Leicester City have seen their chances of surviving in the Premier League increased dramatically as they have won their appeal against an alleged breach of Profitability and Sustainability Rules (PSR).
Steve Cooper will be a relieved man as he now has a clearer idea of where his Leicester City side stand in terms of any potential points they may have needed to make up.
The Premier League initially charged Leicester with a breach of their spending rules in the three-year period leading up the the 2022/23 season in which the Foxes were relegated from the top flight.
Leicester – in the Championship at the time which is governed by the EFL – appealed the decision and have been awaiting the verdict of their appeal.
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The case then went to the independent appeal board who sided with Leicester to grant the appeal.
How Leicester City won appeal against Premier League PSR breach
Premier League PSR stipulates that each club in the division is only permitted to make losses of up to £105 million over three seasons.
The charge that was handed to Leicester in March alleged that the club had made losses of £129.4 million in the three years leading up to the 2022/23 season; £24.4 million more than the permitted figure.
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Leicester’s legal team focused their appeal around the weak drafting of the Premier League rules, as well as the fact that the Foxes had ceased to be a Premier League club before filing their accounts due to their relegation in May 2023.
Leicester had transferred their Premier League shares to newly-promoted Luton Town prior to the 30th June PSR deadline and therefore were officially no longer a top flight club so the Premier League did not have the jurisdiction to punish them.
Kieran Maguire reveals how many points Leicester City could have been deducted
This loophole has already led to the Premier league exploring the possibility of rewording their rules as, had Leicester not been relegated, they would likely have joined Everton and Nottingham Forest in receiving points deductions last season.
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Football finance expert Kieran Maguire has now given an idea of what that punishment may have looked like, using Everton and Forest as barometers.
Maguire posted on X: “On the basis of the Forest/Everton points deduction of 3 points for breaking the rules and 1 more point per £6.5m above the limit IF the PL calculations were correct then with a £24.4m breach Leicester would have had a 7 point deduction (subject to aggravating & mitigating factors).”
Cooper already faces a difficult task in keeping Leicester in the Premier League this season and a seven point deduction would have effectively relegated the club.
Therefore, everyone associated with Leicester will be breathing a big sigh of relief at the appeal being won.