- The Foxes have been under probe over a potential breach of PSR regulations
- A decision has now been reached that could jeopardise a top-flight return
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Relegated Leicester’s bid to win an instant return to the Premier League has suffered an immediate blow after they were charged with breaking financial rules.
The Foxes have been referred to an independent commission for breaching profitability and sustainability regulations for the 2023-24 accounting period – which covers the season they last won promotion.
Leicester had successfully argued that they could not be charged for breaking rules in the 2022-23 and 2023-24 periods, as they were between divisions at the time.
But while that position was upheld for 2022-23, it has now been rejected for 2023-24.
That leaves another legal battle looming with the spectre of a possible points deduction further down the line, which could do clear damage to Leicester’s prospects in 2025-26.
In an update over the matter, the Foxes wrote in a statement on Tuesday: ‘The Club is pleased that it successfully defended the Premier League’s challenge to the Appeal Board decision in relation to the PSR assessment period ending FY23, which was the main focus of these proceedings.
Leicester City have been charged with breaking the Premier League’s financial rules
It comes as a major blows to the Foxes chances of securing an immediate top-flight return
‘The Premier League’s own rules provide a deliberately high threshold for any challenge to the decision of an Appeal Board.
‘In this case, the Appeal Board’s decision was only capable of being overturned if it could be shown to have resulted from a ‘perverse interpretation of the law’ or was a decision ‘which could not reasonably have been reached’.
‘The Appeal Board decision was reached by a highly experienced panel (including two former Court of Appeal judges) and, although the tribunal may have disagreed with the decision, it dismissed the Premier League’s challenge, finding (consistent with the arguments made by the Club all along) that the Appeal Board decision ‘could not sensibly be seen as resulting from a perverse interpretation of the law’.
‘The tribunal also concluded that the Premier League was successful in establishing jurisdiction on one of the two grounds argued by the Premier League with respect to the assessment period ending FY24, and the Premier League has now referred this to an independent Commission.
‘Consistent with its previous commitments, the Club intends to engage cooperatively in this matter now that the Premier League’s jurisdiction has been established for the period ending FY24. However, we will not be able to comment further on these proceedings until they are concluded, due to their confidential nature’.
This development is likely to have a significant effect on Leicester’s plans for the new season.
Leicester’s financial troubles have been linked to their significant spending in recent years
Manager Ruud van Nistelrooy has still not been told whether he will continue in the job, with other candidates believed to have been sounded out. Leicester are known to admire Sheffield Wednesday boss Danny Rohl.
But the uncertainty may make it tougher for Leicester to recruit the players and staff they have targeted for the new campaign.
Mail Sport revealed earlier this month that there may be changes behind the scenes as chairman Aiyawatt Srivaddhanaprabha conducts a review of a disastrous campaign.
It is thought recruitment chief Martyn Glover may take a central role in proceedings. Until now director of football Jon Rudkin, a key ally of Srivaddhanaprabha, has ruled the roost behind the scenes.
