Leicester City will not face a points deduction this season following a successful appeal to an alleged breach of the Premier League’s profit and sustainability rules.
The Foxes were their appeal against the Premier League’s charge and released a statement on Tuesday to say they “welcomed” the verdict, which was reached by an independent panel.
It means that Leicester City will no longer face a points deduction after the Premier League ruled that they had breached PSR for the 2022-2023 season.
PSR states that clubs are only permitted to make a loss of £105m over three years.
A statement from the Premier League said they were “surprised and disappointed” by the outcome, claiming that “its decision will have created a situation where any club exceeding the PSR threshold could avoid accountability in these specific circumstances”.
Premier League fans react as Leicester avoid points deduction
While fans of rival clubs who were docked points last season (Everton and Nottingham Forest) have voiced their anger at the outcome, many football fans believe that Leicester’s successful appeal is a victory for all 20 clubs against the controversial PSR rules.
One X user said: “Good, this PSR nonsense is ending youth academies. And is holding new clubs from challenging the traditional top 6.
“PSR rules favour the ‘Big 6’. Partly brought in to stop another ‘Leicester City’ miracle story happening. But little old Leicester get revenge & pull the Premier League’s pants down. A victory for the rest of football. Now end this bias & end PSR in its current form,” said a second.
Another wrote: “While opposition fans are quick to pile hate on to Leicester, remember you should be praising us for exposing the ridiculous PSR rules which are only there to protect the Big 6. We are on the same side here.”
A fourth added: “Well done Leicester. PSR not fit for purpose.”
There was some negative reaction to the news of Leicester’s successful appeal – especially from sides who had been punished last season.
“I will cheer every goal Leicester concede and celebrate after each game they lose with no shame,” claimed one fan.
Another said: “This is disgusting, Leicester City break the rules but cannot be punished… Instead Everton and Forest get punished and everyone else is totally kneecapped by P&S. Where is the justice for those who abide, and those punished where others aren’t?”
What are the Premier League’s PSR rules?
Profit and Sustainability rules – more commonly known as PSR – state that clubs are allowed to make a loss of up to £105m across three seasons.
One caveat to this is that £90m of this is covered by secure funding from the owners of the clubs in question.
The clubs themselves can only afford to lose a maximum of £15m on outgoings such as transfers, wages, and other expenses in comparison to income from TV payments, season tickets, and selling players.
This runs across the financial year, which begins on 1 July and ends on 30 June. It is also why you will see clubs who are on the brink of breaching PSR rules trying to sell players before the end of June, so they can factor it into their financial year.
For example, Aston Villa were one of the sides who did this when selling Douglas Luiz to Juventus. Due to fears of maybe being in breach of the rules, Villa sanctioned a deal for Luiz to join the Italian side in June, meaning they could add the income from the deal into their 2023-2024 accounts, which won’t be published until 2025.
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