Finance expert predicts how Leicester City’s Leeds United legal battle will really end | OneFootball

Leeds United have opened legal proceedings against Leicester City due to their PSR breach

Leicester City will be targeting a promotion push next season following the appointment of Russell Martin as head coach

The Foxes are competing in League One after a 23rd place finish in the Championship, suffering back-to-back relegations over the last two years.

The Leicestershire outfit have made two signings so far this summer to bolster their promotion hopes, bringing in Alex McCarthy and Conor Chaplin as free agents.

Meanwhile, the likes of Bilal El Khannous and Jeremy Monga have both officially been sold on a permanent basis, earning the club significant transfer fees.

It remains to be seen what other business Leicester will conduct between now and the 1 September transfer deadline.

But the League One side also have an ongoing legal case to manage, with Leeds United opening proceedings against them due to breaching the profit and sustainability rules (PSR) in 2023/24.

Leicester City tipped to settle Leeds United legal drama

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Burnley were awarded a £35 million legal victory against Everton after the Clarets sought legal proceedings against the Premier League side for their breach of PSR.

The Toffees survived in the top flight at the expense of the Lancashire outfit, costing them a place in the division, and have been awarded compensation for that.

However, Everton are currently appealing that verdict, and it remains to be seen when a final verdict will be made.

But the initial success of Burnley’s case against the Merseyside outfit led to Leeds beginning a similar pursuit with Leicester.

Football finance expert Stefan Borson has claimed that Leicester will look to settle their legal case with the Yorkshire outfit before it needs to go to court.

He believes that the Whites could be willing to accept a relatively low figure to conclude the proceedings, with the Premier League side seeking compensation for losing out on automatic promotion to the top flight in the year where the Foxes breached PSR.

"I suspect that when you do the maths on it, Leicester will settle it and Leeds will accept a relatively small amount to settle it," said Borson, via Football Insider.

"Now I might be wrong.

“They might go for it; there might be something we don't know about how it fits together.

"It just seems to me that they can't be sure in any way, even if Everton lose the appeal.

“So all of that stuff is kind of a good authority for how to look at this case, even in that scenario.

"I find it hard to believe that Leeds could have a strong level of confidence that they can get a hearing to agree with them that Leicester would have got seven or more points fewer.

“That feels like a lot."

Leeds gained promotion to the Premier League in 2025, and cemented their position in the division by coming 14th in the table.

Meanwhile, Leicester suffered relegation at the first attempt, dropping back into the Championship, where they went on to be relegated again.

Martin will now be aiming to guide the Foxes back to the second tier at the first attempt after being appointed as the new head coach in the summer.

The 40-year-old’s first competitive game in charge will come on 15 August against Notts County.

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Leicester City need to resolve Leeds case quickly and painlessly

Leicester have suffered from financial issues in recent years, and their PSR breach led to their relegation to League One, as the six points they were docked proved decisive last season.

Having to pay Leeds anything close to the £35 million Burnley earned from Everton would be quite a disaster.

So there is certainly an incentive to settle out of court instead, especially if Leeds are willing to accept a lower figure to conclude the issue.

Once the problem with the Whites is resolved, then fans will be hoping that the financial issues related to PSR can be over for good.