The Premier League has confirmed that no clubs will face charges for breaching Profit and Sustainability (PSR) rules for the 2022/23 season.
However, Leicester City remains in a precarious position, with their legal dispute over financial compliance still unresolved.
Leicester City, relegated to the Championship last season, argues that the Premier League lacks jurisdiction over their finances for 2022/23.
The club initially won its case in September, but the Premier League has appealed, and the matter is now subject to confidential arbitration.
A Premier League statement read: “Issues as to the jurisdiction of the Premier League over Leicester City Football Club in relation to PSR compliance are currently the subject of confidential arbitration proceedings.”
While other clubs have been cleared of PSR breaches after submitting their 2023/24 accounts, Leicester’s case could stretch into mid-2025.
What Are Profit and Sustainability Rules?
Introduced in 2015, the PSR framework aims to prevent financial mismanagement and excessive spending, following Portsmouth’s 2010 collapse into administration.
Clubs are allowed to lose up to £105 million over a three-year cycle or £35 million in a single season.
Investments in academies, infrastructure, and community projects are exempt from these calculations, providing some flexibility for clubs.
Past Punishments and Controversies
Everton became the first club penalized under PSR rules in 2023, receiving a six-point deduction on appeal after initially losing 10 points for exceeding the £105 million loss threshold by £19.5 million.
They were later docked two more points in 2024 for further breaches, while Nottingham Forest was hit with a four-point deduction for surpassing their loss limit by £34.5 million.
Clubs promoted during the reporting cycle, such as Nottingham Forest, face adjusted loss thresholds.
Player Trading and Financial Maneuvering
This season, some clubs engaged in creative transfers to stay within PSR limits. For instance:
- – Chelsea bought Omari Kellyman from Aston Villa for £19 million, while selling Ian Maatsen to Villa for £37.5 million.
- – Aston Villa and Everton swapped players, with Lewis Dobbin and Tim Iroegbunam transferring for reported fees of £9 million each.
These interlocking deals, completed before the June 30 financial year-end, highlight the lengths clubs go to maintain compliance.
Who Was at Risk?
Football finance experts identified Leicester City, Aston Villa, Newcastle United, and Everton as the clubs most likely to approach PSR limits this season.
While the Premier League has cleared all other clubs for now, Leicester’s unresolved case remains a focal point.