Leicester City have announced they have avoided a Premier League points deduction after the newly-promoted club appealed a Profitability and Sustainability Rules (PSR) decision.
The side, who face a battle to survive this season, were staring down the barrel of a sanction after the league referred them to an independent commission in March over suspected offences.
Leicester then challenged the commission's jurisdiction to hear the case, which applied to a period of time when they were in the Championship and not in the Premier League, but the body dismissed this earlier this year.
The King Power Stadium side then took the case to an independent appeal board which has now reversed the commission's decision, finding that the club did not breach PSRs for the assessment period ending June 30, 2023.
A statement released by Leicester this evening added that the appeal board also found 'flaws in the drafting of the Premier League's rules'.
Leicester City have announced they have avoided a Premier League points deduction after the newly-promoted club appealed a Profitability and Sustainability Rules (PSR) decision
The side, who face a battle to survive this season, were staring down the barrel of a sanction
The Foxes slipped to defeat to Aston Villa on Saturday leaving them with one point after three games
Last month the club seemed set to receive a points deduction this season for breaking spending rules ahead of their first season back in the Championship last year.
One of two inquiries into their finances stemmed from Leicester's compliance with PSRs, which are designed to ensure that clubs do not spend more than they earn, protecting them from financial crises while maintaining competitive balance in the league.
Clubs in the United Kingdom are allowed to report losses within a specified limit, beyond which they face sanctions such as fines or points deductions.
Leicester's financial troubles have been linked to their significant spending in recent years, both in terms of transfer fees and player wages.
They seemed set to face a fate similar to Everton, who received two separate points deductions for financial overspending during successive three-year periods.
Everton initially had a ten-point penalty reduced to six on appeal for breaches covering the 2021-2022 period.
However, they were later penalised with an additional two-point deduction for the subsequent period in 2022-23.
Leicester, having been charged by the Premier League in March, have been under scrutiny for exceeding the £105m loss limit for the financial period ending in 2022-23.
The case against Leicester City was then delayed after the club launched the legal challenge, arguing that the Premier League had no jurisdiction to charge them while they were competing in the Championship.
The King Power Stadium side then took the case to an independent appeal board
Steve Cooper's side seemed set to face a fate similar to Everton, who received two separate points deductions for financial overspending
The EFL had already begun investigating the club's finances during the 2023-2024 season, forecasting further overspending
The charges relate to Leicester's financial losses of £215.3m between 2020 and 2023, exceeding the £105m limit.
The EFL had already begun investigating the club's finances during the 2023-2024 season, forecasting further overspending.
While an attempt to enforce an EFL-run business plan was overturned on appeal, Leicester faced a transfer ban last season.