Leeds United were one of multiple clubs that tried seeking compensation from the Premier League over losses in revenue stemming from relegation at the hands of Everton, who were found in breach of PSR for the 22/23 season in question.
The Whites are only eight games away from potentially returning to the Premier League under the 49ers’ stewardship, hoping to stabilise in the top flight after their previous three-year stint, ending up relegated in 22/23.
A chief frustration for Leeds was that the two sides directly above the relegation zone – Everton and Nottingham Forest – survived and were then found in breach of PSR and handed points deductions, which could have been decisive in the relegation battle the breaches actually pertained to.
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Angus Kinnear could be set for Everton, Burnley compensation feud amid Leeds exit
(Photo by Lewis Storey/Getty Images)
The key figure involved in seeking compensation for Leeds, Burnley and others was Whites CEO Angus Kinnear, writing to the Premier League to kickstart an investigation into the Toffees’ inability to stay within PSR guidelines as Leeds did.
Interestingly, Kinnear is now confirmed as leaving Elland Road in the summer to join Everton as their new CEO ahead of a move to their Bramley Moore Dock stadium, and one of Kinnear’s first acts might be to deal with compensation claims from Burnley – according to Stefan Borson.
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The Clarets’ possible success in claiming for compensation from Everton due to a loss of revenue upon relegation would open the door to Leeds doing similar.
“If Burnley are successful in their claim against Everton, even partially, Leeds would appear to have a very strong case for Everton’s additional merit payment of £2m for finishing above them,” Borson wrote in his Substack.
“It simply requires a tribunal to consider it more likely than not (ie on a balance of probabilities) that Everton would have got two fewer points but for their admitted overspend. It is not impossible that Everton have already paid up which is why we have heard nothing of Leeds in the Burnley conversation.
“If the case is on-going or Leeds are waiting to see how the Burnley case unfolds, it is going to present some interesting litigation/disclosure issues given that the executive that probably knows most about the case, Angus Kinnear, is about to switch sides to become Everton CEO.”
Everton gained over Leeds and Burnley through breaching the spending rules
PSR is largely a flawed system, and there have been several developments in the Premier League that have pointed that out.
One of those is Everton and Forest being able to get a mere handful of points taken from their following season’s total after already benefitting from breaching the rules.
It’s not outlandish to suggest either could have been relegated if they were punished at the time for their breaches, or would have been relegated if they were spending within their means and therefore had to sell in the way Leeds did.
Now, Forest are on the cusp of Champions League football while Everton are comfortably away from relegation again.
What is most intriguing is how Kinnear handles this legal debate when he’s on the other side of the situation, having orchestrated Leeds and Burnley’s argument in the first place.