‘Premier League makes move to close Leicester City loophole’ – Stefan Borson
Leicester City have been embroiled in a complex legal battle with the Premier League for an extended period following their financial rule breach.
Despite being charged by the Premier League for breaking the profit and sustainability rules (PSR) in 2022-23, Leicester avoided a points deduction after exploiting a loophole in the rules.
However, that case is still ongoing as the two parties remain in arbitration following the club’s breach.
The Premier League has now amended its handbook following a meeting between the 20 top-flight clubs earlier this month.
The new rule states: “If a club is relegated from the league, that club shall, notwithstanding relegation, remain bound by Rules E.47 to E.86 as if it were still a club, until such a time as it has complied with all of its obligations relating to all its obligations to its last season as a club.”
Finance expert Stefan Borson exclusively told Football Insider the rules have now been fixed after Leicester previously exploited a loophole following their relegation to the Championship in 2023.
Ruud van Nistelrooy’s side look set for an instant return to the Championship, as they currently sit second-bottom in the Premier League table and 17 points from safety.
Premier League copied EFL rules after Leicester twist
Borson revealed the Premier League rule changes have been copied from the EFL handbook.
He told Football Insider: “There is another catch-all rule that they brought in.
“We talked about this when the original Leicester decision happened, which was a way in which you can make sure that clubs that are relegated are still captured by the PSR rules, regardless of some technical argument about the date in which they were relegated.
“For example, we know that Leicester won their case because it was established that at the time of the sanction or the time of the assessment by the Premier League, the year-end on 30 June, they’d actually already been relegated.
“Therefore, they weren’t a Premier League team, and the commission found that effectively nobody had any jurisdiction over Leicester.
“Now, that’s been fixed, and it should have been fixed a long time ago by a catch-all. That effectively was copied from the EFL rulebook.
“Anyway, the sum total of all these changes I think is to confirm that there were some little holes in those rules. It does tidy them up.”
| Position | Team | GP | Pts | GD |
| 17 | Wolves | 32 | 35 | -14 |
| 18 | Ipswich Town | 32 | 21 | -34 |
| 19 | Leicester City | 32 | 18 | -45 |
| 20 | Southampton | 33 | 11 | -54 |
Ruud van Nistelrooy sack update emerges at Leicester
Football Insider revealed on 9 April Leicester will hold discussions over the immediate future of Van Nistelrooy as manager once their relegation is confirmed.
Sources say there is a “strong possibility” the 48-year-old could leave once the club are officially relegated to the Championship.
Industry expert Mick Brown told Football Insider Leicester are considering ex-Everton boss Sean Dyche and former Southampton manager Russell Martin as potential successors for Van Nistelrooy.
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