-Credit:Mike Egerton/PA Wire.
The Premier League is set to issue complaints on Tuesday to any clubs found in breach of its profitability and sustainability rules (PSR), which could result in a points deduction. There has been speculation that Leicester City may face charges from the league, but neither party has commented on the matter.
Sources close to Chelsea’s ownership are highly confident of their compliance despite significant transfer spending since the 2022 buyout by a consortium featuring Todd Boehly and Behdad Eghbali, according to the Press Association. Everton and Nottingham Forest also express confidence in their compliance.
Both clubs were charged last January with breaching PSR, which stipulates that clubs are in breach if they exceed the maximum permitted losses of £105million over three seasons, a figure which is reduced for any of those seasons spent outside the Premier League. These charges were related to their 2022-23 accounts and were fully heard within the final months of last season under the league’s ‘standard directions’ for PSR breaches, with Everton docked two points and Forest four.
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Everton had also been docked 10 points in November 2023 for a PSR breach for the period ending with their 2021-22 accounts, a sanction which was reduced to six points on appeal last February. Clubs with aggregate losses in the last two accounting periods – 2021-22 and 2022-23 – were obliged under league rules to submit 2023-24 accounts to the Premier League by December 31, with any complaints to be issued to clubs by the league within 14 days.
Manchester United revealed a £113.2m loss for the year ending June 30, 2024, in September, but maintain their confidence in compliance considering all factors. Investments in infrastructure, academies, charity foundations, and women’s football are all items that can be treated as ‘add backs’ in a club’s PSR calculation and do not count towards the £105m loss figure.
There’s been speculation that Leicester might be the next to breach the rules. They were charged with a PSR violation in relation to their 2022-23 accounts last March, but an appeal in September determined that an independent commission established under Premier League rules had no jurisdiction over the club, as they had been relegated to the EFL by the time the 2022-23 accounting period ended.
The Premier League argued at the time that Leicester had made a loss of £129.4m over the three seasons up to and including 2022-23.
Insiders close to Chelsea maintain that they have adhered to all Premier League regulations and are confident of compliance. The PA news agency reported in September that the sale of two hotels to a company linked to the club’s owners had received Premier League approval.
The club has also sold the women’s team to the club’s parent company, a deal which is also subject to Premier League scrutiny. Current regulations allow profit from the sale of ‘fixed tangible assets’ to associated parties to be included in a club’s revenue calculation, provided those sales are deemed to have been done for fair market value.
In June last year, an attempt to shut down this loophole fell short at the league’s annual general meeting, with just 11 clubs in favour, missing the 14-club majority needed. Last August, Premier League chief Richard Masters voiced his approval of clubs seeking to “find an angle” for a competitive advantage, provided they stick to the rules.