Leicester City have won an appeal against a decision that could have led to a points deduction for an alleged breach of Premier League Profitability and Sustainability (PSR) rules, the club said on Tuesday.
Leicester, who are back in the top flight after winning the Championship last season, appealed on the basis that an independent commission ruling on the case did not have jurisdiction, which was upheld by an independent appeal board.
The decision came on the grounds that Leicester's accounting period ended on June 30, 2023, when the club was no longer a member of the Premier League following their relegation to the second tier the previous month.
Premier League clubs are only allowed to lose up to £105 million pounds ($137.56 million) over a three-season period under the PSR rules, and both Everton and Nottingham Forest were given points deductions last term.
The appeals board concluded that the point of time at which Leicester allegedly exceeded the loss threshold could not have come before June 30, and any losses could, in part, result from their trading activities after they ceased to be a Premier League club.
"Leicester City welcomes the Appeal Board's comprehensive decision, which supports our consistently stated position that any action against the Club should be pursued in accordance with the applicable rules," the Foxes said in a statement.
Leicester were first referred by the Premier League to the independent commission in March, and the commission dismissed the club's first challenge to its jurisdiction to hear the case.
The Premier League said they were surprised and disappointed by the decision announced on Tuesday.
"The Appeal Board's decision effectively means that, despite the club being a member of the League from Seasons 2019/20 to 2022/23, the League cannot take action against the club for exceeding the relevant PSR threshold in respect of the associated accounting periods," the Premier League said in a statement.
Leicester responded in their own press release, saying they wanted to avoid any misunderstandings which could arise in light of the Premier League's statement in response to the appeal decision.
"Leicester City wishes to emphasise the finding of the Appeal Panel that, when considering the wording which is actually used in the Premier League rules, the club did not breach the Premier League PSRs for the assessment period ending 30 June 2023," read the release.