Premier League News PSR: Clubs avoid profit and sustainability charges in 2021-2024

No Premier League club has been charged with breaches of profit and sustainability rules over the three-year period 2021-2024.

Clubs that recorded losses in the first two seasons of the last three-season cycle were required to submit their reports for the year ending June 2024 to the Premier League by December 31.

Profitability and sustainability rules mean clubs cannot lose more than £105m over three seasons.

This amount is reduced by £22 million for each season the club spends outside the Premier League during the reporting period.

There was speculation that several clubs – most notably Leicester – were at risk of breaching the rules, but all have complied.

Leicester successfully appealed against the deduction of points for the period ending in the 2022/2023 season, arguing that the Premier League could not charge them because they were relegated to the Championship and fell under the jurisdiction of the EFL.

The Premier League has appealed against this decision and the arbitration process is ongoing.

Leicester’s statement said: “Issues relating to the Premier League’s jurisdiction over Leicester City Football Club in relation to compliance with the PSR are currently the subject of confidential arbitration proceedings.

Accordingly, neither the League nor the club will make any further comment at this stage on any aspect of the club’s compliance or otherwise with any of the PSRs or related policies, other than to state that the League has not raised any complaint against Leicester with due to any violations of the PSR regulations for the period ending the 2023-24 season.”

Nottingham Forest and Everton were penalized and deducted four and eight points respectively a year ago for breaching the PSR regulations for 2020-2023.

Tuesday was the deadline for lodging any complaints under the league’s fast-tracked “standard guidance” for PSRs, which stipulates that the entire process – including appeals – must be completed by June 1, before Premier League “shares” are transferred from relegated clubs to promoted clubs.

The PSR is to be replaced by a new set of financial rules for next season.

Instead, clubs will be limited to spending 85 percent of revenues on squad-related costs – this will drop to 70 percent for clubs participating in UEFA competitions to comply with regulations at continental level.

Why Leicester aren’t celebrating PSR’s win

Sky sports Rob Dorsett ON Leicester avoiding PSR fees for 2021-2024:

“There are no big celebrations at Leicester City today as it is not yet clear regarding the PSR and finances are still very tight. But the fact that at this stage they will not face sanctions for breaking the rules – and, crucially, immediate points deduction – will be a huge boost for Ruud van Nistelrooy and the players fighting for relegation.

“The Premier League is not seeking charges against Leicester because they cannot at this time. Until the outcome of the confidential arbitration proceedings is known, it is unclear whether the league has jurisdiction over the East Midlands club during the season it held. in the Championship.

“In September 2024, Leicester won a legal battle arguing that because they had already been relegated from the top flight in June 2023 when the reports were submitted. Premier League regulations could not apply to them at the time. The league appealed this decision. , and the results of this arbitration are not yet known, nor is there a timetable for when they will be published.

“It is still possible that – if the arbitration process goes as in the Premier League – Leicester could be punished retroactively. Some reports suggest it has breached the last three-year accounting limit by £12m. But behind the scenes there is not only a rigid resolution that they have done nothing wrong, but also a tentative belief that this may be the end of Leicester’s PSR worries. Please note that the rules will change with the start of next season.

“But even if Leicester avoids a points deduction in the long term, the financial climate will be quite bleak – notwithstanding the fact that Leicester have worked extremely hard to reduce their costs in recent seasons. Following relegation in May 2023, he has raised almost £100m in 12 years with the sales of Kiernan Dewsbury-Hall to Chelsea, Harvey Barnes to Newcastle and Timothy Castagne to Fulham.

“They expect the arrival of new players this month to be offset by departures and even if they avoid relegation, they will almost certainly take a cautious approach to the summer transfer window.”

Why PSR news is good for Premier League clubs

Sky Sports News Chief Reporter Kaveh Solhekol:

“Quite a few Premier League teams (will be more relieved than others) as well as football fans as the last thing we want to do over the next few months is talk about endless PSR matters as well as having a Premier League table with asterisks next to the club names because they were deducted points for breaking financial rules.

“The good news is that no charges have been brought against any club; everything is clear.

“There is only one small question mark hanging over Leicester City as Leicester is still in a dispute with the Premier League and a confidential arbitration is taking place. It all has to do with the legal issue of whether Leicester City were a Premier League team when they filed their accounts for the season ending in summer 2023 because they were relegated.

“Leicester City argued: ‘Look, we were relegated, we were in the EFL, we weren’t a Premier League team so we shouldn’t have been accused of breaking financial rules.’ Everything is being sorted out at the moment.” in confidential arbitration proceedings.

“But having said that and taking that into account, overall I think it is good news for Premier League clubs that no one has been charged.”