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Leeds open legal proceedings against Leicester City

Increasingly the most important people in any football club are not the accountants, but the lawyers.  A career as a sports lawyer offers good prospects and is more interesting than many branches of the legal profession.

Leeds United have opened legal proceedings and served a statement of claim against Leicester City after being denied automatic promotion in 2023-24, when the latter broke financial rules.   This follows Burnley’s recent successful action against Everton.

A statement of claim sets out why the claimant is taking action against a respondent. In this case, Leeds have included specific losses, but also requested an assessment of damages as a result of Leicester’s PSR breach. As it stands, the hearing is not set to take place until next summer.   It is always possible that it will be settled out of court.

Last month, it was revealed Everton had been ordered to pay Burnley £35m in compensation and interest. In 2021-22, the Lancashire club were relegated and have since successfully argued they would have stayed up if Everton had been sanctioned with a points deduction for their PSR breach.

Everton finished four points above Burnley to retain their Premier League status and ultimately received a six-point deduction for the 2021-22 breach in 2023-24. As a result of their relegation, Burnley missed out on significant income which rewards playing in the top flight. This includes the Premier League TV deal and commercial opportunities.

That case, while it does not set a binding precedent, has set a framework for other clubs in similar situations to follow. Leeds may argue they would have been automatically promoted in 2023-24 if Leicester had adhered to PSR rules.


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