The Premier League has decided not to charge any clubs for breaching its financial rules, as all clubs were found to be financially compliant for the 2023-24 season.
Top-flight clubs were required to submit their accounts for the season by 31 December. The Premier League has confirmed that all 20 clubs have adhered to its profit and sustainability (PSR) rules.
Under these rules, clubs cannot make losses of more than £105m over a three-year period.
It had been reported that Leicester City was one of the clubs close to breaching the Premier League’s loss limits. However, the Foxes avoided a points deduction after winning an appeal against a charge in September. This charge concerned the three years up to the end of the 2022-23 season.
An independent panel ruled that the Premier League had no authority to punish Leicester, as they had been relegated to the EFL Championship when their accounting period ended on 30 June 2023.
Leicester and the Premier League both issued a statement on Tuesday, confirming the matter is still under “confidential arbitration proceedings.”
The Premier League introduced profit and sustainability rules in the 2015-16 season to prevent clubs from overspending, following Portsmouth’s financial troubles, which led to them being the first and only Premier League club to go into administration.
These rules allow clubs to report losses of up to £105m over a three-year period. Spending on academies, infrastructure, and community projects is exempt from these rules.
Everton was the first club to be charged for breaching the Premier League’s financial rules in 2023. The Toffees were found to have posted losses of £124.5m for the 2021-22 period and were docked 10 points, which was later reduced to six points on appeal.
In January 2024, Everton were sanctioned again, along with Nottingham Forest. Everton received an additional two-point deduction for exceeding the loss limit by £16.6m over the three-year period to 2022-23.
Forest were deducted four points after an independent panel found that their losses for 2022-23 exceeded the £61m threshold by £34.5m.
Clubs not in the Premier League for the entire previous three-year cycle, such as Forest, who were promoted in 2022, have separate thresholds for their losses.
Based on player trading in the summer and expert analysis of club finances, Leicester City, Aston Villa, Newcastle United, and Everton were reportedly the clubs closest to breaching the PSR limits.
