The EFL is scrutinising Leicester City’s successful appeal that blocked the Premier League from imposing sanctions for alleged breaches of Profit and Sustainability Rules.
An independent panel ruled that the Premier League lacked the authority to penalise Leicester, as the club was relegated to the Championship when their accounting period ended on 30 June 2023.
The Premier League expressed its frustration, stating it was “surprised and disappointed” by the panel’s decision. Leicester, on the other hand, maintained that they had “simply sought to ensure that the rules are applied based on how they are actually written.”
Following Leicester’s appeal victory, the EFL has now issued a statement, voicing its concerns over the potential implications of the ruling.
The League emphasised that it “cannot be right” for clubs to evade sanctions simply due to their movement between divisions. The EFL noted:
“We are currently reviewing the decision in full and will reserve any further substantive comment until any possible appeal process initiated by the Premier League has concluded, and or any action is taken by the EFL.”
The EFL further stated:
“We share the frustrations of the Premier League. It cannot be right that clubs potentially escape the scrutiny of the agreed rules and sanctions due to movement across the divisions.”
The League highlighted the importance of cost control regulations, which were agreed upon by both Premier League and EFL member clubs.
The EFL insisted that it is crucial for these rules to be enforced as intended to maintain the integrity of the competitions, adding that clubs must act in “utmost good faith towards one another for the benefit of all clubs and their supporters.”
Leicester City had been charged by the Premier League for allegedly breaching spending rules, specifically the Profit and Sustainability Rules (PSR).
These rules stipulate that clubs cannot lose more than £105 million over a three-year period. The charges against Leicester were related to the three-year period ending with the 2022/23 season, during which the club was found to have exceeded the PSR limit by £24.4 million. This breach could have resulted in a points deduction.
Leicester’s appeal against these charges was initially dismissed by an independent commission, which allowed the Premier League to proceed with sanctions.
However, Leicester then appealed on the grounds that the club was in the EFL at the time the charge was issued, and the panel ultimately ruled in their favour.
The situation is particularly complex as Leicester were relegated to the Championship at the end of the 2022/23 season after a nine-year stint in the Premier League.
Despite this setback, the Foxes bounced back to the top flight by winning the Championship last season. However, their return to the Premier League has been less than smooth, with the club failing to secure a win in their opening three matches of the current campaign.