Leeds United and Everton reached an out-of-court settlement in connection with the latter’s breach of profit and sustainability rules during the 2021-22 season earlier this year.
In November 2023, a Premier League independent commission found Everton guilty of the breach and the club later admitted it exceeded the permitted three-year losses of £105m by around £19.5m.
Everton were deducted 10 points in November 2023, although it was later reduced to six on appeal. This penalty allowed Everton’s rivals to assess the earnings they may have lost as a result of this rule breach.
Burnley, who were relegated two places and four points behind Everton in 21-22, are in court with the Merseyside club to argue their case for lost earnings. Leeds, who were not relegated in 2022, but did finish one place and one point behind Everton in 17th, weighed up taking similar court action. Leicester City, Southampton and Nottingham Forest also initially indicated they would consider legal action.
However, sources with knowledge of the case, who spoke anonymously to protect relationships, said the Leeds hierarchy did not believe their case was strong enough to go to court. Therefore, the two clubs reached an agreement earlier this year, which draws a line under the matter for good.
The financial package remains undisclosed, but according to the Premier League’s official table of merit payments for 21-22, 17th-place Leeds received £2,057,220 less than 16th-place Everton.
Everton also breached PSR rules in 2022-23, when Leeds were relegated. However, Leeds were two places back in 19th and could not argue they would have survived if Everton had either been punished (with a points deduction) or honoured the PSR rules.
Leeds and Everton declined to comment.
(Photo: Darren Staples/AFP via Getty Images)
Sep 24, 2025
Connections: Sports Edition
Spot the pattern. Connect the terms
Find the hidden link between sports terms
Play today’s puzzle