Leeds United are pursuing legal action against Leicester City for their PSR breaches working against the club, but there could be a can of worms emerging.
A precedent has been set in the Premier League as Burnley won a case against Everton regarding loss of revenue. The Clarets argued that their 2022 relegation was a direct result of the Toffees surviving despite their PSR breaches, something thye were later punished for.
That has opened the door for Leeds to pursue likewise legal action against Leicester City – the side who finished above Leeds in two consecutive season where they breached spending limits.
Leeds United pursuing legal action against Leicester City over loss of revenue
The Athletic relayed previous claims that United have begun to open up legal proceedings seeking justice over Leicester’s ‘cheating’ in the 23/24 campaign.
Leeds missed out on promotion under Daniel Farke while staying within spending limits. The Foxes, meanwhile, continued to flout the rules as they finished seven points clear and won the league title.
The 49ers will argue that Leicester gained enough of a sporting advantage through their PSR breach to warrant compensation. Of course, Leeds missing out on promotion meant missing out on lucrative Premier League revenue, offset by the sales of Archie Gray, Crysencio Summerville and Georginio Rutter.
Given Burnley’s successful legal action, Leeds will look for the same compensation. However, Leeds’ previous relegation is also a point of contention. The three sides that finished above United in 22/23 were all later found in breach of PSR at a later stage.
“A sham” – Finance expert Stefan Borson deep dives Leeds United legal action
Finance expert Stefan Borson has now delivered his thoughts on Leeds’ attempts for compensation in 2026. He believes that the Premier League is in an embarrassing state off the back of the 22/23 relegation scrap.
Leeds were relegated despite spending within the rules. Meanwhile, three sides (Leicester, Everton, Nottingham Forest) above us essentially got away with it by over-spending.
“Every club in the bottom five of the 2022/23 Premier League, except Leeds and Southampton, had substantially exceeded the PSR in that season,” Borson wrote on his Substack. “All of them were fielding squads their financial position did not entitle them to field. None of them was penalised in the season the competition was decided and the clubs with the cleanest books finished 19th and 20th.
“The head-to-head record makes the case stronger. In the six fixtures between Leeds and the three overspending clubs that season, Leeds took just 5 points from 18.”
Borson then outlines how Leeds were dealt severe injustice by having ‘clean accounts’ and being relegated. He compares that to the wild overspend from both Nottingham Forest and Everton:
“Forest spent £142.8m in a summer the PSR said it could not afford. Everton overspent for two consecutive years without a point deducted in either. Leicester overspent and paid nothing. Leeds had clean accounts and went down,” Borson continued.
“The 2022/23 relegation battle has now been shown to be a sham. Leeds spent two seasons in the Championship because of it whilst various Commissions heard cases about breaches by other clubs.
“Leeds are already said to have settled a small claim against Everton for 2021/22. The 2022/23 claim looks far bigger. They just need to work out who owes what.”
As Borson outlines, Leeds have settled out of court with Everton over their breach in 21/22. Leeds’ Premier League prize money was impacted by finishing below the Merseyside club. But in the following campaign, relegation is a much greater consequence that will bring huge scrutiny from Leeds’ end.
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