Leicester got away without punishment for breaching financial rules, having been relegated to the Championship at the end of the financial year.
Premier League upstarts Leicester have had their appeal against a decision that could have resulted in a points penalty go through, reported the BBC.
Leicester were accused of breaking the Premier League’s Profit and Sustainability Rules (PSR).
An independent panel found that the Premier League had no jurisdiction to punish the club because it had been relegated to the Championship when the club’s financial year ended on June 30, 2023. The Premier League is “surprised and disappointed” by the panel’s decision.
Leicester, on the other hand, commented that the club had “simply sought to ensure that the rules are applied based on how they are actually written”.
Under PSR rules, clubs cannot lose more than £105m over three seasons. The Premier League’s charges related to a three-year period until the end of the 2022-23 season.
Last season, Nottingham Forest and Everton received points deductions after they were found to have breached the PSR rules.
The panel that investigated Leicester’s complaint found that the PSR rules are far from well drafted.
Leicester therefore avoided punishment as they had been relegated from the Premier League and were no longer subject to PSR rules when the financial year ended.
The club survived through a loophole. The Premier League questions the decision because, according to it, the panel did not “take into account the purpose of the rules” in its judgment.
The Premier League can hardly challenge the verdict, but it is likely that the PSR rules will be clarified with the case.
Manchester City, which dominated the Premier League in recent years, is accused of no less than 115 violations related to the Premier League’s financial rules.
Sky Sports reported in August that the club’s hearing will be held in September, and verdicts can be expected in the spring of 2025.
The investigation against City has been ongoing for years. The Premier League announced the accusations against City already in February 2023.