Leicester City win appeal against decison on alleged PSR breaches

Leicester City have won their appeal against an independent commission’s ruling regarding alleged breaches of the Premier League’s Profit and Sustainability Rules (PSR).

In July, the commission appointed by the Premier League determined that the English top-flight could sanction the Foxes for breaches between 2020 and 2023.

Although Leicester’s initial appeal was dismissed, the club launched a second challenge against the decision, which has now been overturned by an independent appeal board.

The East Midlands outfit will subsequently not be facing a points deduction from the Premier League.

The appeal board comprised three senior lawyers, two of which serve as Court of Appeal judges.

Earlier this year, Leicester reported a loss of £89.7m for the 2022/23 accounting period, bringing their cumulative losses to £215.3m for the last three seasons.

The Premier League’s PSR mandate that teams cannot make a loss greater than £105m over three years, however the club made the case that these regulations should not be applicable, after Leicester were relegated to the EFL Championship at the end of the 2022/23 season.

In response to the appeal board’s findings, the Premier League released a statement that said, ‘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.’ 

The club said in response, ‘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^th June 2023.’

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