Leicester City are poised to avoid a points deduction this season after winning their protracted legal dispute with the Premier League pertaining to an alleged breach of profitability and sustainability rules (PSR).
After Leicester’s appeal, an independent panel found there was no jurisdiction for the case to be heard. While the panel conceded PSR “are, in relevant parts, far from well drafted”, the decision is a major boost for Leicester and a blow for the league, which said it was “surprised and disappointed” at the result.
Rival clubs had expected Leicester to be charged, perhaps early next year owing to the complex nature of the case and the back-and-forth between appeals. Everton and Nottingham Forest were both given points deductions last season.
The independent commission – comprising three senior lawyers including two former court of appeal judges – effectively ruled the league was overreaching by charging Leicester, who were in the Championship at the time the charge was issued in March. The charge related to the three-year period ending 2022-23. The panel found Leicester’s accounts ended after the club were relegated.
The league has confirmed it will consider whether to make a subsequent appeal, though that move is thought to be unlikely. Under PSR clubs are permitted to lose a maximum of £105m across a three-season period.
The league appeared to acknowledge flaws in its rules, saying: “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.”
Leicester are confident of avoiding a further PSR charge for the three-year period ending June 2024 owing to the £40m in fees they generated from the departures of Kiernan Dewsbury-Hall and Enzo Maresca, both to Chelsea.
In a statement on Tuesday Leicester said they “welcomed” the appeal board’s decision and insisted the verdict will benefit all clubs, adding: “In challenging the Premier League’s attempts to charge Leicester City, the club has simply sought to ensure (in the interests of providing consistency and certainty for all clubs) that the rules are applied based on how they are actually written.”
Leicester, who visit Crystal Palace next weekend, have one point from their opening three matches under Steve Cooper, who was appointed in June.
