For the three-year period from 2021 to 2024, no Premier League club has been charged with breaching the Profit and Sustainability (P&S) rules. Clubs who recorded losses in the first two seasons of this cycle were required to submit their accounts for the year ending June 2024 to the Premier League by December 31, 2024. This requirement was a key part of the league's ongoing financial monitoring.
Profitability and Sustainability rules explained
The P&S regulations allow Premier League clubs to accumulate losses of no more than £105 million over a three-season rolling period.
However, this threshold is adjusted for clubs spending time outside the Premier League during the reporting cycle. Specifically, the £105 million cap is reduced by £22 million for each season a club spends in a lower league.
Speculation around potential breaches
Throughout the reporting period, there was speculation that several clubs, with Leicester City being the most prominent example, could have breached the P&S rules.
However, after submitting their accounts, it has been confirmed that all clubs have adhered to the financial guidelines.
Leicester City’s ongoing appeal
Leicester City had raised concerns over potential penalties related to the period ending in 2022/23. The club argued that, due to their relegation to the Championship, they were under the jurisdiction of the English Football League (EFL) rather than the Premier League and should not be subject to the same rules. This dispute is currently undergoing arbitration, with the Premier League appealing Leicester's stance.
A statement from Leicester City clarified the situation: "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."
Previous P&S breaches by other clubs
It is worth noting that Nottingham Forest and Everton were each penalized in the previous cycle. Both clubs faced point deductions after failing to comply with the P&S rules for the 2020-2023 period, four points for Forest and eight points for Everton. These penalties highlighted the Premier League's commitment to enforcing financial regulations.
While some clubs faced scrutiny for potential breaches, the latest P&S compliance period has ended with no new charges. The arbitration process involving Leicester City continues, but for now, all clubs have successfully navigated the financial rules set out by the Premier League.