Leicester WIN appeal against PSR breach after facing points deduction as Premier League left ‘surprised & disappointed’

LEICESTER have won a huge legal battle with the Prem – and avoided a points deduction for Profitability and Sustainability breaches.

In a landmark ruling which left Prem chiefs stunned, an independent appeal board backed Leicester’s argument that the League did not have the right to charge them for losses in excess of the limit of £105m in the three seasons up to 2022-23.

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Leicester have won their appeal against the alleged breach[/caption]

It means the Foxes will now avoid the anticipated six-point penalty they had been facing – although they could be charged later in the season if they are in breach of the limit when the 2023-24 accounts are delivered to Prem chiefs.

Leicester’s claim – which was rejected by the initial independent commission which sat in March – was that the Prem could not sanction them when the club had become a member of the EFL following their relegation that season.

And in a shock ruling, the appeal board accepted that Leicester were not subject to Prem rules because the club’s accounting period ended on 30 June 2023, “after the point the club had ceased to be a member of the league”.

Furious Prem bosses issued a statement in which they said they were “surprised and disappointed” by the ruling.

It added: “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.

“The League remains of the view that the original Commission took the right approach in interpreting the rules in a practical and workable way that gives effect to their intended purpose.

“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.

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“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.”

Despite that bullish response the ruling is a hammer blow to firm legal chiefs and chief executive Richard Masters as it undermines the League rulebook.

Delighted Leicester “welcomed” the Appeal Board’s “comprehensive decision”.

The King Power Stadium club added: “This supports our consistently stated position that any action against the Club should be pursued in accordance with the applicable rules.”

Leicester also refuted the Prem claim, adding “to avoid any misunderstandings which may arise in light of the statement which has been issued by the Premier League, 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 the Club did not breach the Premier League PSRs for the assessment period ending 30 June 2023.

“In its decision, the Appeal Board 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 that the rules are applied based on how they are actually written.”

Despite the escape though Leicester could face a charge early in the new year which would apply this season if they are found to be in beach of the allowable loss limit.

Despite their season in the championship Leicester can only make permitted losses of £83m over the three seasons until the end of last term and can no longer claim Covid-related losses in their calculations.

All Prem clubs must supply their accounts by December 31 with charges following within 14 days if they are found to have breached the regulations.