LCFC Statement – 21 March, 2024 & Related Views

[davieG]

https://www.lcfc.com/news/3938901/lcfc-statement--21-march-2024

 

Leicester City is surprised at the actions the Premier League has taken today. The Club is extremely disappointed that the Premier League has chosen to charge LCFC now, despite the Club’s efforts to engage constructively with the Premier League in relation to the matters that are the subject of this charge, even though LCFC is not currently a Premier League club.
LCFC remains willing and eager to engage constructively with the Premier League and the EFL to seek the proper resolution of any potential charges, by the right bodies, and at the right time. The Club continues to take careful advice about its position and, if necessary, will continue to defend itself from any unlawful acts by the football authorities, should they seek to exercise jurisdiction where they cannot do so, as occurred earlier this year.

LCFC has repeatedly demonstrated its commitment to the P&S rules through its operating model over a considerable period, achieving compliance while pursuing sporting ambitions that are entirely credible given the consistent success that the Club has achieved in that time, both domestically and in European competition. As we continue to represent the Club’s position, we will continue to fight for the right of all clubs to pursue their ambitions, particularly where these have been reasonably and fairly established through sustained sporting achievement.

The Club thanks its supporters for their understanding in this matter and for their continued support for our team, whose success on the pitch during the final weeks of the season remains our primary focus.

[davieG]

Premier League statement
21 Mar 2024

 

https://www.premierleague.com/news/3938339

 

The Premier League has today referred Leicester City FC to an independent Commission for an alleged breach of Profitability and Sustainability Rules (PSRs) and for failing to submit their audited financial accounts to the League.

The alleged breach relates to the assessment period ending Season 2022/23, when the club was a member of the Premier League. 

Leicester City were relegated to the EFL Championship prior to the introduction of the Premier League’s new Standard Directions, which prescribe a timeline within which PSR cases should be heard. Therefore, the proceedings will be conducted in accordance with a timetable to be set by the independent Commission, and its final decision will be published on the Premier League’s website. 

Notes
Profitability and Sustainability Rules (see Premier League Handbook Section E)
- All Premier League clubs are assessed for their compliance with the Profitability and Sustainability Rules (PSRs) each year.
- Compliance is assessed by reference to the club’s PSR Calculation, which is the aggregate of its Adjusted Earnings Before Tax for the relevant assessment period.
- A club’s Adjusted Earnings Before Tax figure for each season takes account of its profit or loss after depreciation and interest, but before tax, and then applies a series of "add backs"  
- These "add backs" are costs that the Premier League and its clubs recognise to be in the general interest of the club and football, for example investment in infrastructure, community, women’s football, youth development and depreciation of tangible fixed assets Exceptionally, in relation to years 2019/20, 2020/21 and 2021/22 COVID-19 costs were also permitted to be included as "add backs".
- Ordinarily, a club’s PSR Calculation is the aggregate of its Adjusted Earnings Before Tax over a three-year period. Following amendments made to the PSRs during COVID-19, the relevant figures for Seasons 2019/20 and 2020/21 are now averaged. In the present case, therefore, the relevant period includes Seasons 2022/2023, 2021/2022, and the average Adjusted Earnings Before Tax for Seasons 2020/2021 and 2019/20.
- A club will be in breach of the PSRs if its PSR Calculation over the relevant period results in a loss in excess of £105 million (with that threshold reduced by £22 million for each season that a club has been in the Championship during the relevant period).
- At the 2023 Annual General Meeting (AGM), Clubs agreed to bring forward the date for the submission of audited Annual Accounts for Clubs forecasting a loss to 31 December (in accordance to Rule E.50.2).
- Clubs agreed to introduce Standard Directions for PSR cases (Appendix 1 to the Rules) that seek to ensure such cases are resolved in the same season the complaint is issued, with any sanction handed down prior to the subsequent Annual General Meeting. (Appendix 1 page 535).
- Leicester City were relegated to the EFL Championship before the Premier League’s new Standard Directions, which prescribe a timeline within which PSR cases should be heard, came into force. Therefore, the proceedings will be conducted in accordance with a timetable to be set by the independent Commission.

Premier League investigations and independent Commissions 
- The Premier League Board has the power to investigate any suspected or alleged breach of Premier League Rules 
- There are a number of options available to the Board where it suspects or alleges a breach of the Rules. For PSR cases, the matter will be handed to an independent Commission to determine whether there is a breach and, if so, what the sanction should be.
- The League has access to an independent Judicial Panel, comprising a number of legal, financial and other experts. Members of the Judicial Panel are appointed, in accordance with Premier League Rules W.19, W.20 and W.26, by its independent Chair, Murray Rosen KC, an experienced barrister. It is the Chair who selects members of the Judicial Panel to sit on Commissions, which are independent of the Premier League and its clubs.
- All proceedings before an independent Commission are confidential and heard in private. This includes the date and location which can’t be announced in advance.
- There are a range of sanctions available to the independent Commission which include fines, points deductions and other sporting sanctions .
- Under Premier League Rule W.82.2, at the conclusion of proceedings, an independent Commission’s final decision will be made public via the Premier League’s website .
- A party to the proceedings which wishes to challenge a decision of the Commission may to do so under Section W of the Premier League Rules.
- The Appeal Board is also appointed by Mr Murray Rosen KC and must have three members, one of whom should have held judicial office, and would sit as the chair of the Appeal Board.
- The proceedings of the Appeal Board are also confidential and heard in private.
- The Appeal Board has wide discretion in respect of the appeal, and may allow it, dismiss it, or make any order that it deems fit (including varying the order of Commission).
- For further information on the disciplinary process, please see Section W of the Premier League Handbook.

 

[davieG]

For Reference being discussed here - 

 

[davieG]

https://www.lcfc.com/news/3939567/lcfc-statement--22-march-2024

 

LCFC Statement – 22 March, 2024
CLUB NEWS

LCFC has been compelled today to issue two urgent legal proceedings against the Premier League and the EFL. LCFC will be seeking that each of these proceedings is determined by an appropriate and fully independent legal panel.
The Club is committed to ensure that any charges against it are properly and proportionately determined, in accordance with the applicable rules, by the right bodies, and at the right time.

While LCFC would prefer the proceedings to be in public, so its supporters and the wider world can be informed about the important issues of football governance that will be considered, the relevant rules require that these proceedings are conducted confidentially, and LCFC will therefore not be able to comment further about them at this stage.

We reaffirm the Club’s position that we will continue to fight for the right of Leicester City and all clubs to pursue their ambitions, particularly where these have been reasonably and fairly established through sustained sporting achievement.

The Club further notes that at 4pm today the EFL issued a public notification that LCFC has been placed under a registration embargo pursuant to its P&S rules. The EFL is aware that LCFC has disputed the EFL’s entitlement to impose this constraint, which is both restrictive and premature, with more than a quarter of the Club’s 2023/24 reporting period remaining.

[davieG]

https://footballeconomyv2.blogspot.com/2024/03/stakes-are-high-for-foxes-as-they-fight.html

 

Stakes are high for Foxes as they fight back
March 23, 2024
The Premier League’s statement this week said it had referred Leicester City to an independent commission for an alleged PSR breach and for failing to submit their audited financial accounts to the league for the 2022-23 season, when they were still in the Premier League.

The Premier League has yet to see the accounts — although they were submitted to the English Football League earlier this month — and Leicester believe they do not have to share them with the Premier League as they are now an EFL club and therefore not bound by the top flight’s new December deadline brought in after Leicester were relegated in May 2023.

It seems from Leicester’s statement yesterday that they are up for a fight on this, unlike Forest, who opted for a path-of-least-resistance approach to have their penalty reduced for good behaviour.

Leicester’s legal team, led by Nick De Marco, has already written to both leagues warning them that they will ask for a Rule K arbitration hearing (the FA system for settling disputes) to get a ruling on whether the Premier League has the right to charge and sanction them this season, which will prolong the process.

The stakes are high for Leicester. If they got a points penalty now and that stopped them from getting promoted, they would face a huge cost-cutting exercise or be in breach again. They would be forced to accept a business plan from the EFL, which effectively means operating under special measures.

Such an exercise could leave them stuck in the Championship for several years as they regrouped and possibly affect their chances of staying up should they return to the Premier League.

But another factor is the views of clubs they are competing against this season. Some feel Leicester cynically chose to keep a Premier League-level squad together this season, knowing they were unlikely to be punished for it until they had already gained their objective.

However, Leicester fans might argue that Big Six clubs resent the way in which they won the Premier League title, although it enabled the league to claim that anyone could win it.

The biggest winners will probably be the lawyers who will claim substantial fees, not football.

[davieG]

https://www.leicestermercury.co.uk/sport/football/football-news/mp-reveals-letter-sent-premier-9185163

 

MP reveals letter he has sent to Premier League in wake of Leicester City FFP charges
Leicester City are disputing charges from the Premier League and the EFL after the club were allegedly found to have breached spending rules under tough profitability and sustainability regulations

SPORT
ByJoseph Chapman
11:22, 23 MAR 2024UPDATED11:23, 23 MAR 2024
Leicester City's King Power Stadium
Leicester City are contesting charges from the Premier League and EFL (Image: Plumb Images/Leicester City FC via Getty Images)

Jonathan Ashworth, the Labour MP for Leicester South, has written to the Premier League's managing director Richard Masters after Leicester City were referred to an independent commission for allegedly breaching profitability and sustainability rules (PSR), and failing to submit audited finances.

City have begun legal proceedings against both the Premier League and the EFL, who could both implement punitive points deductions against the club if alleged financial fair play (FFP) breaches are proven.

The Foxes were relegated from the Premier League last year and have, despite a recent wobble, enjoyed a generally excellent season in the Championship under Enzo Maresca. They sit second, a point behind leaders Leeds United, with nine matches remaining.

Away from the pitch, though, uncertainty reigns. Not only do Leicester face top-flight action, the EFL have made the club subject to transfer embargo in relation to spending breaches. The club intend to contest the charges, but with the financial year ending on June 30, they could be under pressure to sell players and raise millions before that date.

In the meantime, Ashworth has written to Premier League chief Masters on behalf of his constituents for further clarity amid the 'opaque' process. In his letter, shared with his followers on social media, the MP indicates that he has already spoken with the MD this week, but requires a response to further queries. The letter in full is below...

 

Dear Richard,

I am writing to express my deep concern at the treatment of Leicester City Football Club in my constituency. I am writing on behalf of many constituents and fans from across the UK. The news that the Premier League has referred Leicester City FC to the independent commission for an alleged breach of the Profitability and Sustainability Rules has been met with anger and disbelief with fans in Leicester.

Many fans understandably consider this process to be opaque with the serious risk of a points deduction putting the club's future prospects into jeopardy. Moreover, fans tell me that they are totally unclear how these processes operate and are applied. I am grateful for you providing me with some details and appreciated the opportunity for a call on Friday, however there remain a number of questions which I hope you're able to answer as a matter of urgency.

Following the confirmation of disciplinary proceedings (and in some cases points deductions) for a number of clubs, is the Premier League embarking on any programme to better explain, and make more transparent its disciplinary and decision-making processes so fans can be reassured of fairness?

There are other clubs facing multiple charges of alleged breaches which remain unresolved, how is the Premier League working to speed up these decisions so the rules are applied as fairly and as consistently as possible?

Are you assured of the fact that the Premier League's disciplinary and sanctions regimes are being fairly and proportionately applied to all clubs?

Leicester City is not currently in the Premier League. What remit do you have to refer non-Premier League clubs to a disciplinary commission? We all want the Premier League to remain the best football competition in the world. Leicester City are an emblem of what the best of the Premier League can represent, but you will understand the process on which you embarked is likely to have a major impact on many of my constituents and they deserve answers.

I look forward to your response.

Jonathan Ashworth

It remains unclear what response, if any, Ashworth has so far received from the Premier League chief.

[davieG]

https://www.footballinsider247.com/leicester-city-have-decided-to-fight-the-premier-league-its-a-game-changer-says-kieran-maguire/

 

Leicester City have decided to ‘fight’ the Premier League – it’s a ‘game-changer’, says Kieran Maguire


Sat 23 March 2024 12:12, UK
Updated Sat 23 March 2024 14:18, UK
Leicester City have decided to ‘fight’ the Premier League after being charged with Profit and Sustainability Rules breaches.

That is the view of finance expert Kieran Maguire, who exclusively told Football Insider that this development is a “game changer for the history of football”.

The Foxes announced on Friday (22 March) that they have issued legal proceedings against both the EFL and the Premier League after they were charged with breaching financial regulations.

The EFL have placed Leicester under a registration embargo but the Foxes have disputed the punishment with a quarter of the 2023-24 accounting period still remaining.

If found guilty by an independent commission, Leicester could face a points deduction or a major fine depending on if they are promoted to the Premier League this season.

Leicester City will change ‘history of football’ with Premier League legal battle
Maguire explained that Leicester are “very unhappy” with the charges and have therefore decided to go head-to-head with the Premier League.

“Leicester City’s decision to start proceedings against both the Premier League and the EFL is a game-changer as far as the history of football is concerned,” Maguire told Football Insider’s Sean Fisher.

“Clearly, the club is very unhappy with the way that the two bodies have charged and made proceedings against themselves.

Join the Football Insider WhatsApp channel to get all our exclusives and the breaking transfer news FIRST.
“Therefore, Leicester have now decided to fight back as best they can.“

[davieG]

https://www.leicestermercury.co.uk/sport/football/football-news/leicester-city-answer-down-supporters-9185459

 

Leicester City have to answer let-down supporters after FFP charge sets up 'scary' future
Latest Leicester City news as the 'feel good' factor from this season almost vanishes with the recent FFP allegations

OPINION
ByJosh HollandFootball Writer
06:00, 24 MAR 2024

"This responsibility that I continue to live is one of the greatest responsibilities in my life and I will continue to put everything into it – my passion, that of my family and the entire King Power community."

 

Those were the words Leicester City owner Aiyawatt Srivaddhanaprabha wrote in his message to supporters following last season's relegation. Since then, things had been much rosier because of the decisions from the hierarchy, but that optimism came to a sudden halt this week.

On Thursday, the Premier League referred the club to an independent commission for an alleged breach of Profitability & Sustainability Rules (PSR) and failure to submit their financial accounts to the league. Less than 24 hours later, Leicester were placed under a player registration embargo by the EFL.

 

The club have come out fighting, saying they have issued legal proceedings against the Premier League and EFL. For some, the defensive nature of the statement released shortly after 4pm on Friday was praised, almost to say, 'You're defending your honour, well done guys'.

But in reality, a large proportion of the fanbase is tired. Just from scanning through social media, reading fan forums and speaking to like-minded supporters of the club in the last 24 hours - it does seem any trust between fans and the club has gone.

How have Leicester gone from being viewed as one of the best-run clubs in England to this? There are multiple reasons behind this downfall but the simple fact of the matter is that the people who make the key decisions at the football club have simply got many of them wrong.

Last year, the club announced a pre-tax loss of £92.5m for the year up to May 2022 - an increase of over £60m compared to the previous year. In the financial accounts, the club admitted that the decision not to sell a big first-team player in the summer of 2021, whilst continuing to improve the team, was the reason behind the large deficit.

Between 2016-2020, Leicester raised £255m through selling one of their best players each summer (N'Golo Kante, Danny Drinkwater, Riyad Mahrez, Harry Maguire and Ben Chilwell). The club always spent money knowing they had a hefty fee arriving from a buying club, but 2021 was different.

Only Rachid Ghezzal, Filip Benkovic, Matty James, Sam Hughes and Christian Fuchs left. Patson Daka, Boubakary Soumare, Ademola Lookman, Jannik Vestergaard and Ryan Bertrand all arrived.

That season as a whole, apart from some memorable European nights, was a disaster. Leicester finished eighth, missing out on European football, and suffered an embarrassing defeat to Nottingham Forest in the FA Cup.

Last year's relegation from the Premier League was another level. The feeling that the club and players felt like they were 'too good to go down' came back to haunt them as their fate was sealed in May. And despite a list of decisions from the club playing a big part in the drop, nothing changed.

January's fiasco in the transfer window didn't go down well. At the time, we had no idea of what was to come. City are now looking at being charged by both the Premier League and EFL. Who was the last club to do that?

James Maddison of Leicester City and teammates dejected after Leicester City are relegated from the Premier League after the Premier League match between Leicester City and West Ham United at The King Power Stadium on May 28, 2023 in Leicester, United Kingdom.
Leicester City suffered a surprise relegation from the Premier League in May (Image: James Williamson)
Anger, disappointment and loss of trust are all feelings I, like thousands, have suffered in the past few weeks as we look for someone to blame. Without seeing the club's latest financial accounts and hearing from those above, it's impossible to know the severity of the issues.

However, the fact that the long-term future of the club is in jeopardy is scary and almost unspeakable. If Leicester are not promoted, what's stopping them from becoming the next Portsmouth? Coventry? Reading? We've seen clubs who fall down the EFL have struggled to return.

And even if we do go up to the top-flight, key players will have to be sold to avoid any further breaches. No one enjoys getting battered every week. What is Enzo Maresca to do?

All this falls into the same motion. How has this happened? The lack of transparency has killed any remaining trust in those running the club. The constant errors made in the short term continue to leave fans in the dark over the long-term future of the club.

Leicester City fans must be heard. The owners need to give them answers. The time for unity is now.

[davieG]

https://www.dailymail.co.uk/sport/football/article-13231749/Leicesters-legal-action-against-Premier-League-EFL-sparks-anger-rival-clubs-convinced-Foxes-stalling-stop-potential-six-point-deduction-derailing-promotion-bid-season.html

 

Leicester's legal action against the Premier League and EFL sparks anger with rival clubs convinced the Foxes are stalling to stop potential six-point deduction from derailing their promotion bid this season
Leicester started legal proceedings after being charged with financial breaches 
The club are facing a six-point deduction with rivals accusing them of delaying

By MATT HUGHES

PUBLISHED: 22:30, 23 March 2024 | UPDATED: 22:48, 23 March 2024

Leicester's legal action against the Premier League and EFL has provoked anger at other clubs who are convinced it is a stalling tactic to prevent them being docked points this season. 

The Championship club announced they had launched 'urgent legal proceedings' on Friday after being charged with breaching Profit and Sustainability Rules, which has left them facing a six-point deduction.

The Premier League are understood to have been considering pursuing an expedited hearing to ensure the matter is resolved this season, but that will no longer be possible given Leicester's legal challenge. 

While the timing of PSR cases is dictated by the Independent Commission appointed to hear them the Premier League have the power to push for a fast-track process and were eager to do so to preserve the integrity of the Championship promotion race.

Leicester's rivals are convinced that the legal action is a delaying tactic to avoid the matter derailing their promotion bid, with Enzo Maresca's side level on points with Championship leaders Leeds and a point ahead of third-placed Ipswich. 

Leicester's legal action against the Premier League and EFL has provoked anger at other clubs
 

Sources with knowledge of the case have told Mail Sport that Leicester's breach is 'significant,' which based on previous PSR hearings would trigger a six-point sanction, while the club's combative approach means it would not be reduced on the basis of their co-operation.

Leicester's lawyers succeed in blocking the EFL's attempts to impose a business plan on them earlier this season with the club arguing they had no jurisdiction as they were in the Premier League at the time of their overspending.

[davieG]

https://uk.sports.yahoo.com/news/contradiction-heart-leicester-case-premier-093143498.html?guccounter=1&guce_referrer=aHR0cHM6Ly9jLm5ld3Nub3cuY28udWsv&guce_referrer_sig=AQAAAHXSsls-xO-4OKZrOK5lwGh9JGE-UT07P0p2wQOI8rJBuZWDaws60PQ2bMhRIN-3QfHD-xs5VvPTjQRtsAraL01iacxO42_FFqvJSHoIcyNRjt5-62vR4S5cK-HMsFNqR6RJ8v-kgv_mnSvQr0j50xU5Q-LhoWGXgAYrlw2yHglr

 

The contradiction at the heart of Leicester’s case with the Premier League
Richard Jolly
Mon, 25 March 2024 at 9:31 am GMT·5-min read

The contradiction at the heart of Leicester’s case with the Premier League

Leicester City already held a unique status with both the Premier League and the EFL. Now they may have another. The only club to win each of English football’s top three divisions in the 21st century – champions of League One; Manchester United, Liverpool and Arsenal may never sing that – then announced plans to take legal action against both the Premier League and the EFL.

The feelgood success story has become an emblematic failure in an age of suddenly greater regulation and a dramatic recourse to the lawyers. Attention has shifted from Jamie Vardy’s predilection for vodka and Red Bulls to Nick De Marco KC’s capacity to win court cases. Leicester were the 5000-1 shots who won the title. They presumably think the odds are slightly better when they take on the governing bodies.

There may be a contradiction in their case. Trying to argue they are not subject to the Premier League’s jurisdiction presumably brings them into the EFL’s remit. One way or another, the accusation is that Leicester have failed Financial Fair Play; in one division or another, this season or next, it should bring a points deduction. Which, in turn, either further imperils their chances of promotion or gives them an added obstacle to stay up next season.

But it is also revealing in various other respects. When Everton were the trailblazers in being charged for their breach of Profitability and Sustainability Rules (PSR), there was talk of other clubs suing them; if the accusation was that Everton cheated to get an advantage, that looks ridiculous when they finished 17th last season and the clubs in 16th (Nottingham Forest) and 18th (Leicester) have their own breaches.

 

Another is that all three suffered on the balance sheet for their underachievement. Budgeting to finish far higher in the Premier League than they did – somehow Everton factored in a sixth-place finish in 2021-22 and trailed in 16th – brings far less prize money and a hole in the accounts ledger. Leicester had more reasons to imagine themselves in the upper echelons of the table but went from five consecutive top-half finishes, two of them in fifth, to 18th in 2022-23.

It is notable, too, that Covid upended the footballing economy. Clubs were permitted to write off Covid losses in their accounts – and Everton’s felt suspiciously large – without them counting towards FFP calculations. But the collapse of transfer fees, especially in other leagues, reduced the market to sell players; it also led to a knock-on effect by restricting the spending power of Premier League rivals who might have otherwise sold well to Europe to finance their own buying.

Leicester had a reputation as fine traders, but they posted a record £92.5m loss for 2021-22, a rare year without a significant sale. In previous summers, players such as Ben Chilwell, Harry Maguire and Riyad Mahrez had brought in windfalls. That had come to feel part of the business plan, yet it can illustrate the precarious position clubs find themselves in: even the well-run are only a few poor decisions away from being plunged into trouble and Leicester made more than a few. Nevertheless, they did well to get £70m from Chelsea for the ever-injured Wesley Fofana in 2022; they then sold James Maddison, Harvey Barnes and Timothy Castagne the following year, after relegation, even though too many of the others who left did so on free transfers.

But a relatively sure touch in the transfer market started to desert them. There were other signings they could not sell for a profit – Danny Ward, Ayoze Perez and Rachid Ghezzal in 2018, Dennis Praet in 2019 – but two windows of recruitment came at a particular cost. The 2021 outlay on Patson Daka, Boubakary Soumare and Jannik Vestergaard, none either a footballing or financial success, was compounded by the January 2023 outlay on Harry Souttar and Victor Kristiansen.

In the process, Leicester contrived to get the worst of both worlds: spending some £30m to compound their FFP issues and yet still getting relegated. It also illustrates that they should have done more to try and cash in on Youri Tielemans, Caglar Soyuncu and Perez while they still could and, while the scale of Leicester’s breach is not yet known, the recurring theme between them, Everton and Forest is that much of it was avoidable: without accumulating so many players, with fewer bad signings, with more sales, the figures may be more presentable.

But it is also a hugely damning indictment of Brendan Rodgers, even if the cost of sacking him may be a further factor in taking Leicester over the FFP limit. Leicester’s former manager had a tendency to voice his complaints about the board’s reluctance to spend in the summer of 2022; now it is apparent that was based on sounder financial logic than his own.

Rodgers had excelled before. Last season, he underachieved with what has proved an unaffordable squad; it would be instructive to know if Leicester’s wage bill was higher than Newcastle’s, as they finished fourth; certainly before bonuses were triggered on Tyneside anyway.

The counter-argument is that Leicester suffered for their success. They were a club without big-six commercial or matchday income but, as they finished fifth twice and won the FA Cup, they had players who deserved to be paid accordingly. They were damned if they did, damned if they didn’t.

Viewed that way, Leicester were punished for their ambition. Certainly it put them in a position where they had less margin for error. But err Leicester did, both in plummeting into the Championship and with transfer-market missteps. Now they find themselves under a transfer embargo, facing a loss of points, their future threatened.

Saying they wanted charges “proportionately determined” risked accusations of hypocrisy, given that threats to take legal action against the Premier League and the Football League strike some as disproportionate. But what can be said is that the landscape has been transformed since Leicester won the Championship in 2014 – while breaching Financial Fair Play.

[davieG]

https://www.leicestermercury.co.uk/sport/football/football-news/who-nick-de-marco-lionel-9188270

 

Who is Nick De Marco? The 'Lionel Messi of sports barristers' representing Leicester City
The lawyer has already successfully represented City before in their dispute with the EFL over the winter, and his services have been employed again for their legal proceedings

ByJordan Blackwell
16:20, 25 MAR 2024

The name Nick De Marco is becoming a familiar one both in the world of English football and in the world of Leicester City.

The sports barrister has represented more than 45 clubs across the Premier League and EFL, and one of his latest assignments is to help City in their battle with the governing bodies. On Friday, having been charged with an alleged breach of Profit and Sustainability Rules by the Premier League and having been placed under a transfer embargo by the EFL, City announced they were issuing legal proceedings against both.

De Marco certainly has experience in representing clubs in their fights with the Premier League and EFL, and is successful. He has been described by football finance expert Kieran Maguire as the “football law version of Lionel Messi”.

 

 

 

In 2020, De Marco helped Sheffield Wednesday in their battle with the EFL over PSR, first managing to defer a points deduction, then getting it reduced from 12 points to six. In the same year, he also helped Stevenage avoid a points deduction, and managed the same with Derby County a year later. He then worked alongside Newcastle and Mike Ashley to help in their dispute with the Premier League over the Saudi takeover of the club.

De Marco’s services were sought by a number of clubs to look into potential compensation claims against Everton after they were charged by the Premier League over PSR breaches. He then represented Nottingham Forest after charges were brought against them, with City’s neighbours receiving just a four-point deduction earlier this month.

Even before the current cases City are set to go through, De Marco has already been successful in defending the club. They won their appeal against the EFL in January when the governing body tried to subject the club to a business plan.

City have said in their statements that they fighting "for the right of all clubs to pursue their ambitions" and in De Marco they have a lawyer who has spoken out against the nature of the regulations. He told the Sports Law Podcast this year: "Financial Fair Play rules in football are not justified on the basis of competitive balance and there's a very strong argument that they are antithetical too because what they do is they allow you to spend more if you earn more so they protect the status quo."

To figuratively suggest De Marco wrote the book on football law would be underplaying it. He literally wrote the book, with the 1,000-page ‘Football and the Law’ published in 2022.

[davieG]

https://www.leicestermercury.co.uk/sport/football/football-news/five-key-dates-leicester-citys-9190686

 

Five key dates in Leicester City's PSR cases that will clarify club's fate
The process has only just started with City alleged to have breached Profitability and Sustainability regulations for the three-year cycle to 22-23, and with the club at risk of doing so again this term

ByJordan Blackwell
16:10, 26 MAR 2024

Leicester City have been referred by the Premier League to an independent commission for an alleged breach of Profit and Sustainability rules and have been placed under a registration embargo by the EFL. So what now?

As with all matters of these kinds, patience will be needed for resolutions. Here’s a look at the key dates where progress will be made.

 

March 31

There should be news this week with City due to release their accounts for the 22-23 season before the month is over. Not only will the figures for last term give a greater indication of where City stand against the charge by the Premier League, it will give clarity over the battle they face to get their house in order to satisfy PSR rules for the three-year cycle ending with the current 23-24 campaign.

READ MORE: Stephy Mavididi tells Leicester City loanee to 'come back to us' amid potential summer transfer

READ MORE: Leicester have failed to harness FFP rage in bid to avoid disaster

There may not be full disclosure over PSR though. When Ipswich published their accounts last week, they included a PSR calculation, showing the expenditure on areas of the club that do not count towards the spending limits, such as investment into youth development, community schemes and women’s football. However, this is a rarity. Very few clubs publish such breakdowns.

 

May 4

The final day of the Championship season will be significant. If the battle for promotion remains as tight as it is now, City may host Blackburn needing victory to secure a top-two finish.

But also, that date should act as a cut-off point for City to receive any points deductions this season. The limited time before the end of the campaign means it’s extremely unlikely that City will receive a punishment that affects their promotion push, despite the Premier League’s aim to deal with cases in the season teams are charged.

A points deduction for City this season could be the difference between them finishing in the automatic promotion places and in the play-offs. Preparations for those play-off semi-finals, which begin on May 12, will begin as soon as the final whistle goes on the final day of the regular campaign. Plus, teams need to know before the game whether they need to play for a win or a draw to secure their aims.

To bring in a points deduction after that final game would jeopardise the competition. If City are to be punished this season, it won’t happen after May 4.

 

May 23

This date would be nine weeks after the Premier League charge against City. That is, so far, the quickest a case has been settled, with Nottingham Forest charged on January 15 and receiving a points deduction on March 18.

The Premier League’s Standard Directions for PSR cases prescribe a timeline for them to be heard. However, those rules don’t apply to City as a Championship club, as they were not introduced until this season. The Premier League said a timetable would be decided upon by the independent commission.

There is no word yet on what that timetable would be, but it seems unlikely that City’s case will be settled inside nine weeks. Forest’s case was concluded quickly because they fully co-operated with the commission, and even then, they have since announced they will be appealing anyway.

The Standard Directions, which again City don't fall under, state that every case should be heard within 12 weeks. That would mean a resolution by June 13. However, that falls outside of the dates set by the Premier League for resolutions. They want decisions on cases by May 24 at the latest, and appeals to have been heard by June 8.

 

June ??

No official date has been named for the opening of the summer transfer window, but when it is, it will be a significant one for City. To avoid a potential breach of PSR rules for the three-year cycle to the end of the current campaign, they could need to sell players before the end of the financial year.

That means that as soon as the transfer window opens, they need to be getting down to business. Negotiations can and do take place before the official opening of the window, but deals cannot go through until that date arrives. City need any sales to be wrapped up in June so that they go into this season’s accounts.

 

June 30

The final day of June is the final day of the accounts. However many sales City might need to satisfy PSR for the current campaign, they need to be wrapped up by June 30.

From there, it’s a bit of a mystery. City enter a new cycle from July 1, one that does not include the campaign in which they lost £92m. That should mean they are less at risk of breaching PSR going forward, meaning there should be more leeway for transfer business, but if they don’t get promoted, they could still be under an EFL embargo, with no date set for when City can resume registrations of players.

[davieG]

'Just about every club is living in fear of making an accounting error'
published at 10:38
10:38
Pat Nevin
Former footballer and presenter

Premier League badge

The Premier League appears desperate to destroy its position as the go-to league.

Who needs competition from Serie A and La Liga when you have overcomplicated, Byzantine financial rules? Just about every club is living in fear of making an accounting error that could lead to docked points.

Nottingham Forest suffered a four-point deduction from what was a technical breach, simply because they were trying to be competitive after years away from the top table.

Everton were dealt a heftier blow and there may be more to come.

Suddenly the lawyers feel the need to go after Leicester City, who aren't in the league but could face a knockout blow if they have the audacity to get promoted.

Manchester City and Chelsea fans must be quaking in case they are next to fall foul of the financial hit men.

The rules are overcomplicated and the implementation is bizarre.

It is perfectly possible we will not know who has been relegated until rulings have been challenged.

The game is being run by people who have no love or knowledge of the sport, specifically that the 'nuclear option' of points deductions should only ever be used in extraordinary, exceptional and unusual circumstances.

Pat Nevin was writing for the 

[davieG]

A decent summing up.

 

https://talksport.com/football/1808306/leicester-championship-psr-charges-promotion/

 

Leicester City are battling a three-part war – and risk losing every single one
Charlie Carmichael

As we approach eight years since Leicester’s Premier League miracle, the club now finds itself in the midst of a crisis.

Good Friday’s defeat to Bristol City marked a fifth loss in eight, leaving The Foxes outside of the Championship’s automatic promotion places, having previously held a 17-point lead earlier in the season.

 

Leicester are on a slippery slope
For any club, squandering an immediate return to the Premier League would be a huge concern, but for Leicester, it could prove the difference between operational stability and a wildly uncertain future.

That’s because their on-pitch struggles are exaggerated tenfold by the impending threat of sanctions, levelled at the club by both the Premier League and EFL, following its alleged breaches of profit and sustainability regulations.

And so, Leicester find themselves battling on three fronts: on the pitch, off the pitch, and in the stands.

 

The Board vs. The League(s)
Cast your mind back to the summer of 2021. Leicester were coming off the back of two consecutive fifth-placed finishes and ambitions were at an all-time high.

Up to this point, the club’s finances had adhered to a strict business model: sell one star asset each summer, and reinvest the funds appropriately across specific areas of the club.

Some were like-for-like – with N’Golo Kanté eventually being replaced by Wilfred Ndidi – while others were more strategic, like leveraging the sale of Harry Maguire to fund the club’s brand new, first-in-class training facility.

2021 brought with it a change in mindset, where Leicester took the proverbial leap from an underdog mentality to wanting to establish themselves as an elite club. And in their eyes, that meant spending money like an elite club.

Leicester have an existential crisis on their hands
The player sale drawbridge was pulled up, and in came the likes of Patson Daka, Boubakary Soumaré, and Jannik Vestergaard for big fees and wages. This was Leicester’s statement of intent: we’ve rubbed shoulders with the big boys for some time, and now, we’re here to stay.

That dream was swiftly shattered by an eighth-placed finish and relegation the season after. The club crashed into the second division with the Premier League's seventh-highest wage bill.

Whether you saw the board’s outlay as ambitious management or financial negligence is subjective, but the club had gambled, spending beyond its means to keep pace with others whose revenue dwarfed their’s, and ultimately, lost out big time.

The true financial mire remained shrouded in a layer of mystery for supporters, who were largely kept in the dark as to the extent of its precariousness. The sales of James Maddison and Harvey Barnes were followed by reinvestment into the squad, which to most suggested the club was stable and complying with the relevant processes.

This faith proved to be unfounded. Leicester entered into a behind-the-scenes tug of war with the EFL, who tried to get the club to submit a business plan, which would demonstrate how it planned to align itself with financial fair play.

Leicester refused, exploiting something of a loophole in the rules by arguing that, because it was a Premier League club for all three seasons in question, the EFL’s demands were outside of the league’s jurisdiction. 

Legal proceedings followed and Leicester duly won their argument over the technicality, but it set the wheels in motion for both the EFL and Premier League to hone in on Leicester as a red-hot target.

The club has since been charged with allegedly breaching PSR, and been placed under a player registration embargo, effectively meaning it can’t sign new players or renew expiring contracts, of which there are plenty come this summer.

Maresca's men could be in real trouble if they don't get promoted

And so, Leicester find themselves embroiled in a gruelling legal battle against both the Premier League and the EFL, desperately trying to argue a case that ostensibly looks illogical.

It’s broadly accepted by everyone outside of the club that Leicester have overspent, and haven’t had anywhere near the required incoming revenue to offset it. Commercial deals, merchandise and ticket sales, and player trading are all well behind where they’d need to be.

A points deduction feels inevitable – although Leicester seem to have dragged their heels enough to ensure this will come next season due to time constraints – regardless of what division the club finds itself in.

A place in the Premier League would mean a tasty slice of television money, perhaps allowing Leicester to retain its star assets, and hopefully not falling foul of PSR by such an alarming margin. 

A place in the Championship… well, that could mean a firesale of players for cut-price fees, an embargo to prevent any replacements, and a hefty points deduction to kick the season off. 

It paints the picture of promotion being a necessity.

 

The Team vs. Promotion
So what about promotion? The Foxes looked to be cruising back to the Premier League in second gear around Christmas time. Boasting a 17-point lead in the automatic promotion race and a playing style befitting of a top flight side.
Manager Enzo Maresca has been lauded since his arrival. Not only for the results he’s brought, but also the way he’s been able to transform the squad from looking utterly rudderless under Brendan Rodgers to reinvigorated and hungry to bounce straight back.

His tactics have been called into question at times – opting for a methodical, possession-based style that relies heavily on patience and technique – but by and large, once the wins started flooding in, fans hopped aboard the bandwagon.

All that has changed since the turn of the year. Off-pitch drama appears to have infiltrated the players’ mindset, and Championship opponents are beginning to develop a blueprint of how to nullify this Leicester side.

The lack of signings in January certainly didn’t help matters, and injuries to key players such as Ricardo Pereira and Ndidi have made Maresca’s task more problematic, but week by week, that 17-point lead was slowly chipped away.

This level of self-implosion is nothing new to Leicester. The aforementioned consecutive fifth-placed finishes both came about after spending the vast majority of the season comfortably inside the top four, while last year’s journey to relegation was punctuated by the media and fans alike playing down the warning signs, stating the club was ‘far too good to go down’.

Now those same mental frailties are coming to the surface again, with the players hopelessly floundering, all while watching promotion rivals Leeds and Ipswich show a level of grit and resilience seldom seen at the King Power Stadium in recent weeks.

Maresca is not above this criticism, either. Those same detractors from earlier in the season are back, lambasting his footballing philosophy, and are joined by more and more fans each passing week.

In an idyllic environment, with limited distractions and deep pockets to sign players with unrivalled technique, this style of play is hard to argue against. But belligerently overlooking players outside of the starting XI, persisting with a system that opponents are increasingly negating, and consistently pointing to one or two chances being created as proof of success is wearing thin for some.

Leicester looked all-but certain to win promotion a matter of weeks ago
All of this adds up to a group of players who look bereft of belief and a manager who won’t compromise his tactics, competing in a campaign that will require a record points tally to achieve automatic promotion.

As of right now, it’s not looking great. 

 

The Club vs. The Fans
The battle with both leagues and the one for promotion are, by their very nature, starting to accentuate a third – a rift with the club’s own fans.

Leicester have long been held up as a model of how all other smaller clubs should operate, balancing ambition with prudence, placing emphasis on the academy and recruitment, and channelling an underdog spirit that echoes throughout the stands.

How the club is perceived externally has always been important to the ownership, whether it’s as big as defying the odds to win Premier Leagues and FA Cups, or something as novel as gifting free donuts to everyone in attendance.

And the ownership has been overwhelmingly celebrated down the years by the fanbase, who to this day belt out ‘Vichai had a dream’ on matchdays in recognition of their late owner who, as the song goes, allowed them to sing that they were indeed the champions of England.

As time has passed, though, and the stewardship of the club has fallen to Vichai’s son, Khun Top, there have been murmurs of quiet discontent. For the most part, these haven’t been aimed towards Top, but rather his right-hand man, Director of Football Jon Rudkin.

It is Rudkin who is perceived to be the person overseeing so much of the operational mismanagement, whether that’s acquiring underwhelming signings on astronomical wages, failing to offload middle-of-the road squad players, or sticking by Rodgers through thick and thin, only to then relieve him of his duties beyond the point of return.

The only criticism levelled at Top thus far has been his apparent blind loyalty to those around him. The club conducted an internal investigation into the issues that led to relegation last summer, which from the outside looking in, appears to have changed very little in regards to how Leicester is being run.

The reason most of this is assumed and not known, is down to a distinct lack of transparency from the club, who have done very little to communicate with fans in recent years.

The above, combined with a plethora of contentious decisions surrounding the matchday atmosphere and ticket sales – in addition to a serious code of conduct breach which led to the dismissal of Women’s manager, Willie Kirk, over an alleged relationship with a player – has slowly started to erode the trust between the club and its supporters.

Some fans have now begun calling for changes to be made at the top of the club, and disgruntled voices across sites like The Fosse Way and podcasts like The Big Strong Leicester Boys are only growing louder.

The aftermath of Good Friday’s defeat to Bristol City was met by a mixed reception in the away end at Ashton Gate, with some directing their anger towards the players and manager, while others continued to make their feelings of discontent towards the board be known.

Whichever way Leicester City looks at it, they find themselves at odds with two different leagues, in an ever-harder race for promotion, and clinging onto a breaking bond with sections of their own fanbase.

Winning promotion won’t solve everything, but failure to do so could well see the club lose its battle on all three fronts. 

[davieG]

https://www.leicestermercury.co.uk/sport/football/football-news/leicester-city-chairman-addresses-ffp-9199288

 

Leicester City chairman addresses FFP charges and gives financial assurances
Aiyawatt Srivaddhanaprabha has written of the Premier League's Profit and Sustainability charge against the club in his programme notes for the fixture with Norwich

SPORT
ByJordan Blackwell
11:30, 1 APR 2024

Leicester City’s financial future is “entirely secure”, chairman Aiyawatt ‘Top’ Srivaddhanaprabha has insisted in a message addressing the charges against the club.

City have been charged by the Premier League over an alleged breach of Profit and Sustainability rules and been placed under a transfer embargo by the EFL. The club responded strongly to both, announcing they would take out legal proceedings against both bodies.

In his programme notes ahead of Monday’s fixture against Norwich, Top has sought to assure supporters concerned by the charges by insisting King Power are still supporting City and that off-field matters do not impact on the financial security of the club. He also reiterated the club’s stance over the charges, that they are seeking to ensure they are “properly and proportionately determined.”

 

His message read: “Off the field, recent weeks have been challenging for everyone at the club and that includes our supporters, some of whom will be understandably concerned about the PSR charges that have been brought against us. First and foremost, while we navigate this regulatory matter, I want fans to be assured that the club’s financial position is entirely secure and that my personal support for Leicester City, and that of King Power, remains as strong as it has ever been.

“Thank you to everyone for the support you continue to put behind the team in this period as we seek to maintain focus on the pursuit of our primary goal this season. It has been, and continues to be, deeply appreciated.

“We do not underestimate the significance of recent developments, or the importance of our supporters having a fuller understanding of the position of their club. This needs to be balanced with respect for current confidentialities involved and the need to ensure the club’s position and interests are most strongly represented in the right setting.

“We will always respect our obligations to the rules of the game and governing bodies, whose responsibility it is to enforce them. This includes ensuring that any charges against the club are properly and proportionately determined, in accordance with the applicable rules, by the right bodies, at the right time. Please be assured that we will continue to act, as we always have, in the best interest of the club and its supporters.”

City's accounts for the 22-23 season are due to be published this week. They will help to clarify the club's financial situation and PSR predicament, both for the three-year cycle ending last summer and the current three-year cycle.

[davieG]

https://www.footballinsider247.com/leeds-united-spearhead-push-for-leicester-city-punishment-as-documents-uncovered-sources/

 

Leeds United spearhead push for Leicester City punishment as documents uncovered – sources

Sean Fisher

Thu 4 April 2024 19:00, UK

Leeds United are at the forefront of a group of Championship clubs pushing for Leicester City to face sanctions, sources have told Football Insider.

Leicester have been charged for a breach of Profit and Sustainability Rules after exceeding their allowable losses during their final season in the top flight.

The Foxes published their 2022-23 accounts on Tuesday (2 April) revealing an overall loss of close to £90million.

It takes their total losses over the last three years to £215million after also suffering heavy losses in 2020-21 and 2021-22.

Clubs in the Championship are now pushing for Leicester to face sanctions with senior figures complaining that their promotion charge is formed on the foundation of an unfair advantage.

Leeds United join group pushing for Leicester sanctions

It is understood that Leeds are spearheading the complaints with board members at Elland Road furious at the enormity of Leicester’s losses.

As revealed by Football Insider, Leicester City’s points deduction is “only a matter of time” after their accounts revealed the scale of their financial crisis.

Enzo Maresca’s side are currently third in the Championship but boast a game in hand over promotion rivals Leeds and Ipswich Town.

Join the Football Insider WhatsApp channel to get all our exclusives and the breaking transfer news FIRST.

Had Leicester remained in the Premier League, any sanctions from their PSR charge would have been applied this season.

Instead, Leicester are expected to start next season on minus points under the assumption that they will be given a points deduction for their PSR breach.

[davieG]

https://www.lcfc.com/news/3963781/lcfc-statement?lang=en

 

LCFC today releases the following statement.
LCFC notes the publication today of the decision of the League Arbitration Panel (LAP).

As the LAP decision records, the EFL wrote to the Premier League on 20 March 2024 (the day before the PL brought its PSR complaint against LCFC), stating that the EFL would ensure that any sanction imposed by a Premier League Disciplinary Commission against LCFC would take effect while LCFC was in the Championship, whilst also noting that any points deduction sought by the Premier League would need to be applied before 4 May 2024.

However, after the Club challenged the EFL’s intention to act outside of its rules, the EFL subsequently unconditionally accepted that it does not in fact have any power, from any source, to impose a points deduction in the EFL which has been ordered by a Premier League Disciplinary Commission in relation to PSR.

LCFC continues to try and co-operate constructively with both the Premier League and the EFL to reach a lawful resolution of any issues relating to PSR, in accordance with our consistent commitment that any charges against the Club should be properly and proportionately determined, in accordance with the applicable rules, by the right bodies, and at the right time