Premier League teams have been on high alert since Burnley managed to win their case against Everton in court. Now, Leeds United are the latest to follow with news emerging in the last hour.
Everton breached PSR regulations when they survived relegation in 2021/22.
The toffees were then deducted six points in the 2023/24 campaign. Clubs that were relegated in the 2021/22 season sought legal action against the Merseyside club.
Their case was that if Everton had been docked points for that year, they would have survived relegation.
Burnley finished just four points below Everton that year. The case saw the Clarets take the Premier League club to court, and they won following the proceedings, with a monetary compensation.
Leeds United launch legal action against Leicester City
Leeds United also decided to go up against Everton for the same reason, as they were also denied safety that year.
However, their court case was settled before a final verdict was reached, and per sources they were given a compensation. The Whites have now taken legal action once again for a case involving financial breaches.
Leicester City were promoted to the Premier League in the 2023/24 season.
They finished two places above the Whites that year. Leeds have taken to court, claiming that they would have won automatic promotion to the top flight if the Foxes adhered to PSR rules.
That season saw the club finish in the play-off spots, and eventually losing the play-off final to Southampton. They spent one more season in the Championship before eventually being promoted this year.
Leicester were handed a six-point deduction in the Championship last season as a punishment for breaching spending rules in the 2023/24 campaign.
The Athletic has revealed that official legal proceedings have been opened, with a statement of claim having been made to Leicester City.
READ MORE: Everton ordered to pay Burnley £35m in case Leeds United chose to settle
What happens next?
A statement of claims has been set out as to why Leeds are taking Leicester City to court.
Their case include mentions of specific losses, with the club having requested an assessment of damages as a result of Leicester’s financial breach.
The hearing will not take place until next summer.
Leeds successfully argued their case against Everton and won financial compensation a few seasons back. Now, they will hope to win another case, this time against the Foxes.
Burnley winning their initial case against Everton has now provided a framework for other clubs in similar situations.
