Leicester City appear poised to avoid a points deduction this season after exploiting a loophole in the Premier League’s regulations—a move that could force the league to revise its rules.
The Foxes were charged by the Premier League in March for breaching spending rules over a three-year period ending in June 2023. The potential consequences included a points deduction, a punishment that could have seriously impacted their current campaign.
However, Leicester successfully argued that because they were no longer a Premier League club on the date the charges were brought, the league lacked the authority to impose such a penalty.
This argument, accepted by an independent commission, means that Leicester are likely to escape the punishment that could have befallen them had they remained in the top flight after the 2022-23 season.
Had Leicester avoided relegation last season, they might have faced charges alongside Everton and Nottingham Forest. The ramifications of this loophole could be significant, especially if Leicester manage to avoid relegation this season while other clubs, facing similar financial scrutiny, are not so fortunate.
The club’s case was spearheaded by renowned sports lawyer Nick De Marco, whose successful defence has made him a hero among Leicester fans.
On social media, supporters expressed their gratitude, with one suggesting that De Marco might never have to pay for a drink in the city again.
The Premier League, on the other hand, was less than pleased with the outcome. In a strongly worded statement, the league expressed its frustration with the independent commission’s decision.
“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,” the statement read.
The league further criticised the decision, suggesting it undermines the purpose of the rules and could create a scenario where clubs could evade accountability by relegation.
“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.”
The Premier League also emphasised the importance of enforcing its rules consistently to maintain fairness across the league, indicating that it would consider further action to rectify this loophole.
Leicester’s next set of financial accounts, covering their current season in the Championship, are due early next year. Even if these accounts reveal further breaches, the timeline would likely make it difficult to charge and penalise Leicester with a points deduction before the season ends.
In response to the Premier League’s statement, Leicester issued their own, seeking to clarify the situation.
“To avoid any misunderstandings which may arise in light of the statement which has been issued by the Premier League… Leicester City wishes to emphasise the finding of the Appeal Panel that… the Club did not breach the Premier League PSRs for the assessment period ending 30 June 2023.”
Leicester’s statement also highlighted flaws in the Premier League’s rule drafting and insisted that the club’s challenge was aimed at ensuring consistency and certainty in the application of the rules.