S Poddar
Leicester City has won a High Court battle with the Premier League over alleged breaches of profitability and sustainability rules. The development, coming after this verdict, had indicated that Leicester was not looking at the prospects of a potential points deduction this season-a day of doom that had so far been looming large on the club and its fans.
The independent panel delivered its verdict recently, and quite clearly, there was no jurisdiction for the Premier League case against Leicester. While the panel said some areas of the current profitability and sustainability rules are “far from well drafted”, this is seen to be a key victory for Leicester. This decision has proved somewhat disappointing for the Premier League, who also expressed surprise at, and disappointment with, the decision.
The charge against Leicester by the league was expected to bring a possible points deduction given that rival clubs have been expecting that development. This case came after a tortuous and prolonged appeal process where the Premier League first brought the charge in March when Leicester were still in the Championship. Financial activities by Leicester in question concerned the three-year period ending in the 2022-23 season.
The independent commission, which consisted of three senior lawyers and two former Court of Appeal judges, ruled that the Premier League had abused its processes. The panel said the league’s effort to charge Leicester in the first place was mislaid because the financial accounts of Leicester were for a period after the club was relegated from the Premier League.
It subsequently announced that the Premier League would consider whether to lodge an additional appeal, but any such move is improbable at this juncture. As is documented, the rules state that clubs are allowed to lose up to £105 million across a three-season period without penalty. The Premier League has recognised that the decision may inadvertently allow clubs that breach the threshold on profitability and sustainability to avoid a sanction-which was never the intention of the legislation.
Following the independent Commission’s decision, the Premier League has acknowledged a number of points that were either not properly addressed or ignored in its decision-making process and is considering further action that it can take against Everton.
Leicester have retained optimism that they will not be found guilty of any subsequent offense under the profitability and sustainability regulations for the period up to the end of June 2024. Transfers of the club’s players during the just-ended transfer window, including Kiernan Dewsbury-Hall and Enzo Maresca, both to Chelsea, generated £40m in fees and this, Leicester believe, will help boost their accounts.
In a statement, Leicester City indicated that they were satisfied with the appeal board’s decision, since this would augur well for all clubs. The club said its challenge was part of an effort to ensure rules apply consistently and fairly, as they should.
Awaiting a visit from Crystal Palace, the game plan is to ramp up performances now under the guidance of new manager Steve Cooper. With a paltry one point from the opening three games, Leicester’s fans are hoping for better things as this campaign wears on.
