The Premier League has revealed that all 20 clubs have avoided breaching the league’s Profit and Sustainability (PSR) rules.
Stakeholders of England’s top-flight league patiently awaited the Premier League to announce its findings today (14 January) after asking all clubs to submit financial accounts for the 2023/24 season by 31 December.
Manchester United, Leicester City, Nottingham Forest and Everton were earmarked as the clubs with the highest chance of receiving a dreaded points deduction, though that has not been the case.
Currently, PSR states that clubs cannot post losses of more than £105m over a three-year period. Last year, the league handed Everton and Nottingham Forest point deductions – Everton’s 10 was reduced to six, whereas Forest’s four stood after an unsuccessful appeal.
Additionally, Leicester City were also handed a point deduction after the midlands club achieved promotion to the Premier League, which would have seen them start the 2024/25 season at a significant disadvantage.
However, Leicester successfully managed to argue its case and the point deduction was scrapped. Despite this, football finance experts were unsure if the newly promoted club had done enough to avoid a penalty this year.
Football finance expert Kieron O’Connor, who is behind the Swiss Ramble blog, forecasted Leicester would be around £12m in breach – though thankfully for the Foxes this hasn’t come to fruition.
Commenting to Insider Sport, the Premier League said: “Issues as to the jurisdiction of the Premier League over Leicester City Football Club in relation to PSR compliance are currently the subject of confidential arbitration proceedings.
“Accordingly, neither the League nor the club will make any further comment at this stage about any aspect of the club’s compliance or otherwise with any of the PSR or related Rules, save to say that no complaint has been brought against Leicester by the League for any breach of the PSRs for the period ending Season 2023/24.”
The aforementioned clubs will all have to be cautious, as while the January transfer window is currently open there are a lot of clubs teetering on the edge of PSR.
However, a talking point discussed across the English football ecosystem is: is it better to take the point deduction to invest in the club?
This viewpoint stems from the idea that if a club receives a point deduction but manages to survive relegation, they are still better off than a club that has adhered to the rules and not invested or adhered to the rules and been relegated.