According to Martyn Ziegler of the London Times, the Premier League has “acted to close the loophole that caused it to lose a legal case” against Leicester City over a Profitability and Sustainability Rules charge. The most recent edition of the Premier League handbook “now clearly states that clubs who are relegated to the Championship remain bound by its PSR rules.” It also states that the Premier League’s board “can enforce sanctions imposed by the EFL on clubs who are then promoted to the top flight.” In September, Leicester won a legal challenge claiming that the Premier League “lacked jurisdiction after they were relegated in 2023.” Leicester had also “disputed the cap on the losses allowed under the PSR.” However, Premier League rules “now state that losses should be a maximum” of $17.2 million (£13 million) per year in the EFL and $46.3 million (£35 million) in the top flight (London Times, 4/15).
STRONGER POSITION: THE ATHLETIC’s Weatherspoon and Brodie write that the change “strengthens the Premier League’s hand in pursuing charges against relegated clubs that it believes have breached PSR.” The proposal’s description “largely mirrors that enacted by the EFL, reducing the scope for clubs to manoeuvre between the divisional gaps in the way Leicester managed previously.” Leicester believes the change “represents a worrying shift in the regulatory landscape.” The Emirates Football League is “already expected to be readying charges for if — or when — the club is relegated back to its jurisdiction.” This change in the 2024-25 rules “also means the club’s loss limit for the current three-year PSR cycle is set” at $109.8 million (£83 million), and “confirms the club could be punished by the Premier League if they breach that limit, even if they are relegated” (THE ATHLETIC, 4/15).
