January 14 – All 20 Premier League clubs have been deemed financially compliant with the league’s profit and sustainability (PSR) regulations for the 2023-24 season, meaning no charges have been issued for breaches of financial rules across the top flight.
Under the PSR framework, introduced in the 2015-16 season to safeguard clubs from financial instability, teams are restricted to losses of no more than £105 million over a rolling three-year period. These regulations were established in the wake of Portsmouth’s 2010 administration and aim to promote sustainable spending in England’s richest football league.
Leicester City were one of the clubs reported to be close to breaching the PSR thresholds. However, the Foxes avoided any immediate sanctions following a successful appeal in September.
The case revolved around Leicester’s financial losses over the three years ending in the 2022-23 season, but an independent panel ruled that the Premier League lacked jurisdiction to penalise the club as they had been relegated to the EFL Championship before the financial reporting period concluded on June 30, 2023.
The matter remains unresolved, with both Leicester and the Premier League confirming that it is subject to ongoing confidential arbitration proceedings.
Spending on academies, infrastructure, and community projects is excluded from the PSR calculations, giving clubs room to invest in long-term growth while adhering to the financial rules. However, breaches have occurred in recent years, with notable cases involving Everton and Nottingham Forest.
In 2023, Everton became the first club charged for PSR violations, ultimately receiving a six-point deduction after an appeal. The club faced a second sanction in January 2024, losing two additional points for exceeding the allowed loss threshold. Nottingham Forest, who were promoted to the Premier League in 2022, were also penalised, with a four-point deduction for exceeding their adjusted loss limit by £34.5 million.
Before the 30 June 2023 reporting deadline, a few clubs were believed to be operating near the PSR margins, including Aston Villa, Newcastle United, Everton, and Leicester City. While these clubs avoided charges this time, their financial activities will likely remain under scrutiny in future reporting cycles.
Contact the writer of this story, Harry Ewing, at moc.l1736870431labto1736870431ofdlr1736870431owedi1736870431sni@g1736870431niwe.1736870431yrrah1736870431
