Leicester’s bitter row with the Premier League is set to spill over into the new season after a challenge over breaching financial controls was dismissed.
Championship title winners Leicester were charged with breaking Profitability and Sustainability Rules [PSR] in March and are facing the prospect of a points deduction.
It has emerged that Leicester argued that the Premier League had no jurisdiction to punish the club as the alleged breach occurred in the 2022/23 season, when they were last competing in the top division.
Leicester have insisted that any sanctions should have been applied while they were a Premier League club.
An independent commission has dismissed Leicester’s challenge, with the club subsequently lodging an appeal and admitting they were “disappointed” with the verdict.
The feud now threatens to drag on into the new season, with Leicester still facing the prospect of becoming the third top-flight club to suffer a points deduction.
Everton have been hit with two separate points deductions, while Nottingham Forest were docked four points in March.
With sports lawyer Nick De Marco KC leading Leicester’s defence, it could be another few months until the row is resolved.
The Premier League said: “An independent Commission has dismissed a challenge by Leicester City FC that it has no jurisdiction to consider an alleged breach of Profitability and Sustainability Rules (PSRs).
“In March, the Premier League referred the club to the independent Commission for the alleged breach. Leicester City subsequently challenged the Commission’s authority to hear the case.
“The alleged breach relates to the PSRs for Season 2022/23, when the club was a member of the Premier League.”
Current rules stipulate that clubs cannot breach the permitted losses of £105 million over a three-year reporting period.
Leicester reported record losses of £92.5m in the 2021/22 season, with £89.7m announced in the accounts for the following campaign.
Last summer, new rules were introduced at the Premier League’s annual meeting where it was decided that sanctions had to be concluded within the same season of the relevant accounts being submitted.
In a statement, Leicester said: “LCFC notes the publication today of the decision of the Premier League Commission.
“The club is disappointed with the decision, which does not appear to reflect the wording of the Premier League’s Rules, and has lodged an appeal.”
Source Agencies
