Leicester rage against ‘unlawful’ PSR charge
Promotion hopefuls facing points deduction next season Club likely to be forced to sell top players whatever happens
Leicester City have angrily hit back at the Premier League after becoming the fourth club charged with breaching profitability and sustainability rules.
The 2016 title-winners said they were “extremely disappointed” with the decision to refer them to an independent commission, which raises the prospect of a hefty points deduction next season.
In a statement, the Championship side insisted they would continue to defend themselves “from any unlawful acts” by the authorities. They added that the Premier League did not have the power to impose sanctions this season.
Leicester are believed to be deeply unhappy with the timing of the statement and determined to ensure it does not destabilise their promotion push.
The charges were announced at 6pm yesterday, and the Premier League also claimed the club failed to submit their audited financial accounts. The charge relates to the monitoring period up to and including the 2022-23 season, which ended in Leicester’s relegation.
Leicester, currently second in the Championship, are expected to publish their official accounts for 2022-23 next week, with further losses expected to take them over the permitted £105million over a three-year rolling period.
Last year, they announced record losses of £92.5million for 2021-22.
Regardless of the possible punishment in the event of promotion, Leicester will come under pressure to raise funds by selling players before the end of the financial year, June 30. Kiernan Dewsbury-hall, Mads Hermansen, James Justin and Harry Winks are likely to emerge as targets for rivals.
The club’s statement read: “Leicester City is surprised at the
actions the Premier League has taken today. The club is extremely disappointed that the Premier League has chosen to charge LCFC now, despite the club’s efforts to engage constructively with the Premier League in relation to the matters that are the subject of this charge, even though LCFC is not currently a Premier League club.
“LCFC remains willing and eager to engage constructively with the Premier League and the EFL to seek the proper resolution of any potential charges, by the right bodies, and at the right time. The club continues to take careful advice about its position and, if necessary, will continue to defend itself from any unlawful acts by the football authorities, should they seek to exercise jurisdiction where they cannot do so, as occurred earlier this year.”
The delay in the sanction is a consequence of Leicester’s relegation last May taking place before new rules were introduced at the Premier League’s annual meeting following the end of last season.
At that meeting, the 20 clubs, including the three promoted, decided that any PSR breaches had to be concluded within the same season of the relevant accounts being submitted.
This month, it was disclosed that the English Football League failed in an attempt to have a business plan imposed on Leicester amid concerns over their accounts this year. Nick De Marco, the sports lawyer, has defended Leicester so far in legal proceedings.
The Premier League’s statement said it had “referred Leicester City to an independent commission for an alleged breach of PSRS and for failing to submit their audited financial accounts”.
It added: “Leicester City were relegated to the Championship prior to the introduction of the Premier League’s new Standard Directions, which prescribe a timeline within which PSR cases should be heard. Therefore, the proceedings will be conducted in accordance with a timetable to be set by the independent commission.”