Leeds United 'open legal proceedings' against former rivals amid £35m judgement
Leeds United were pipped to Championship promotion by Leicester City during the 2023/24 season.
Leeds United have reportedly opened legal proceedings against Leicester City after missing out on Championship promotion in 2023/24.
Leicester pipped Leeds to promotion during Daniel Farke’s first campaign in charge, eventually winning the league under Enzo Maresca. Ipswich Town finished second that season and were automatically promoted while the Whites had to settle for third and the play-offs.
They eventually lost the play-off final against Southampton and were condemned to a second year of Championship football. It has since emerged that Leicester broke Profitability and Sustainability Rules (PSR) during that period.
In February, Leicester were docked six points for a PSR breach in the three years up to 2023/24, that deduction eventually playing a role in their relegation to League One. And the Foxes are now facing a legal challenge from Leeds.
The Athletic report a statement of claim has been served against Leicester, outlining why action is being taken. Leeds are said to have included specific losses while also requesting an assessment of damages. According to the report, a hearing is expected to take place next summer.
Reports first emerged in June of Leeds considering legal action after a shock verdict in similar circumstances. A week prior, Everton were ordered by a Premier League panel to pay £35million to Burnley after avoiding relegation at the Clarets expense in 2021/22 - a season in which they breached PSR.
Leeds finished 17th that season, one place below Everton who were later charged with a PSR breach and deducted 10 points, reduced to six on appeal. Elland Road chiefs reached an out-of-court settlement with their Merseyside counterparts which was believed to have been around £2m, effectively the cost of extra revenue from each position up the table.
Burnley were relegated and the Premier League panel judged the Toffees’ breach to have materially impacted Burnley’s chances of survival. Everton said the shock decision set a ‘dangerous and unworkable precedent’, with the expectation being other clubs would reflect on historical breaches and consider if they are due compensation.