Leicester City PSR situation explained: Why the club is still at risk of Premier League charges and what punishment could be

All Premier League clubs have avoided any charges for breaching profit and sustainability rules, but Leicester City remain at risk.

All top-flight teams breathed a sigh of relief on Tuesday morning when it was confirmed that no club had broken any rules.

Leicester, which avoided a point deduction At the beginning of this season, after an appeal, they were the most relieved.

The Foxes were reported to be the club most likely to receive a punishment due to their previous close status.

But they have avoided any deductions – at least for now…

Why is Leicester still at risk of a PSR breach?

leicester They have been cleared for the 2023/24 PSR period, but remain in dispute over the previous season.

The club was accused of infringement earlier this year but won its appeal to avoid a ban in respect of the 2022/23 campaign.

In fact, they benefited from the fact that they were relegated at the end of that season, using it to find a loophole.

the first league they were not happy with the decision made by an independent commission and all parties still remaining locked in 'confidential arbitration proceedings' over the 2022/23 accounts.

The league issued a Leicester-specific statement on Tuesday to address the current situation.

It says: “Issues relating to the Premier League's jurisdiction over Leicester City Football Club in relation to compliance with the PSR are currently the subject of confidential arbitration proceedings.

“Consequently, neither the league nor the club will make any further comment at this stage on any aspect of the club's compliance with any of the PSR or related rules.

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“Except to say that the league has not made any complaint against Leicester for any breach of the PSR for the period ending the 2023-24 season.”

So even though Leicester were confirmed to have had no breaches in the 2023/24 period, the previous year remains up in the air.

And if it is finally discovered that they have failed to comply within that time, a point deduction punishment will be applied.

Football finance expert Stefan Borson has given talkSPORT an insight into what could happen if the club were sanctioned.

Borson said of White and Jordan: “There is still an outstanding case that if the Premier League wins then Leicester will breach the 22/23 deal for £20m.

“They will have been found not to be cooperative, they will have been found not to have given early admission and therefore we can estimate that probably five to six points will be deducted.”

Leicester will remain confident they have not breached PSR rules, with leading sports lawyer Nick De Marco winning his latest case for them.

The legal loophole that the club found was to take advantage of the fact that they were in the English football league (EFL) at the time its 22/23 charge was issued, after moving the end of its financial year to June 30.

That meant that at the end of their financial year, Leicester were no longer a Premier League club and were officially an EFL team, so they could not be judged by top-flight rules.

For Premier League clubs, the PSR states that teams can accumulate losses totaling no more than £105 million over a three-year period.

However, in the Championship, total losses cannot exceed a smaller number than £83 million.

The Commission decided that it was impossible to know exactly when they exceeded the losses allowed by becoming an EFL team before the end of the financial period ending June 2023.

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Leicester will continue to plead their case, but things between the club and the Premier League will drag on.

And talkSPORT's Simon Jordan believes the Foxes should be punished after evading punishment several times.

Speaking live for White and Jordan, the first Crystal Palace The owner said he believes Leicester should be sanctioned.

“Leicester will be delighted,” he said. “They avoided consequences when they entered the Football League because it was under their control.

“They evaded the obligation to provide the football league with current forecasts.

“They have avoided the Premier League and now the Premier League again.”

Jordan continued: “I think the governance in the Premier League is flawed, but the governance that exists at the moment is being circumnavigated by legal constructs.

“I'm not entirely sure I'm comfortable with this. I think Leicester should be sanctioned.

“Most conventional wisdom believed that this time it was going to stick. Most people felt that the Premier League was holding its breath so as not to look foolish, as was the Football League.

Then I would say: “They should be sanctioned, they got away with it and I think they should be relegated.”