Leicester City v CFRU

Decision Details

The Club Financial Review Panel (CFRP) have issued a decision on the matter between Leicester Football Club (LCFC) and the Club Financial Reporting Unit (CFRU). 

The matter was referred to the CFRP by LCFC, who challenged the validity of the CFRU’s decision and requested a CFRU Decision Review. The question at hand was whether the CFRU was entitled to issue an opinion under the Profit and Sustainability Rules (P&S) requiring LCFC to submit a business plan pursuant to Rule 16.21.  

LCFC submitted that the definition of “T”, the Accounting Reference Period, which would determine whether the CFRU had power to issue a determination regarding LCFC, referred to the 2023/24 season and, therefore, ended on 30 June 2024. LCFC argued that as the Club was relegated to the Championship at the conclusion of the 2022/23 season, in March 2023 it was a Premier League Club and was not within the meaning of Regulation 16.2 at that time. Consequently, LCFC argued that Rule 2.9 was not applicable to it during the 2023/24 season and could only be applied to it from March 2024. 

The CFRU argued that “T” was associated with the 2022/23 season, as it referred to LCFC’s Accounting Reference Period ending in 2023. Consequently, the CFRU argued that Rule 2.9 applied to LCFC, and it was necessary to interpret the Regulations as such in order to achieve the underlying purpose of Rules 2.2 to 2.9. 

After reviewing the submissions of the parties, the CFRP determined that “T” in this case was LCFC’s Accounting Reference Period associated with the 2023/24 season and therefore ending 30 June 2024 and that, consequently, the CFRU did not have power in November 2023 to issue a determination under Rule 2.9 in respect of LCFC, nor to require LCFC to submit a business plan pursuant to Rule 16.21. 

A copy of the full decision of the CFRP can be accessed via the related documents tab on the right-hand side.

Further details about the CFRP can be found by clicking here.