Leicester prevailed in their appeal against the Premier League’s jurisdiction regarding purported PSR violations

Leicester City has successfully appealed a decision that could have resulted in a points deduction for an alleged violation of the Premier League Profitability and Sustainability (PSR) regulations, the club announced on Tuesday.

After winning the Championship last season, Leicester, who are now back in the top tier, appealed the decision, arguing that an independent commission lacked jurisdiction. This appeal was subsequently upheld by an independent appeal board.

Leicester’s accounting period concluded on June 30, 2023, when the club was relegated to the second tier following its relegation from the Premier League the previous month. Consequently, the decision was made for this reason.

Last season, Everton and Nottingham Forest were both issued points deductions, as Premier League clubs are permitted to incur losses of no more than 105 million pounds ($137.56 million) over a three-season period under the PSR regulations.

The appeals board determined that Leicester’s purported breach of the loss threshold could not have occurred prior to June 30, and that any losses could have been partially attributable to their trading activities subsequent to their discontinuation as a Premier League club.

“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,” the Foxes stated in an official statement.

Leicester was initially referred to the independent commission by the Premier League in March. The commission rejected the club’s initial challenge to its jurisdiction to hear the case.

According to the Premier League, the decision that was announced on Tuesday was both unexpected and disappointing.

“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,” a statement issued by the Premier League stated.

In their own press release, Leicester stated that they wished to prevent any potential misunderstandings that could arise in consideration of the Premier League’s statement in response to the appeal decision.

Leicester City would like to underscore the Appeal Panel’s determination that the club did not violate the Premier League PSRs for the assessment period ending June 30, 2023, given the actual language used in the Premier League regulations.

(1 dollar is equivalent to 0.7633 pounds)