An independent Appeal Board has found that the Premier League’s Profit and Sustainability Rules do not apply to Leicester City FC (LCFC) for any breaches of loss thresholds which may have occurred in respect of the accounting period ending in the 2022/2023 season. This overturns the first instance decision.
In an article written for LawInSport, Zachary Sananes and Matthew Caples discuss the application of English law principles of contractual interpretation by both the Commission and Appeal Board in this case.
LawInSport subscribers can read the full article here.
What does the appeal decision say?
LCFC successfully argued before the Appeal Board that they were no longer bound by Premier League rules upon the time of their 2022-23 accounting period ending, and so could not be found in breach of Premier League PSR for the three season period ending that season.
The Appeal Board drew its conclusion on the basis that a club ceases to be a “Club” (as defined in the Premier League rules) when it ceases to hold a share in the Premier League. LCFC therefore ceased to be a “Club” on 13 June 2024.
Proceeding on the basis that a final PSR calculation could only be confirmed after a club is able to submit its annual accounts for the relevant period – LCFC’s accounting period ended on 30 June 2023 – the Appeal Board concluded that a PSR breach could not have occurred until after this date, by which time LCFC had ceased to be a “Club”.
Key points addressed
Zach and Matt start from the legal framework within which the PL Rules operate. The article in its entirety addresses:
- The precedent set in three cases cited in both decisions
- Application of Section W of the PL Rules to this case
- How the appeal decision differs from the first instance decision
- Potential for amends to the PSR in light of this outcome
You can find further information regarding our expertise, experience and team on our Commercial Litigation and Sports Disputes pages.
If you require assistance from our team, please contact us or alternatively request a call back from one of our lawyers by submitting this form.
Subscribe – In order to receive our news straight to your inbox, subscribe here. Our newsletters are sent no more than once a month.
