Leicester City’s successful appeal against a potential points deduction is a crucial development, as it has a significant impact on their current season. However, the club’s troubles aren’t completely over, as another financial assessment is pending. This evaluation will determine if they’ve breached Profit and Sustainability Rules (PSR) and could still lead to penalties this season.
The appeal board sided with Leicester’s claim that the Premier League’s regulations were not applicable when they were initially charged with a PSR violation. By the end of the 2022-23 financial period on June 30, 2023, Leicester was no longer a Premier League club due to their relegation in May 2023. This argument was bolstered by Leicester’s decision to extend their accounting period to June 30, which was permitted under Premier League rules. Although the Premier League has the option to appeal this ruling, it is unlikely to succeed given the qualifications of the appeal board.
As a result of the appeal, Leicester City will not face any penalties related to the 2022-23 season, including the charge for failing to submit their accounts on time. If they had been found guilty, they might have faced a seven-point deduction, though the exact number would have been subject to further review.
Despite this legal victory, Leicester is still dissatisfied, believing that the drawn-out process may have negatively impacted their summer transfer activities. Moreover, the club is not entirely in the clear for the 2023-24 season, as their finances for that period still need to be examined. Leicester must submit their financial reports by December 31, and there is a chance they could face a points deduction if they are found to have exceeded the permissible losses.
This case also has broader implications for the Premier League, which might need to revise its regulations to avoid similar situations in the future. Other clubs, particularly those penalized for PSR breaches or involved in relegation battles, might feel that Leicester benefited from a technicality.
Regarding Leicester’s 2023-24 finances, it remains uncertain whether the EFL or the Premier League will conduct the assessment. Additionally, Leicester’s defense that they were not in the EFL when the financial year ended might not hold up under scrutiny. The club’s financial situation will continue to be closely monitored throughout the season.
