Premier League to File Complaints Over PSR Violations, Potential Points Deductions Loom
The Premier League is gearing up to file complaints against clubs suspected of breaching its Profitability and Sustainability Regulations (PSR), a move that could result in serious consequences, including potential points deductions. These complaints, expected to be lodged on Tuesday, could dramatically impact the league standings. Among the clubs reportedly under scrutiny is Leicester City, though neither the club nor the league has issued an official statement regarding the allegations.
Despite the looming threats, several clubs, including Chelsea, Everton, and Nottingham Forest, have publicly declared their confidence in adhering to the PSR rules. Sources close to Chelsea’s ownership have emphasized that the club remains compliant, despite substantial spending following the 2022 takeover by a consortium led by Todd Boehly and Behdad Eghbali. Similarly, Everton and Nottingham Forest assert their adherence to the regulations, dismissing any concerns over their financial conduct.
Both Everton and Nottingham Forest were previously charged in January for breaching PSR rules, which occur when a club’s losses exceed the permitted £105 million over a three-year period, adjusted for any seasons spent outside the Premier League. The charges were related to their financial reports from the 2022-23 season and were handled through the league’s standard disciplinary procedures. This resulted in points deductions—two for Everton and four for Forest—underscoring the severity of such violations.
Everton’s financial struggles have been well-documented, with the club receiving a 10-point deduction in November 2023 for exceeding PSR limits during the 2021-22 season. However, following an appeal in February 2024, the penalty was reduced to six points. Clubs with cumulative losses over the 2021-22 and 2022-23 seasons were required to submit their financial accounts for the 2023-24 season by December 31, 2024. The Premier League was given a two-week window to issue any complaints based on these submissions.
Manchester United, which reported a significant £113.2 million loss for the fiscal year ending June 30, 2024, remains confident in its compliance with PSR regulations. The club argues that allowable deductions for investments in infrastructure, youth academies, charitable initiatives, and women’s football keep them within the £105 million loss threshold. These investments are excluded from the loss calculations, providing United with some breathing room despite their hefty financial report.
Leicester City, on the other hand, may not be as fortunate. Speculation is rife that the club could face penalties after being charged in March for a PSR breach linked to their 2022-23 financial reports. However, a ruling in September determined that an independent commission lacked jurisdiction over Leicester, as they had been relegated to the English Football League (EFL) by the end of that accounting period. The Premier League had previously argued that Leicester recorded a £129.4 million loss over the three seasons leading up to 2022-23.
Chelsea, for its part, continues to assert its compliance with PSR regulations, supported by league-approved transactions. These include the sale of two hotels to a company associated with its ownership group and the sale of the women’s team to the club’s parent company. While these deals are under Premier League scrutiny, Chelsea insists they align with regulations that permit profits from the sale of fixed assets to be included in revenue calculations, provided they reflect fair market value.
Efforts to tighten these regulations and close potential loopholes allowing such transactions were unsuccessful at the league’s 2023 annual general meeting. The proposed changes received support from only 11 clubs, falling short of the 14 required to implement new rules. Premier League CEO Richard Masters later expressed approval of clubs finding competitive advantages within the existing regulations, as long as they remained compliant.
As the Premier League prepares to file these complaints, the football world watches closely. The outcomes could reshape the competitive landscape of the league, reinforcing the importance of financial responsibility and compliance in maintaining the integrity of one of the world’s most prestigious footb
all competitions.