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Big implications as Leicester hit out at being charged by the Premier League

Big implications as Leicester City hit out at being charged by the Premier League with both issuing a statement on Thursday evening.

The club have been referred to an independent commission for an alleged PSR. Now Leicester have responded, saying they are surprised and disappointed, and vow to defend themselves.

Leicester are alleged to have failed to submit their audited financial accounts to the Premier League for the 2022/23 season.

LEICESTER STATEMENT:

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.

LCFC has repeatedly demonstrated its commitment to the P&S rules through its operating model over a considerable period, achieving compliance while pursuing sporting ambitions that are entirely credible given the consistent success that the Club has achieved in that time, both domestically and in European competition. As we continue to represent the Club’s position, we will continue to fight for the right of all clubs to pursue their ambitions, particularly where these have been reasonably and fairly established through sustained sporting achievement.

The Club thanks its supporters for their understanding in this matter and for their continued support for our team, whose success on the pitch during the final weeks of the season remains our primary focus.

PREMIER LEAGUE STATEMENT:

The Premier League has today referred Leicester City FC to an independent Commission for an alleged breach of Profitability and Sustainability Rules (PSRs) and for failing to submit their audited financial accounts to the League.

The alleged breach relates to the assessment period ending Season 2022/23, when the club was a member of the Premier League. 

Leicester City were relegated to the EFL 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, and its final decision will be published on the Premier League’s website. 

Notes

Profitability and Sustainability Rules (see Premier League Handbook Section E)
– All Premier League clubs are assessed for their compliance with the Profitability and Sustainability Rules (PSRs) each year.

– Compliance is assessed by reference to the club’s PSR Calculation, which is the aggregate of its Adjusted Earnings Before Tax for the relevant assessment period.

– A club’s Adjusted Earnings Before Tax figure for each season takes account of its profit or loss after depreciation and interest, but before tax, and then applies a series of “add backs”  

– These “add backs” are costs that the Premier League and its clubs recognise to be in the general interest of the club and football, for example investment in infrastructure, community, women’s football, youth development and depreciation of tangible fixed assets Exceptionally, in relation to years 2019/20, 2020/21 and 2021/22 COVID-19 costs were also permitted to be included as “add backs”.

– Ordinarily, a club’s PSR Calculation is the aggregate of its Adjusted Earnings Before Tax over a three-year period. Following amendments made to the PSRs during COVID-19, the relevant figures for Seasons 2019/20 and 2020/21 are now averaged. In the present case, therefore, the relevant period includes Seasons 2022/2023, 2021/2022, and the average Adjusted Earnings Before Tax for Seasons 2020/2021 and 2019/20.

– A club will be in breach of the PSRs if its PSR Calculation over the relevant period results in a loss in excess of £105 million (with that threshold reduced by £22 million for each season that a club has been in the Championship during the relevant period).

– At the 2023 Annual General Meeting (AGM), Clubs agreed to bring forward the date for the submission of audited Annual Accounts for Clubs forecasting a loss to 31 December (in accordance to Rule E.50.2).

– Clubs agreed to introduce Standard Directions for PSR cases (Appendix 1 to the Rules) that seek to ensure such cases are resolved in the same season the complaint is issued, with any sanction handed down prior to the subsequent Annual General Meeting. (Appendix 1 page 535).

– Leicester City were relegated to the EFL Championship before the Premier League’s new Standard Directions, which prescribe a timeline within which PSR cases should be heard, came into force. Therefore, the proceedings will be conducted in accordance with a timetable to be set by the independent Commission.

Premier League investigations and independent Commissions 
– The Premier League Board has the power to investigate any suspected or alleged breach of Premier League Rules 

– There are a number of options available to the Board where it suspects or alleges a breach of the Rules. For PSR cases, the matter will be handed to an independent Commission to determine whether there is a breach and, if so, what the sanction should be.

– The League has access to an independent Judicial Panel, comprising a number of legal, financial and other experts. Members of the Judicial Panel are appointed, in accordance with Premier League Rules W.19, W.20 and W.26, by its independent Chair, Murray Rosen KC, an experienced barrister. It is the Chair who selects members of the Judicial Panel to sit on Commissions, which are independent of the Premier League and its clubs.

– All proceedings before an independent Commission are confidential and heard in private. This includes the date and location which can’t be announced in advance.

– There are a range of sanctions available to the independent Commission which include fines, points deductions and other sporting sanctions .

– Under Premier League Rule W.82.2, at the conclusion of proceedings, an independent Commission’s final decision will be made public via the Premier League’s website .

– A party to the proceedings which wishes to challenge a decision of the Commission may to do so under Section W of the Premier League Rules.

– The Appeal Board is also appointed by Mr Murray Rosen KC and must have three members, one of whom should have held judicial office, and would sit as the chair of the Appeal Board.

– The proceedings of the Appeal Board are also confidential and heard in private.

– The Appeal Board has wide discretion in respect of the appeal, and may allow it, dismiss it, or make any order that it deems fit (including varying the order of Commission).

– For further information on the disciplinary process, please see Section W of the Premier League Handbook.

This is how Twitter users reacted amid big implications as Leicester hit out at being charged by the Premier League…

@mattyfromle: Start us on -20. We are the famous Leicester City. Being the underdog is what we do. #lcfc

@swainwright_: Don’t forget though, we’re the best ran club in the country because we gave our clappers, beers and coconuts.. Shambles. #LCFC

@Sam_Rowan: I know its Leicester and relegation aside, which can happen to most in the top-flight, it’s another club who has dared to show ambition, ultimately toppling the lot of the golden 6, falling foul of PSR. Yet the likes of City and Chelsea get away with it. It stinks. #nffc #lcfc

@jamesrl2476: Bollocks to the pl. corrupt twats!

@Mattt_lcfc: rudkin and top need to address the fans directly instead of chatgpt statements through social media. they’ve ran the club into the ground and have said absolutely nothing to us about it. goes against everything vichai stood for #lcfc

@BenWasley1: Club is in the mud 💩 #lcfc

@Sam__SFC: Personal interest inside, the complete disregard #LCFC have shown for the rules merits a sizeable points deduction

@CBailey31: Cheating and still getting relegated is the most Leicester thing ever. Up the shit cheaters #lcfc

@Pu55yman_Dan: They’re literally only doing this because we submitted one of our audited files late to the league it’s an absolute joke that we’ve been charged. Premier ship is corrupt

@JRCT70: I’m looking forward to all the pundits complaining about how poor next season’s Premier League is because every team has had to sell their best players and effectively start again. Whilst the big 6 mop them up because somehow they can spend what they like.

@OlliePitt87: East Midlands football is a fun place

@Dan_1884: Whether we agree with the rules or not, if we have bent the rules heads need to roll. The entire lot need clearing out starting with Susan Whelan. #lcfc

@supersouttar: No one else to blame but yourselves, yes it’s unfair bigger clubs have been allowed to get away with it for so long but this has been brought upon by the whole boards ineptitude to handle finances when we were trying to compete, as always they’ve all got to go

@Chris_LCFC1884: Was relegation part of the plan to try and avoid this charge? Seems drastic, but won’t put owt past these imbeciles. #LCFC

@ashclarke10: Love coming on here and seeing fingers pointed here there and everywhere. Enjoyable viewing from that aspect but on the other hand we knew it was coming weeks ago. Start next season on -5/10/20. Just can’t let if effect this season 😩 #lcfc

@stulcfc: Hindsight is a wonderful thing. This has just crept up on us out of nowhere. It’s absolutely not related to failing to sack our manager 2.5 years ago #lcfc

@_dc194: Jesus, going down swinging or what. We’ve gone rogue. #lcfc

@DeKuip02: The Premier League are killing their own product. The teams with the most revenue are at an unfair advantage – it makes a joke of the league and waters down any success they have. No wonder they’re peddling ‘PSR’ instead of ‘FFP’, there’s nothing ‘Fair’ about it. #Leicester

@Mr_Dolf: Surely FFP/PSR’s days are numbered? Everyone in the PL apart from the American owned big clubs and bloody Spurs getting shafted by it. Needs a bit of solidarity here #NUFC #LCFC

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