‘It cannot be right’ – EFL issues statement on Leicester City PSR case as loophole slammed

The EFL has said it is reviewing Leicester’s successful appeal which prevented the Premier League from punishing the club from alleged breaches of Profit and Sustainability Rules.

An independent panel found the Premier League did not have the jurisdiction to punish the Foxes as the club had been relegated to the Championship when their accounting period ended on 30 June 2023.

The Premier League said it was “surprised and disappointed” by the decision, while Leicester said they had “simply sought to ensure that the rules are applied based on how they are actually written”.

Now, the EFL has weighed in with a statement of its own after Leicester won their appeal – insisting that it ‘cannot be right’ for any club to avoid sanctions ‘due to movement across the divisions’. “We are currently reviewing the decision in full and will reserve any further substantive comment until any possible appeal process initiated by the Premier League has concluded, and or any action is taken by the EFL,” the EFL said.

“We share the frustrations of the Premier League. It cannot be right that clubs potentially escape the scrutiny of the agreed rules and sanctions due to movement across the divisions.

“Cost control rules have been agreed by the member clubs of the Premier League and EFL, and it is incumbent on the leagues to apply the rules as intended to uphold the integrity of competitions, with clubs required to act in utmost good faith towards one another for the benefit of all clubs and their supporters.”

City were charged by the Premier League for breaching spending rules. They appealed against this charge but an independent commission then ruled the league could take action. Leicester then appealed against that decision – based on the fact they were in the EFL at the time the charge was issued.

Under PSR, clubs cannot lose more than £105million over a three-season period. The Premier League charges related to the three-year period to the end of the 2022/23 season. The Foxes had been found to have breached £24.4m over the PSR limit, which could have led them to a potential points deduction.

Leicester were relegated back to the Championship at the end of the 2022/23 season after a nine-year stay in the Premier League. They bounced straight back to the top flight after winning the second tier last term, and have started this campaign without a win in their opening three matches.

 

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