“‘It Cannot Be Right’ – EFL Issues Statement on Leicester City PSR Case and Criticizes Loophole”

The EFL is currently reviewing Leicester City’s successful appeal, which prevented the Premier League from sanctioning the club for alleged breaches of Profit and Sustainability Rules (PSR).

An independent panel determined that the Premier League lacked the jurisdiction to punish Leicester because the club had been relegated to the Championship when their accounting period concluded on June 30, 2023.

The Premier League expressed that it was “surprised and disappointed” by the decision.

In contrast, Leicester City stated that they were merely seeking to ensure that the rules were enforced as they were written.

Following Leicester’s appeal victory, the EFL released a statement expressing its concerns, emphasizing that it “cannot be right” for any club to evade sanctions simply because of their movement between divisions.

The EFL noted, “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 also echoed the Premier League’s frustrations, stressing that clubs should not escape scrutiny or sanctions due to changes in their division status.

“Cost control rules have been agreed upon by the member clubs of the Premier League and EFL,” the EFL stated.

“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.”

Leicester City was originally charged by the Premier League for breaching spending rules under PSR, which limits clubs to a maximum loss of £105 million over a three-year period.

The charges related to the period ending with the 2022/23 season, during which Leicester was found to have exceeded the PSR limit by £24.4 million.

This breach could have led to a potential points deduction.

However, Leicester’s appeal was based on the fact that they were in the EFL at the time the charge was issued.

The club had been relegated back to the Championship at the end of the 2022/23 season after a nine-year stint in the Premier League.

Despite this setback, Leicester quickly secured promotion back to the top flight by winning the Championship but started the current season without a win in their first three matches.