Leicester City wins appeal against supposed breach of Premier League spending regulations
(MENAFN) English club Leicester City has successfully won an appeal against a potential points deduction related to an alleged breach of Premier League spending regulations, the club confirmed on Tuesday. The appeal was upheld by an independent board, overturning a previous ruling by a commission that found Leicester City had exceeded the Premier League’s £105 million (approximately USD137.8 million) three-season loss threshold. This threshold is part of the Premier League’s profitability and sustainability rules, which are designed to ensure financial stability among top-flight clubs.
The independent appeal board’s decision was based on the finding that Leicester City's accounting period extended until June 30, 2023, which was a month and two days after the club’s relegation from the Premier League. As a result, the Premier League did not have the jurisdiction to adjudicate the matter during that period. This decision effectively nullified the earlier ruling that suggested the club might have breached the financial regulations.
In response to the appeal decision, Leicester City issued a statement to clarify the findings and address any potential confusion arising from the Premier League’s subsequent statement. The club emphasized that, according to the wording of the Premier League rules and established principles of English law, they had not breached the Premier League's profitability and sustainability regulations for the assessment period ending on June 30, 2023. This statement aimed to clear up any misunderstandings regarding the appeal's outcome and the club's adherence to the financial rules.
Initially, the Premier League had referred Leicester City to an independent commission in March, alleging a breach of financial regulations. However, the commission dismissed Leicester's initial challenge to its jurisdiction over the case. The successful appeal has now resolved the issue, allowing Leicester City to avoid a points deduction and the associated impact on their league standing and future prospects.
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