Leicester City's PSR Win

Another Time, Another Place

To the surprise of many, including rival clubs, Leicester City have won their appeal against a previous decision by an Independent Commission relating to alleged breaches of the Premier League’s Profitability and Sustainability Regulations (PSR).

The Appeal Board concluded that the Premier League did not have the authority to hear the PSR case, which means that Leicester no longer face the threat of a points deduction, at least for the time being.

Jurisdiction

Leicester’s argument was that they could not be charged for a PSR breach for the 2022/23 season, as they were no longer a member of the Premier League when the PSR calculation was carried out, having been relegated to the Championship.

They successfully argued that the alleged breaches only arose after Leicester City ceased to be a member of the Premier League, as they had transferred their share to newly promoted Luton Town in mid-June, i.e. two weeks before the end of their 2022/23 accounting period.

In other words, they were no longer bound by Premier League rules, so the Commission had no jurisdiction to hear the case.

Leicester’s legal team has clearly played a blinder here, effectively winning the appeal on a technicality (or by finding a loophole in the rules).