Leeds United fans may yet see their club end up receiving something from Everton in compensation for Premier League Profit and Sustainability Rules (PSR) breaches which took place during the 2021-22 season.
What Happened with Everton?
Everton has been struggling with financial issues, especially regarding the Premier League’s spending rules.
These regulations restrict clubs to lose up to £105 million over three years.
But Everton have exceeded that limit by around £20 million in 2021-22, and an excess of about £16.5 million in 2022-23.
That triggered the first sanctions to be imposed on a Premier League club under PSR, with Everton losing points from their 2023-24 season.
Even with such issues, Everton only finished 4 points off of relegation in the 2021-22 campaign and only two points in the next season.
Leeds and Other Clubs Want Compensation
Leeds United, along with Leicester, Burnley, and Southampton, were not happy about how Everton stayed in the Premier League despite breaking the rules.
This alerted the clubs to seek potential compensation of up to £100 million a head.
However, there was a concern that pushing Everton too hard could lead them to go into administration, which could be a bad situation for everyone involved.
Could Leeds Still Get the Money?
The claim that Leeds and the other clubs had withdrawn their own Everton complaints has been widespread, but legal expert Stefan Borson isn’t so sure.
He believes that Leeds could yet be eligible for compensation. Clubs cannot sue each other but can go through arbitration under the Premier League’s rules, according to Borson.
These rules allow for “unlimited compensation” if a club is found to have lost out because of another club’s actions.
Everton’s Financial Future
However, Everton are not in the clear by any stretch of imaginations when it comes to their finances.
Although they did post a loss of £89m for 2022-23, the club feel their losses are now low enough to be ok under Premier League spending rules this season.
They have made efforts to cut costs, like selling players and lowering their wage bill.
But there is another problem at Everton. It could relaunch another dispute with the Premier League over whether they were entitled to more than £6 million in interest payments relating to loans borrowed during 2022-23.
It would, of course, be a route which leads to more fines and possibly another points deduction for Everton.
What Does This Mean for Leeds?
And this long-standing tussle between the two clubs could still end with some money making its way to Leeds United.
If the arbitration process goes ahead and Leeds successfully proves that they were damaged by Everton’s financial breaches, they might receive a payout.
However, it’s still unclear how this will all play out.
In the end, the story of Everton’s financial troubles and Leeds United’s potential compensation is still unfolding, and both clubs’ futures could be impacted depending on the outcomes of these ongoing issues.
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