Premier League confirm PSR change that closes off relegation 'loophole'

The has confirmed changes to the current financial rules in order to tighten any potential loopholes.

A new handbook has been published by the , and, as first spotted by financial expert Stefan Borson, it seems the wording around some areas of the profitability and sustainability rules (PSR) have been amended. The changes would have been made at a recent meeting between all 20 Premier League clubs.

One of the changes sees rule E.49 added, which states: “If a club is relegated from the league, that club shall, notwithstanding relegation, remain bound by Rules E.47 to E.86 as if it were still a club, until such a time as it has complied with all of its obligations relating to all its obligations to its last season as a club.”

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The change is most likely to relate to the ongoing case between Leicester City and the Premier League. Back in September last year, , with the ruling finding that the league had no jurisdiction over the club due to their relegation to the Championship before the end of the 2022/23 accounting period. The Premier League have since appealed against the decision, but are expected to lose that case.

The new rules cannot be applied retrospectively, meaning that Leicester cannot be punished for the 2022/23 accounting period under the new regulations.

A second tweak also provides more clarity on the cap of losses for a season that a team may have spent in the Championship. It adds: “The sum set out in Rule E.54 shall be reduced by £22m per season, for each of the three seasons prior to the current season during which a club was in membership of the Football League, up to a maximum deduction of £66m.”

teams are allowed a loss of £105 million over a three-year period. That allowed loss is however reduced dramatically to £41.5 million across the three year period for EFL clubs.