Leicester avoids PSR penalty thanks to relegation loophole

Leicester City has successfully won its appeal after previously being charged with a penalty for breaching profit and sustainability rules (PSR). Premier League officials originally charged the Foxes for exceeding the three-year loss limit of about $137 million. Leicester recorded combined losses of nearly $170 million ending in the financial year of 2022/23.

In the spring, the Premier League presented its case against Leicester to an independent commission. This commission agreed with the English top-flight officials that the Foxes broke the financial rules. The ruling seemingly meant the newly promoted side would face a substantial points penalty back in the top division.

Leicester, however, appealed the commission’s decision. That led to the case going to an independent appeal board. This board has surprisingly sided with the Foxes. As a result, Leicester will not face a points penalty during the current international break.

The timing of PSR penalty ultimately saved Leicester

Leicester’s triumph comes down to the timing of the financial year compared to its relegation from the Premier League. Financial periods for every top-flight team end on June 30th of each year. Nevertheless, Leicester officially suffered relegation to the second-tiered Championship more than a month before this date in 2023.

Because the Foxes were not technically a Premier League club in June of 2023, they argued that the division did not have jurisdiction in the case. Financial decisions by the club during this month were not as a top-flight team. This comes even though they were found guilty of breaching financial laws for years while in the Premier League.

The independent appeal board ultimately agreed with Leicester. Premier League officials, on the other hand, claimed that they were “surprised and disappointed” by the ruling. “The Premier League is very disappointed with the appeal board’s decision, and the limited reasons provided for it,” read a…

Source link : https://worldsoccertalk.com/news/leicester-avoids-psr-penalty-thanks-to-relegation-loophole/

Author : Chris Moore

Publish date : 2024-09-04 15:08:21

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