Premier League side considering legal action against Leicester City after £40m dispute

Leeds United could seek compensation from Leicester City after Everton were told to pay almost £40m to Burnley

Premier League side Leeds United are considering taking legal action against Leicester City over their breach of Profitability and Sustainability Rules (PSR), according to reports.

The Times have reported that Leeds are exploring pursuing a case based on how the Foxes’ issues affected their fate in two seasons – the 2022/23 and 2023/24 campaigns.

In 2023, both teams were relegated from the Premier League to the Championship. A year later, the Foxes won the title and earned automatic promotion back to the top flight while Leeds lost in the play-off final.

Last season, City were deducted six points by the Premier League for breaking spending thresholds in the 2023/24 season. In 2024, the club successfully appealed an alleged breach of regulations for the 2022/23 season after arguing the league had acted outside of its jurisdiction.

Should a case be pursued by Leeds, Leicester’s breach would need to be seen on the balance of probabilities to have impacted the promotion hopes of Daniel Farke’s men. That season, City finished seven points above Leeds and lost both home and away.

Leeds’ consideration comes after Burnley secured a huge compensation win against Everton. The Toffees were ordered to pay close to £40million after it was argued that the Turf Moor outfit would have stayed in the Premier League in 2022 had a six-point punishment been handed to Everton during the season of the breach, rather than the following year.

The decision made by an independent disciplinary commission is subject of an appeal by Everton. But it has opened the door to more cases in football between clubs, with Leeds and Leicester set to be the latest.

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