Premier League closes PSR loophole that saw former champions escape points deduction

PREM chiefs have moved to close the rules loophole that saw Leicester escape a PSR sanction.

League bosses were left furious and embarrassed in September when an appeal board ruled the Prem did not have the right to charge them for losses in excess of the permitted limit of £105m in the three seasons up to 2022-23.

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Prem bosses have closed a loophole used by Leicester to escape a PSR charge[/caption]

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Ruud van Nistelrooy’s men are on the cusp of an instant return to the Championship[/caption]

The Foxes had been facing a six-point deduction this term after returning to the Prem as Championship winners last season.

But the panel upheld Leicester’s claim that the Prem could not sanction them when the club had become a member of the EFL following their relegation that season.

The appeal board accepted that Leicester were not subject to Prem rules because the club’s accounting period ended on 30 June 2023, “after the point the club had ceased to be a member of the League”.

Prem bosses promised to rewrite the rulebook to prevent other relegated clubs taking advantage of similar situations in future.

And in a series of changes introduced into the rulebook only on Friday, but which will take immediate effect, League chiefs have now tightened the regulations.

That includes ending the flaw that meant new clubs were able to claim the full £35m allowance for their promotion season, rather than have losses for that campaign in the EFL capped at £13m.

Crucially, the new Rule E.49 states that relegated clubs “remain bound” by Prem regulations, effectively aligning the top flight with the EFL in enforcing financial rules.

Leicester were able to successfully argue their two successive seasons of changed membership meant they were not subject to the regulations of either league.

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However, the new rules, agreed by the clubs and enacted last week, state that any punishments recommended by an EFL disciplinary panel can now be imposed by the Prem board in the top flight.

Leicester are destined for an immediate return to the Championship next season.

Ruud van Nistelrooy‘s appointment in November has failed to spark the Foxes’ season into life.

The ex-Manchester United striker has won just 3 out of 21 games at the King Power.

Leicester have earned only four points in total from their last 17 games. 

After Wolves’ 4-2 win over Tottenham last weekend, the Foxes’ fate could be sealed as early as next week.

If they fail to win their next match, at home to leaders Liverpool on April 20, their relegation will be confirmed.