Leeds given 'encouragement' over compensation case against Everton

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·25 November 2023

Leeds given 'encouragement' over compensation case against Everton

Leeds United have been handed a major boost in their hunt for compensation from Everton, as the independent commission ruled in favour of their claim, journalist Ben Jacobs has revealed to GIVEMESPORT.

It comes after Everton were deducted 10 points by the Premier League last week, after the commission found they had violated the competition's profit and sustainability rules. It's suggested the Toffees had overspent by £20 million across a three-year period, which ultimately saw them breach the rules and were therefore punished for their actions.

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And as a result of that, Leeds are claiming they gained an unfair sporting advantage, which might've contributed to their relegation from the Premier League during the 2022/23 campaign.

While Leeds might currently be plying their trade in the EFL Championship, they were handed a minor boost this week when it was revealed they are able to sue Everton for loss of earnings. It comes as a result of relegation to the second tier last season, with some suggesting Everton, instead of Leeds, might've been relegated instead, had they not broken the rules.

A report in The Daily Mail following the decision to dock Everton points revealed that Leeds, along with Leicester City and Burnley, could pocket a combined total of £300 million from the Merseyside outfit. Of course, that would present further financial hurdles for Everton to climb over, but it could present Leeds with some closure following what they now believe to be an unjust relegation.

It's also suggested Leeds hold frustrations with the Premier League that the case wasn't dealt with last season, as Everton, had the points deduction been handed out then, would've been relegated as one of the bottom three teams. It would've then - most likely - left one spot to be filled by either Leeds or Leicester, with the two separated by just three points in the end.

Leeds justified in legal action against Everton

Unsurprisingly, the mooted legal action has split opinion, but journalist Dean Jones believes Leeds have every right to put their case to the commission in hopes of landing a hefty payout.

The reliable reporter told GIVEMESPORT that Leeds themselves could've overspent to stay in the league, but the West Yorkshire outfit instead obeyed the rules and were punished in a sporting sense as a result:

"Leeds will argue they could have gone and overspent by £20million and stayed in the Premier League, but they didn't because that's not what you're allowed to do. There's the morality of it, and then there are the legalities of it as well.

"I think that the two things are very separate, in terms of the way the football club will be run, and you can understand why the people that deal with the legal side of Leeds feel that they've got a case here."

That's the argument the Leeds lawyers will be looking to put forward if this case comes to light, with suggestions from Jacobs that it now has every chance of doing so.

When asked about the latest in regard to Leeds' pursuit of compensation from Everton, the journalist admitted they were planning to push forward with plans to seek financial remuneration. Hinting they've been 'encouraged' by the release of the report, Jacobs expects the Elland Road outfit to fight a strong case in search of compensation:

“The ruling from the commission that was made public recently, but was in May, said that ‘although we have to be wary of what was termed procedural chaos, and overlap between cases and clubs directly seeking compensation rather than it being done via the Premier League’, the commission was satisfied that the clubs do have a case for compensation. “So that's encouraging for Leeds, for Leicester City, for Burnley and potentially for Nottingham Forest and Southampton, if they choose to proceed as well. With Forest being in the Premier League again now, they might draw a line under it, as they may feel that they're less impacted. And Southampton went down quite comfortably and perhaps were not as impacted by Everton, so it's unclear whether those two will proceed. “But with the other three clubs, they'll be encouraged by the fact that the report that came out recently, but was ruled in May said that there was a case for compensation.”

Leeds transfer business impacted by Everton cheating

One of the ways in which Leeds have been impacted by Everton's overspending and subsequent relegation was through their transfer business. The Whites lost 13 first-team players over the summer, some of which were because of their demotion to the Championship, with the likes of Tyler Adams, Brenden Aaronson and Robin Koch all leaving for top-flight opportunities elsewhere.

The Leeds hierarchy will now be hoping they're able to keep hold of their top talent during the January window, with clubs said to be circling around teenage sensation Archie Gray. Journalist Jones revealed to GIVEMESPORT that Gray was attracting attention from Premier League outfits, with Liverpool one of the clubs showing a keen interest.