Five key dates that could help clarify club’s fate in PSR case
CITY DUE TO RELEASE FINANCIAL FIGURES BEFORE END OF THE MONTH
LEICESTER City have been referred by the Premier League to an independent commission for an alleged breach of Profit and Sustainability rules (PRS) and have been placed under a registration embargo by the EFL. So what now?
As with all matters of these kinds, patience will be needed for resolutions.
Here’s a look at the key dates where progress will be made.
March 31
There should be news this week with City due to release their accounts for the 2022/23 season before the month is over.
Not only will the figures for last term give a greater indication of where City stand against the charge by the Premier League, it will give clarity over the battle they face to get their house in order to satisfy PSR rules for the three-year cycle ending with the current 2023/24 campaign.
There may not be full disclosure over PSR though.
When Ipswich published their accounts last week, they included a PSR calculation, showing the expenditure on areas of the club that do not count towards the spending limits, such as investment into youth development, community schemes and women’s football.
However, this is a rarity. Very few clubs publish such breakdowns.
May 4
The final day of the Championship season will be significant.
If the battle for promotion remains as tight as it is now, City may host
Blackburn needing victory to secure a top-two finish.
But also, that date should act as a cut-off point for City to receive any points deductions this season.
The limited time before the end of the campaign means it’s extremely unlikely that City will receive a punishment that affects their promotion push, despite the Premier League’s aim to deal with cases in the season teams are charged.
A points deduction for City this season could be the difference between them finishing in the automatic promotion places and in the play-offs.
Preparations for those play-off semi-finals, which begin on May 12, will begin as soon as the final whistle goes on the final day of the regular campaign. Plus, teams need to know before the game whether they need to play for a win or a draw to secure their aims.
To bring in a points deduction after that final game would jeopardise the competition.
If City are to be punished this season, it won’t happen after May 4.
May 23
This date would be nine weeks after the Premier League charge against City.
That is, so far, the quickest a case has been settled, with Nottingham Forest charged on January 15 and receiving a points deduction on March 18.
The Premier League’s Standard Directions for PSR cases prescribe a timeline for them to be heard. However, those rules don’t apply to City as a Championship club, as they were not introduced until this season.
The Premier League said a timetable would be decided upon by the independent commission.
There is no word yet on what that timetable would be, but it seems unlikely that City’s case will be settled inside nine weeks.
Forest’s case was concluded quickly because they fully co-operated with the commission, and even then, they have since announced they will be appealing anyway.
The Standard Directions, which again City don’t fall under, state that every case should be heard within 12 weeks. That would mean a resolution by June 13. However, that falls outside of the dates set by the Premier League for resolutions.
They want decisions on cases by May 24 at the latest, and appeals to have been heard by June 8.
June ??
No official date has been named for the opening of the summer transfer window, but when it is, it will be a significant one for City.
To avoid a potential breach of PSR rules for the three-year cycle to the end of the current campaign, they could need to sell players before the end of the financial year.
That means that as soon as the transfer window opens, they need to be getting down to business.
Negotiations can and do take place before the official opening of the window, but deals cannot go through until that date arrives.
City need any sales to be wrapped up in June so that they go into this season’s accounts.
June 30
The final day of June is the final day of the accounts.
However many sales City might need to satisfy PSR for the current campaign, they need to be wrapped up by June 30.
From there, it’s a bit of a mystery. City enter a new cycle from July 1, one that does not include the campaign in which they lost £92 million.
That should mean they are less at risk of breaching PSR going forward, meaning there should be more leeway for transfer business.
But if they don’t get promoted, they could still be under an EFL embargo, with no date set for when City can resume registrations of players.