Leicester are unlikely to face a Premier League points deduction after they won appeal over an alleged breach of PSR rules; the Foxes were adamant they had not breached the rules and the Premier League could not punish them due to their relegation to the EFL
Friday 6 September 2024 11:37, UK
Leicester have won their appeal over an alleged breach of Profitability and Sustainability Rules (PSR) and are unlikely to face a points deduction this season - but what happens now?
The original Premier League case alleged that Leicester had made a loss for three seasons leading up to the 2022/23 season of £129.4m - £24.4m more than the permitted £105m losses over three seasons.
Leicester were adamant the Premier League did not have jurisdiction to punish them in this way, because they had been relegated to the EFL when their accounting period ended, and so they were no longer bound by the Premier League rules. The Foxes were also adamant they had not breached PSR in the first place.
Sky Sports News senior reporter Rob Dorsett goes through why the appeal board came to the decision and what happens now...
There is a great deal for surprise that Leicester have got away with this one in truth, but the club themselves are adamant they did nothing wrong and they stuck absolutely religiously to the letter of the Premier League rules.
That was why they took this legal case all the way to its natural conclusion, this was the final appeal stage which went in their favour on Tuesday.
The crucial factor was Leicester changed their accounting period - which all clubs are allowed to do - until a point that was beyond the end of the Premier League season in 2023.
As a result, they were already relegated by the point they were due to publish their accounts. And they had already given their Premier League share to newly-promoted Luton Town, so they were no longer members of the Premier League.
As a result, Leicester believed they did not have to publish their accounts to the Premier League, which they felt no longer had jurisdiction over the club.
The Premier League felt clearly that Leicester were about to default on their Profit and Sustainability Rules to the tune of £24.4m and wanted to prosecute them for that. That's what the Premier League argued.
But the appeal board judged the Premier League did not have jurisdiction over this area. They also said some of the Premier League ruling is confusing. So whether that leads to changes in the PSR rules in this regard, in this specific area, remains to be seen. But the Premier League is very unhappy about it.
The Premier League feels Leicester have exploited a loophole and is far from happy about it. It does not feel the appeal board's decision is within the spirit of the PSR rules.
However, the Premier League is unlikely to appeal this decision because there is a very high legal bar for it to do so, and this case is unlikely to reach that high bar.
Leicester feel hard done by too because they felt it damaged them in the transfer market.
A number of players did not want to move to the King Power Stadium because of the fear of a six- or a nine-point deduction this season, as a result of this Premier League dispute.
So while Leicester are happy and it all but ends the threat of them potentially getting a points deduction this season, the Premier League is far from happy about it and will look again at its rules.
