An independent panel found the Premier League did not have the jurisdiction to punish the club.

The Premier League said it was “surprised and disappointed” by the panel’s decision.

Leicester said they had “simply sought to ensure that the rules are applied based on how they are actually written”.

The Foxes were charged by the Premier League for breaching spending rules. They appealed against this charge but an independent commission then ruled the top flight could take action.

Leicester then appealed against that decision – based on the fact they were in the English Football League (EFL) at the time the charge was issued – and the outcome was announced on Tuesday.

Under PSR rules, clubs cannot lose more than £105m over a three-season period.

The Premier League charges related to the three-year period to the end of the 2022-23 season.

But the club was relegated to the Championship at the end of that season and only filed its accounts once it ceased being a member of the Premier League.

Nottingham Forest and Everton both received points deductions last season after being found to have breached PSR rules.