Ipswich Town's Premier League rivals Leicester City have avoided a potential points deduction after winning a fight over an alleged breach of profit and sustainability rules.

An appeal board found that Leicester's accounting period - after it was claimed the club exceeded the permitted £105million threshold over three seasons - ended on June 30, 2023, a month and two days after the Foxes were relegated from the top flight and were no longer a member of the top tier.

That meant the Premier League didn't have jurisdiction to punish the Foxes, as they were a Championship club.

The Premier League said the appeal board's decision "effectively means that, despite the club being a member of the (Premier) League from seasons 2019-20 to 2022-23, the league cannot take action against the club for exceeding the relevant PSR threshold in respect of the associated accounting periods".

It added that the verdict "will have created a situation where any club exceeding the PSR threshold could avoid accountability in these specific circumstances".

Leicester, who could have faced a points deduction had they been found to have breached financial rules, welcomed the decision, adding that the verdict "supports our consistently stated position that any action against the club should be pursued in accordance with the applicable rules" and "how they are actually written".

Steve Cooper's Leicester City have one point from their first three top tier games - but don't have to worry about losing points nowSteve Cooper's Leicester City have one point from their first three top tier games - but don't have to worry about losing points now (Image: PA)

The Foxes said: "Leicester City welcomes the appeal board's comprehensive decision, which supports our consistently stated position that any action against the club should be pursued in accordance with the applicable rules.

"To avoid any misunderstandings which may arise in light of the statement which has been issued by the Premier League in response to the appeal decision, Leicester City wishes to emphasise the finding of the appeal panel that, when considering the wording which is actually used in the Premier League rules (in accordance with established principles of English law) the club did not breach the Premier League PSRs for the assessment period ending 30 June 2023.

"In its decision, the appeal board (which was made of up a panel of three experienced, senior lawyers, two of whom are former Court of Appeal judges) identifies flaws in the drafting of the Premier League's rules.

"In challenging the Premier League's attempts to charge Leicester City, the club has simply sought to ensure (in the interests of providing consistency and certainty for all clubs) that the rules are applied based on how they are actually written."

Both Nottingham Forest and Everton were given points deductions last season for breaching PSR rules.

A statement from the Premier League read: "The Premier League is very disappointed with the appeal board's decision, and the limited reasons provided for it.

"In overturning the original commission's findings, the Premier League considers the appeal board's decision fails to take into account the purpose of the rules, all relevant parts of the PSRs and the need for effective enforcement of alleged breaches to ensure fairness among all clubs.

"If the appeal board is correct, its decision will have created a situation where any club exceeding the PSR threshold could avoid accountability in these specific circumstances. This is clearly not the intention of the rules.

"It is of critical importance that the Premier League is able to enforce its rules consistently to maintain the principle of fairness. The league will now consider what further action it can take to ensure this is the case."