Leicester avoid points deduction after winning legal battle with Premier League

Last season’s Championship winners argued that charges could not be applied as they were not in Premier League when accounting period ended

Leicester City are set to avoid a points deduction this season after winning their legal row with the Premier League, in a major blow for the governing body.
Last season’s Championship winners will not be punished for an alleged breach of the league’s profitability and sustainability rules in the 2022-23 season, successfully arguing the charge could not be applied as they had already been relegated when the accounts were completed in June 2023.
Leicester were initially charged in March, while they were still in the Championship, and have effectively won their case after an independent commission agreed with the club’s defence that the rules did not permit it.
After Leicester’s appeal, the commission ruled that there was no jurisdiction for the case to be heard and now Leicester will not be facing any sanctions.
The Premier League said it was “surprised and disappointed” by the panel’s decision and has confirmed it will now consider whether to make a subsequent appeal of its own, but insiders fear the risk of it failing could be too great considering the high-bar threshold. 
The English Football League is expected to review the decision after placing Leicester under a transfer embargo last season amid concerns over the club’s 2023-24 financial calculations.
Everton and Nottingham Forest were both hit with points deductions last season and it was believed that Leicester would also face punishment after the charge for breaching PSR
However, Leicester were always confident of building a strong case, with sports lawyer Nick De Marco leading their defence.
It was initially believed that the appeal would fail, with the prospect of the case dragging into next year, but the commission’s verdict was released on Tuesday evening.
Leicester are also expected to avoid a further charge for the 2023-24 season, after agreeing the £30 million sale of Kiernan Dewsbury-Hall to Chelsea, and the £10 million in compensation from the same club for manager Enzo Maresca, before June 30 and the end of the financial year.
A Leicester statement read:  “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.
“To avoid any misunderstandings which may arise in light of the statement which has been issued by the Premier League in response to the appeal decision, Leicester City wishes to emphasise the finding of the Appeal Panel that, when considering the wording which is actually used in the Premier League rules (in accordance with established principles of English law) the club did not breach the Premier League PSRs for the assessment period ending 30 June 2023.
“In its decision, the Appeal Board (which was made of up a panel of three experienced, senior lawyers, two of whom are former Court of Appeal judges) identifies flaws in the drafting of the Premier League’s rules. In challenging the Premier League’s attempts to charge Leicester City, the Club has simply sought to ensure (in the interests of providing consistency and certainty for all clubs) that the rules are applied based on how they are actually written.”
Leicester have drawn once and lost two league games since their return to the Premier League.