Premier League amends PSR rules after Leicester City dispute

The Premier League has amended its Profitability and Sustainability Rules (PSR) to close a loophole that allowed Leicester City to escape sanctions for financial overspending. Following Leicester's successful appeal in September 2023, which claimed the league lacked jurisdiction after their relegation, the new rules now state that relegated clubs remain bound by the league's regulations until they fulfill all obligations from their last season. These changes were introduced in the latest version of the Premier League handbook and also clarify allowable losses for clubs, ensuring they cannot exploit relegation to avoid penalties. The modifications aim to prevent similar situations in the future and align the financial rules of the Premier League with those of the EFL. Leicester continues to face arbitration regarding the jurisdictional dispute, and the outcome could lead to further sanctions for the club. The league's adjustments reflect a broader effort to enforce stricter financial accountability among its clubs.