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Leeds may sue Leicester

Leeds United are considering taking legal action against Leicester City in the wake of Burnley’s landmark compensation victory over Everton.

Everton were ordered to pay £40m after Burnley argued they would have avoided relegation from the Premier League in 2022 had the Merseyside club’s six-point punishment for breaking Profitability and Sustainability Rules (PSR) been applied during the season of the breach and not in 2023-24. 

Last week’s decision, which was handed down by an independent disciplinary commission and is the subject of an appeal by Everton, was deemed to be a watershed moment that could open the door to further action between rival clubs.

Leeds are now exploring how Leicester’s PSR issues affected two of their own seasons. The first is 2022-23, when both Leeds and Leicester were relegated, and then 2023-24, when Leicester gained automatic promotion back to the top flight and Leeds lost in the play-offs. 

In September 2024, Leicester won an appeal against an alleged breach of PSR regulations for the 2022-23 season when arguing that the Premier League had acted outside of its jurisdiction. 

Everton have appointed the law firm Slaughter and May to handle their appeal after the ruling that has sent shockwaves through football. The outcome will be closely monitored by Manchester City and their Premier League rivals.

A number of top flight sides are believed to have instructed legal counsel to sue City for compensation should they be found guilty of breaching Premier League rules in the 115 charges levelled against the club. City have denied wrongdoing.

Leeds reached an out-of-court settlement last year with Everton regarding the Merseyside outfit’s breach. The Elland Road club were not relegated in 2022, but finished one place and one point behind Everton. The financial package was undisclosed, but a merit payment was worth around £2million. On that occasion, Leeds did not believe their case was legally strong enough to pursue.

 

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