Latest news with #NickDeMarco
Yahoo
20-05-2025
- Business
- Yahoo
Leicester face Championship points deduction after fresh Premier League charges
Leicester City are facing the renewed threat of a points deduction after three fresh charges by the Premier League. Four weeks after Leicester's relegation to the Championship was confirmed, the club are now in danger of punishment next season for alleged financial breaches in the 2023-24 campaign. The Premier League has charged the 2015-16 title winners for allegedly breaking the profitability and sustainability rules [PSR] during their promotion season in the Championship, and failing to submit their annual accounts on time. Leicester are also accused of breaching 'the club's obligation to provide full, complete and prompt assistance to the Premier League in response to the League's inquiries.' This latest legal row will go before an independent commission and sources have claimed that, if found guilty, a likely sanction is a hefty points deduction. Recent changes to the rules now stipulate that any punishment can be applied at any time after a perceived 'loophole' was closed, so Leicester could be hit with a points deduction in the Championship next season. Earlier this season Leicester won a legal challenge on the basis that the league did not have jurisdiction to punish them for breaching the PSR threshold leading up to the 2022-23 season. The club said they had identified 'flaws' in the Premier League rules, with sports lawyer Nick De Marco and his team compiling their case. It was effectively argued that Leicester could not be punished by the Premier League as they had been relegated to the Championship when their accounting period ended on June 30. During Leicester's Championship season, the English Football League imposed a transfer embargo after the club allegedly breached the upper losses threshold. The investigation was then passed onto the Premier League following the club's promotion under Enzo Maresca last year. An EFL spokesperson said: 'The EFL notes that the Premier League has today referred Leicester City to an independent commission for an alleged breach of profit and sustainability rules for the period ending season 2023-24. 'The EFL commenced an investigation into this reporting period following the March 2024 submissions and as is permitted in accordance with EFL regulations, jurisdiction for that passed to the Premier League at the conclusion of the 2023-24 season on the club's promotion. We will now await the outcome of the Premier League proceedings and until then are not able to comment any further on the matter.' Leicester have reported financial losses of more than £200 million over the three-year reporting period. Clubs are permitted to lose £105 million in the Premier League, though clubs who have operated in the Championship are adjusted to £81 million. Leicester adopted a combative stance last year, issuing legal proceedings against both the Premier League and EFL. The Premier League's handbook states that any PSR complaint must be heard by an independent commission within 12 weeks of the charge. Under the management of former Manchester United striker Ruud Van Nistelrooy, Leicester are currently third from bottom and play their final game of the season at Bournemouth on Sunday. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
20-05-2025
- Business
- Telegraph
Leicester face Championship points deduction after fresh Premier League charges
Leicester City are facing the renewed threat of a points deduction after three fresh charges by the Premier League. Four weeks after Leicester's relegation to the Championship was confirmed, the club are now in danger of punishment next season for alleged financial breaches in the 2023-24 campaign. The Premier League has charged the 2015-16 title winners for allegedly breaking the profitability and sustainability rules [PSR] during their promotion season in the Championship, and failing to submit their annual accounts on time. Leicester are also accused of breaching 'the club's obligation to provide full, complete and prompt assistance to the Premier League in response to the League's inquiries.' This latest legal row will go before an independent commission and sources have claimed that, if found guilty, a likely sanction is a hefty points deduction. Recent changes to the rules now stipulate that any punishment can be applied at any time after a perceived 'loophole' was closed, so Leicester could be hit with a points deduction in the Championship next season. Earlier this season Leicester won a legal challenge on the basis that the league did not have jurisdiction to punish them for breaching the PSR threshold leading up to the 2022-23 season. The club said they had identified 'flaws' in the Premier League rules, with sports lawyer Nick De Marco and his team compiling their case. It was effectively argued that Leicester could not be punished by the Premier League as they had been relegated to the Championship when their accounting period ended on June 30. During Leicester's Championship season, the English Football League imposed a transfer embargo after the club allegedly breached the upper losses threshold. The investigation was then passed onto the Premier League following the club's promotion under Enzo Maresca last year. An EFL spokesperson said: 'The EFL notes that the Premier League has today referred Leicester City to an independent commission for an alleged breach of profit and sustainability rules for the period ending season 2023-24. 'The EFL commenced an investigation into this reporting period following the March 2024 submissions and as is permitted in accordance with EFL regulations, jurisdiction for that passed to the Premier League at the conclusion of the 2023-24 season on the club's promotion. We will now await the outcome of the Premier League proceedings and until then are not able to comment any further on the matter.' Leicester have reported financial losses of more than £200 million over the three-year reporting period. Clubs are permitted to lose £105 million in the Premier League, though clubs who have operated in the Championship are adjusted to £81 million. Leicester adopted a combative stance last year, issuing legal proceedings against both the Premier League and EFL. The Premier League's handbook states that any PSR complaint must be heard by an independent commission within 12 weeks of the charge. Under the management of former Manchester United striker Ruud Van Nistelrooy, Leicester are currently third from bottom and play their final game of the season at Bournemouth on Sunday.
Telegraph
15-04-2025
- Business
- Telegraph
Leicester City loophole closed by Premier League – this is what it means for promoted clubs
The Premier League has moved to close potential spending sanction loopholes for relegated or promoted clubs following legal battles with Leicester City. A tightening in the wording of the rules now stipulates allowable losses for applicable years in which a team may have been in the Championship. There is also a clarification that a relegated club will 'remain bound' by the rules 'until such time as it has complied with all of its obligations relating to its last season' in the top tier. The tweak, which is confirmed in the new Premier League handbook published last week, is intended to clamp down on clubs attempting to avoid spending sanctions if they have not been a top tier club for an entire three-year reporting period. Second-tier clubs have tighter spending limits, with a £41.5 million cap across three years. However, despite Premier League allowing £105 million, Leicester remain in arbitration with the league over the competition's jurisdiction relating to the 2022-23 season. The club had previously won a legal challenge on the basis that the league did not have jurisdiction after they had been relegated in 2023. The club said they had identified 'flaws' in the Premier League rules. With the assistance of sports lawyer Nick De Marco, Leicester's claim that the Premier League did not have jurisdiction was backed by an independent commission. The Premier League appealed against the decision, which must now be settled before any further action is taken. Leicester, now facing relegation again, were not charged for the 2023-24 season cycle. Despite reporting losses of £92.5 million and £89.7 million in the previous two years, Leicester raised over £90 million following relegation to the Championship. Harvey Barnes (£38 million to Newcastle), Kiernan Dewsbury-Hall (£30 million to Chelsea) and Timothy Castagne (£13.5 million to Fulham) were major sales, while Chelsea paid £10 million in compensation to appoint manager Enzo Maresca and his coaching staff. The handbook amendment was initially spotted by Stefan Borson, a lawyer and former financial adviser to Manchester City. Why did the rule need tightening? Essentially the Premier League wants to avoid any potential further legal disputes with recently relegated or promoted clubs who claim PSR sanctions are not applicable to them for seasons within a cycle in question that they spend outside the top flight. After Leicester's promotion back from the Championship just a year after their initial relegation, they began this campaign under threat of a hefty points deduction, charged with exceeding the Premier League's permitted £105m three-year loss limit. That case was thrown out in September, with the Premier League saying the independent panel's interpretation 'failed to take into account the purpose of the rules'. Nick De Marco, who represented Leicester, told the BBC: 'That wasn't a loophole. It is a very simple point. The Premier League should never have brought the case in the first place.' What has been added to the handbook? In the league's sanctions regime section of the new handbook, a new paragraph stipulates that 'if a Club is relegated from the League, that Club shall, notwithstanding relegation, remain bound by' the rules 'as if it were still a Club, until such time as it has complied with all of its obligations relating to its last Season as a Club'. There is also an addition providing further clarity to the cap on losses for seasons in which a team may have been in the tier below. The sum set out in loss calculations 'shall be reduced by £22m per Season, for each of the three Seasons prior to the current Season during which a Club was in membership of The Football League, up to a maximum deduction of £66m', the rules clarify.
