Leicester City AVOID points deduction after club successfully appealed PSR decision due to a loophole – leaving Premier League ‘surprised and disappointed’

Leicester are set to escape a points deduction this season after exploiting a loophole that may force the Premier League to rewrite their own rules.

In March this year, the Foxes were charged by the League for breaching spending rules for the three-year period ending in June 2023, which could have resulted in them being docked points at some point during the current campaign.

But the club have successfully argued that because they were no longer a top-flight club on the date they were charged, the Premier League did not have the authority to punish them. 

Had Leicester avoided relegation in the 2022-23 campaign, they could have been charged along with Everton and Nottingham Forest last term. It remains to be seen what rival clubs may think of this quirk next May if they are relegated and Leicester survive.

The Premier League were furious with the decision of the independent commission. A statement read: ‘The Premier League is surprised and disappointed by the independent Appeal Board’s decision to uphold an appeal lodged by Leicester City FC regarding the League’s jurisdiction over the club’s alleged breach of its Profitability and Sustainability Rules (PSRs) when the club was a member of the Premier League.

Leicester City have announced they have avoided a Premier League points deduction after the newly-promoted club appealed a Profitability and Sustainability Rules (PSR) decision

The side, who face a battle to survive this season, were staring down the barrel of a sanction

The Foxes slipped to defeat to Villa on Saturday leaving them with one point after three games

‘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.

‘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 were represented by high-profile sports lawyer Nick De Marco, who was flooded with messages on social media by delighted Leicester fans. One speculated that he would never have to buy a beer in the city again.

Leicester next set of accounts, relating to their season in the Championship, are due to be submitted early next year. Even if they were deemed in breach at that stage, it would be extremely difficult for them to be charged and given a points penalty before the end of the season, given the timelines involved.

A Leicester statement read: ‘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 June 2023.

Steve Cooper’s side seemed set to face a fate similar to Everton, who received two separate points deductions for financial overspending

‘In its decision, the Appeal Board (which was made of up a panel of three experienced, senior lawyers, two of whom are former Court of Appeal judges) 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 (in the interests of providing consistency and certainty for all clubs) that the rules are applied based on how they are actually written.’