Leicester will avoid a points deduction this season after successfully arguing that the Premier League had no jurisdiction over them when it charged the club with a breach of profit and sustainability regulations. An independent appeal board has ruled that the top flight did not have the power to refer the Foxes to an independent commission in the 2023-24 season, during which they were in the Championship.

In March, the Premier League, which says it is 'surprised and disappointed' by the ruling, referred Leicester to an independent commission for an alleged PSR breach. The club's initial complaint that the commission could not rule over them while they were in the Championship was thrown out.

However, the Midlands club have now won a decision against that ruling and are unlikely to face a points deduction this season. An appeal board has reversed the commission's findings.

Leicester said in a statement: “Leicester City welcomes the appeal board’s comprehensive decision, which supports our consistently stated position that any action against the club should be pursued in accordance with the applicable rules.

“To avoid any misunderstandings which may arise in light of the statement which has been issued by the Premier League in response to the appeal decision, Leicester City wishes to emphasise the finding of the appeal panel that, when considering the wording which is actually used in the Premier League rules (in accordance with established principles of English law) the club did not breach the Premier League PSRs for the assessment period ending 30 June 2023.

“In its decision, the Appeal Board (which was made up of a panel of three experienced, senior lawyers, two of whom are former Court of Appeal judges) identifies flaws in the drafting of the Premier League’s rules.

“In challenging the Premier League’s attempts to charge Leicester City, the Club has simply sought to ensure (in the interests of providing consistency and certainty for all clubs) that the rules are applied based on how they are actually written.”

As per Premier League rules, clubs are permitted to lose only a maximum of £105million over a three-year period. The league charged Leicester while they were a Championship club, having been relegated in May 2023. The Foxes won promotion back to the top flight last term and faced the threat of a points deduction if their appeal was thrown out.

A Premier League statement read: “The Premier League is surprised and disappointed by the independent Appeal Board’s decision to uphold an appeal lodged by Leicester City FC regarding the League’s jurisdiction over the club’s alleged breach of its Profitability and Sustainability Rules (PSRs) when the club was a member of the Premier League.”

It continued: “The appeal board’s decision effectively means that, despite the club being a member of the league from seasons 2019/20 to 2022/23, the league cannot take action against the club for exceeding the relevant PSR threshold in respect of the associated accounting periods.

“The Premier League is very disappointed with the appeal board’s decision, and the limited reasons provided for it. The league remains of the view that the original commission took the right approach in interpreting the rules in a practical and workable way that gives effect to their intended purpose.

“In overturning the original commission’s findings, the Premier League considers the appeal board’s decision fails to take into account the purpose of the rules, all relevant parts of the PSRs and the need for effective enforcement of alleged breaches to ensure fairness among all clubs.