Premier League makes decision on whether to fight Leicester PSR verdict
The Premier League is unlikely to appeal against last week’s ruling from an independent commission that it did not have the jurisdiction to charge Leicester with PSR breaches last season, due to the high bar of overturning verdicts reached at an appeal hearing.
Leicester succeeded in appealing the charges levelled by a previous independent commission on the grounds that they ceased to be a Premier League on 13 June last year, three weeks before their accounts for the 2022-23 season were submitted.
Having lost at appeal, the Premier League’s only further possible recourse is to take the matter to arbitration.
Rather than a forum for regurgitating the arguments, however, the Premier League rulebook states that arbitration can only be used if lawyers for either party can demonstrate that the appeal panel have not followed proper processes or have acted in bad faith.
The Premier League is unlikely to attempt this despite feeling deeply aggrieved at the outcome.
City PM reported last week that league chiefs are set to review the wording of their rulebook to ensure that no other clubs can avoid a potential points deduction for breaching profitability and sustainability rules (PSRs) by using the same loophole.
Leading sports lawyer Simon Leaf, a partner at Mishcon de Reya in London called the appeal verdict “a significant and indeed embarrassing blow to the Premier League and its Rule Book”.
He added: “Leicester and the club’s legal team have exploited a significant lacuna in the PSRs, which effectively confirms that relegated clubs that have a financial year that ends in June have a free pass when it comes to complying with the PSRs.
“For three extremely senior lawyers to all agree that the PSRs ‘would seem to have been drafted without taking [some of the other Premier League Rules] into account’ demonstrates that urgent action will need to be taken to plug this gap.”
What Premier League said about Leicester appeal
The Premier League said it was “very disappointed” after publication of the the appeal verdict, which it said did not take into account the spirit of the rules given that Leicester’s overspending was not in dispute.
“If the Appeal Board is correct, its decision will have created a situation where any club exceeding the PSR threshold could avoid accountability in these specific circumstances. This is clearly not the intention of the rules,” it added.
“It is of critical importance that the Premier League is able to enforce its rules consistently to maintain the principle of fairness. The League will now consider what further action it can take to ensure this is the case.”