Leicester City will avoid a points deduction in the 2024-25 Premier League season after winning their appeal against a decision for an alleged breach of Premier League Profitability and Sustainability (PSR) rules, the club announced on Tuesday.

The PSR rules forbid Premier League teams from surpassing a loss of 105 million pounds (about $137.7 million) over a three-season period. Leicester were relegated to the EFL Championship after the 2022-23 campaign.

"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, the club did not breach the Premier League PSRs for the assessment period ending 30 June 2023," the club said in a press release.

Back in March, the Premier League referred Leicester to an independent commission for breaching the PSR. The club challenged its jurisdiction to hear the case, but the commission dismissed their challenge. The Foxes didn’t give up and continued to appeal against the ruling. They refused to join Everton or Nottingham Forest to lose points for rule breaking in the Premier League, to which they returned this season.

"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," Leicester said in a statement on Tuesday.

The Premier League said it was both surprised and disappointed at the result. "The Appeal Board's decision effectively means that, despite the club being a member of the 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," the English top league said in statement.