Leicester won the Championship in 2023-24 to bounce straight back up to the Premier League

An independent panel found the Premier League did not have the jurisdiction to punish the club.

The Premier League said it was “surprised and disappointed” by the panel’s decision.

Leicester said they had “simply sought to ensure that the rules are applied based on how they are actually written”.

The Foxes were charged by the Premier League for breaching spending rules. They appealed against this charge but an independent commission then ruled the top flight could take action.

Leicester then appealed against that decision – based on the fact they were in the English Football League (EFL) at the time the charge was issued – and the outcome was announced on Tuesday.

Under PSR rules, clubs cannot lose more than £105m over a three-season period.

The Premier League charges related to the three-year period to the end of the 2022-23 season.

But the club was relegated to the Championship at the end of that season and only filed its accounts once it ceased being a member of the Premier League.

Nottingham Forest and Everton both received points deductions last season after being found to have breached PSR rules.

Board says PSR rules ‘far from well drafted’
In its ruling, the independent panel said the PSR rules “are, in relevant parts, far from well drafted”.

Reacting to the decision, the Premier League added: “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.”

The panel upheld Leicester’s appeal and said the Foxes were “no longer a club” governed by the PSR rules when the calculation was carried out.

“It is not obvious why such a club should be subject to the disciplinary jurisdiction of the Premier League,” their decision read.

Leicester were “not in breach, and should not be treated to be in breach, of the rules”, the panel added.