no longer a club” governed by the PSR rules when the calculation was carried out.

“It is not obvious why such a club should be subject to the disciplinary jurisdiction of the Premier League,” their decision read.

Leicester were “not in breach, and should not be treated to be in breach, of the rules”, the panel added.

Nick Mashiter, BBC Sport football news reporter

It is not just relief, there is a feeling of vindication at the King Power Stadium after the ruling.

Leicester stood their ground and successfully argued the Premier League acted outside of its own jurisdiction to charge the Foxes with a breach of Profit and Sustainability Rules (PSR).

While they may be accused of exploiting a loophole, the club want the rules to be enforced as written, rather than being open to interpretation.

Having extended their accounting period to 13 months – filing on 30 June 2023 – to bring Leicester’s accounting in line with the rest of the business, the Foxes were not a Premier League member, having handed in their shares after relegation, and therefore could not be bound by the top flight’s rules.

It is ultimately what has saved them from a penalty but it is understood Leicester feel it underlines the ineffectiveness of the rules, given they are not the only club to file on that date, meaning the league would potentially struggle to enforce them on others too.

The Premier League has questioned the ruling and suggested those who may breach PSR could avoid punishment in these circumstances.

The league says “this is clearly not the intention of the rules” and the verdict “fails to take into account the purpose of the rules”.

The league will now consider what further action it can take to ensure it is able to enforce its rules consistently and “maintain the principle of fairness”.

An appeal is unlikely given the high bar of what it would have to prove, but some rules could be rewritten to avoid a repeat scenario.

A points deduction had been looming at Leicester, but the lifting of that spectre will be a weight off the club and manager Steve Cooper after a start of one point from their opening three games.

Now they have won a huge battle off the pitch, the focus is solely about the fight on it.