Leicester’s appeal against the Premier League’s Profit and Sustainability charge has been rejected by an independent commission.
The commission has ruled the top flight can punish the Foxes for an alleged breach for the three seasons leading up to 2022-23 after they were charged in March.
Leicester appealed against the charge as they were in the English Football League (EFL) at the time it was issued and felt the Premier League had no jurisdiction, having been relegated in 2023, but the commission has ruled English football’s top flight can continue pursuing them.
Leicester are appealing against the latest ruling.
A statement said: “LCFC notes the publication today of the decision of the Premier League Commission. The Club is disappointed with the decision, which does not appear to reflect the wording of the Premier League’s Rules, and has lodged an appeal.”
The Premier League confirmed the appeal had been dismissed.
“An independent Commission has dismissed a challenge by Leicester City FC that it has no jurisdiction to consider an alleged breach of Profitability and Sustainability Rules (PSRs),” a statement read.
Leicester, who returned to the Premier League at the first attempt by winning the Championship last season, were charged in March for an alleged breach of the Premier League’s PSR rules.
At the time the club said they were “surprised” and “disappointed” by the timing of the Premier League’s actions, while they were not in the top flight.
The club said they would “defend” themselves “from any unlawful acts by the football authorities, should they seek to exercise jurisdiction where they cannot do so”.
Their latest accounts for the year ending 30 June, 2023 confirmed an £89.7m loss taking their total losses for their previous three Premier League campaigns to more than £215m.
The club will be able to claim ‘add backs’, such as money spent on football infrastructure, against that figure.
In the 12 months up to May 2022 they lost a club record £92.5m. A year earlier, in the season when they lifted the FA Cup for the first time, the club reported a pre-tax loss of £33.1m.
Top-flight rules allow clubs to make losses of £105m over a three-year period, or £35m per campaign, before facing sanctions.