AliousEverton’s Quiet Settlement with Leeds and the Takeover Clause That Could Shape Their Future
Everton have privately settled a long-running dispute with Leeds United, agreeing to pay compensation linked to the Toffees’ breach of Premier League Profit and Sustainability Rules (PSR) during the 2021/22 campaign.
According to *The Athletic*, the Merseyside club handed Leeds an undisclosed sum because their rule breach potentially altered the final league table.
That season, Everton finished one place above Leeds, who slipped to 17th instead of 16th — a position that carried higher prize money. Leeds argued they lost revenue as a result, and Everton have now opted to settle out of court.
Why Leeds Were Compensated
Finance expert Adam Williams explained the reasoning. He noted the narrow margin in the table — just a single point — made Leeds’ case more straightforward than Burnley’s ongoing claim against Everton.
While Burnley were relegated, Leeds’ complaint revolved around prize money, estimated at close to £2.1 million.
Prize distribution figures suggest Leeds earned around £368,000 less from the international broadcast pool and nearly £1.7 million less from domestic merit payments compared to Everton.
Williams stressed, however, that it’s unlikely the Toffees paid the full amount, as arbitration would have been based on the legal principle of “loss of a chance.” Instead, a reduced settlement was the more probable outcome.
Friedkin’s Takeover and Future Planning
The settlement is believed to have been anticipated by new owner Dan Friedkin, who took control of the club from Farhad Moshiri last year.
Williams suggested the Friedkin Group would have budgeted for potential liabilities when negotiating the takeover, drawing parallels with Chelsea’s Clearlake Capital, who discounted their purchase price by £100m to safeguard against past financial issues under Roman Abramovich.
Minimal Impact, But Symbolic Importance
While the payment to Leeds is unlikely to significantly alter Everton’s financial outlook, it underlines the complicated legal and financial landscape surrounding PSR breaches.
For Friedkin, ensuring such matters are resolved quickly is part of a broader strategy to steady the club and focus on future growth, rather than battles over past missteps.
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