LONDON: Thai-owned Leicester City have won an appeal against a decision that could have led to a points deduction for an alleged breach of Premier League Profitability and Sustainability (PSR) rules.
Leicester, who are back in the top flight of English football after winning the Championship last season, had claimed that an independent commission ruling on the case did not have jurisdiction, a view that was upheld by an independent appeal board.
The decision was made on the grounds that Leicester's accounting period ended on June 30, 2023, when the club was no longer a member of the Premier League following their relegation to the second tier the previous month.
Premier League clubs are not allowed to lose more than 105 million pounds (US$137.5 million) over a three-season period under the PSR rules. Both Everton and Nottingham Forest were given points deductions in the previous season for exceeding the cap.
The appeals board concluded that the point at which Leicester allegedly exceeded the loss threshold could not have come before June 30. Any losses could, in part, result from their trading activities after they ceased to be a Premier League club.
Leicester are owned by Aiyawatt Srivaddhanaprabha, the chief executive of the Thai duty-free group King Power. His father Vichai, who bought the team in 2010, died in a helicopter crash in Leicester in 2018.
“Leicester City welcomes the Appeal Board’s comprehensive decision, which supports our consistently stated position that any action against the Club should be pursued in accordance with the applicable rules,” the Foxes said in a statement on their website.
Leicester were first referred by the Premier League to the independent commission in March, and the commission dismissed the club’s first challenge to its jurisdiction.
The Premier League said it was surprised and disappointed by the decision announced on Tuesday.
“The Appeal Board’s decision effectively means that, despite the club being a member of the League from Seasons 2019/20 to 2022/23, the League cannot take action against the club for exceeding the relevant PSR threshold in respect of the associated accounting periods,” the Premier League said in a statement.
Leicester, which shocked the football world when they won the Premier League in 2016, have drawn one and lost two of their opening three fixtures in the new season.