Leeds United are reportedly threatening to sue Everton amid ongoing uncertainty over the Merseyside club’s ownership situation. Everton are currently facing Premier League charges over apparent breaches of profit and sustainability rules due to overspending.
The Toffees posted updated accounts in March that showed spending of £313.5m over three years, which is significantly more than the loss limit based on incomings and the allowance for extra input from owners. The allowance is set at £105million, while clubs were also allowed to claim for extra losses due to covid in the most recent cycle, but Everton are still significantly over the limit, given their Covid claims are said to have totalled around £90million.
Leeds, Leicester and Southampton were reportedly left furious that the charges were not dealt with last season, allowing them to dodge a potential points deduction that could have changed the relegation picture. But those three clubs have not yet given up in their attempts to ensure that Everton are held accountable for breaking the rules - if they are found to have done so.
In the meantime, Everton are subject to a takeover agreement involving Miami-based firm 777 Partners, who have already loaned the club £20million to help with cashflow after agreeing a deal in principle to purchase the club from current owner Farhad Moshiri.
The purchase could be a significant boost for Everton, who are currently in the process of building a new stadium, but the Premier League hearing will come regardless of any takeover, and punishment could be significant if they are found guilty. If found not guilty, nobody would have a case against Everton.
But according to MailOnline, Leeds, Leicester and Southampton have now written a joint letter to the Premier League to inform Everton and their prospective new owners that they plan to sue the Toffees for £300million should they be found guilty of breaching spending rules. The additional legal action would relate to what those three clubs feel is unfair relegation - and indeed related financial losses - based on the fact Everton may have overspent, allowing them an unfair advantage.
The Premier League are said to have told the three clubs that they have noted the correspondence and that they will pass the letter on to 777 Partners. It’s unclear what impact it could have on Everton’s ownership situation, with the Premier League yet to approve the new owners.
Leeds were approached by the YEP but declined to comment on the story.