Leeds United are considering taking legal action against Leicester City, according to The Times.
They are exploring how the Foxes’ issues with Profitability and Sustainability Rules (PSR) affected two of their seasons.
Leeds were relegated in 2022-23 alongside Leicester. The Foxes gained immediate automatic promotion back to the Premier League with Leeds losing in the play-offs the following season.
Leicester were docked six points last term after they were charged by the Premier League for breaking spending thresholds in 2023-24.
They won an appeal against an alleged breach of PSR regulations for the 2022-23 season in September 2024, arguing that the Premier League had acted outside of its jurisdiction.
Leeds will look to draw parallels from Burnley’s compensation victory over Everton earlier this month.
The Clarets argued that they would have avoided Premier League relegation in 2022 had Everton’s six-point punishment for breaking PSR been applied during the season of the breach (2022-23), rather than in 2023-24.
The Toffees have been ordered to pay Burnley almost £40 million, and Leeds are hoping to get similar compensation from Leicester.
They reached an out-of-court settlement last year with Everton regarding the Toffees’ PSR breach, as they believed their case was not legally strong enough to pursue.
Leeds were not relegated in 2022, finishing one spot and one point behind Everton.
While the financial package was undisclosed, it is believed a merit payment was worth around £2m.
They are ready to take Leicester to the Premier League independent disciplinary commission, which awarded Burnley their compensation.
Everton are appealing the decision, and Leeds will be monitoring the situation.
