‘Leeds could submit compensation claim after Leicester points deduction twist’
Leeds United could potentially submit a compensation claim as Leicester City look set to land a points deduction.
The Foxes were initially charged in March 2024 with a spending breach after reporting losses of £90million for 2022-23, with top-flight sides only permitted to lose £105million over a rolling three-year period.
However, it has been confirmed they will not face any punishment for their 2022-23 breach after exploiting a loophole in the rules.
Leicester have now been charged with an alleged breach of the EFL’s financial rules for 2023-24 when they secured promotion back to the Premier League.
The Foxes have been referred to an independent commission, leaving them facing a potential points deduction following their relegation to the Championship.
Finance expert Stefan Borson told Football Insider Leicester could land an eight-point deduction if the case goes to a hearing.
Leeds could take legal action after Leicester points deduction
Leicester won the Championship title during the season they are alleged to have breached the PSR rules.
Ipswich Town also secured promotion after ending the campaign as runners-up, while Leeds finished third in the table, seven points behind Leicester.
The Yorkshire giants could have a case to suggest they would have finished above Leicester had they not broken the spending rules.
Elland Road chiefs are likely currently considering whether a compensation claim would be worthwhile, given that the club missed out on a year’s worth of Premier League money.
However, they may feel it might not be worth taking legal action after Daniel Farke’s side have now earned promotion to the top flight, having claimed the Championship title.
Leeds could match Burnley in new compensation claim
Leeds were promoted alongside Burnley, who secured their immediate return to the Premier League following their relegation in 2023-24.
Burnley currently have their own compensation claim ongoing after pursuing legal action against Everton.
The Lancashire side were one of five clubs alongside Leeds, Leicester, Southampton and Nottingham Forest to apply for compensation after the Merseyside giants were charged with a PSR breach for 2021-22 and 2022-23.
However, it now appears as though only Burnley are seeking compensation from Everton, who were docked eight points during the 2023-24 season.
Burnley finished third-bottom and four points behind Everton in 2021-22 before the Merseysiders were later found to have breached the PSR rules in that campaign.
It’s unclear whether Leeds will take similar action against Leicester, but they could have a case depending on the severity of their alleged PSR breach.
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