Leicester have won an appeal against a decision that could have led to a points deduction for an alleged breach of Premier League profit and sustainability rules (PSR).
An independent panel found the Premier League did not have the jurisdiction to punish the Foxes as the club had been relegated to the EFL Championship when their accounting period ended on 30 June 2023.
The Premier League said it was “surprised and disappointed” by the panel’s decision.
Leicester said they had “simply sought to ensure that the rules are applied based on how they are actually written”.
The Foxes were charged by the Premier League with breaching spending rules. They appealed against this charge but an independent commission then ruled the league could take action.
Leicester then appealed against that decision – based on the fact they were in the English Football League (EFL) at the time the charge was issued – and the outcome was announced on Tuesday.
Under PSR rules, clubs cannot lose more than £105m over a three-season period.
The Premier League charges related to the three-year period to the end of the 2022-23 season.
But the team were relegated to the Championship at the end of that season and the club only filed accounts after ceasing to be a member of the Premier League.
Nottingham Forest and Everton both received points deductions last season after being found to have breached PSR rules.
Board says PSR rules ‘far from well drafted’
In its ruling, the independent panel said the PSR rules “are, in relevant parts, far from well drafted”.
Reacting to the decision, the Premier League added: “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.”
The panel upheld Leicester’s appeal and said the Foxes were “no longer a club” governed by the profit and sustainability rules when the calculation was carried out.
“It is not obvious why such a club should be subject to the disciplinary jurisdiction of the Premier League,” their decision read.
Leicester were “not in breach, and should not be treated to be in breach, of the rules”, the panel added.
