Leicester City recently won a key appeal regarding an alleged breach of the Premier League’s Profitability and Sustainability Rules (PSR). The Premier League had accused Leicester of exceeding the maximum permitted loss of £105 million by an additional £24.4 million across three seasons, up to the 2022/23 season. This breach could have led to significant penalties, including a potential points deduction.
However, Leicester’s legal team successfully argued that the club, having been relegated to the Championship by the end of the accounting period in June 2023, was no longer under the jurisdiction of Premier League rules. The independent appeal board upheld this argument, emphasizing that Leicester could not definitively be proven to have breached the PSR during the time it was still a Premier League member. The board also noted that Leicester had additional time to make player sales and adjust their finances following relegation.
This decision is a significant victory for Leicester, as it essentially eliminates the possibility of further sanctions for the alleged financial irregularities. The Premier League expressed disappointment with the ruling but is unlikely to appeal, as it would face significant legal challenges in doing so.
Leicester City’s appeal hinged on technicalities surrounding their relegation and financial reporting periods, and the appeal board’s decision has sparked discussions about potential redrafting of the Premier League’s financial rules. This outcome provides Leicester with a much-needed boost as they focus on rebuilding following their relegation.
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