Everton And Leeds Reach Agreement Over 2021-22 PSR Breach

• Everton and Leeds United have reached a private settlement following Everton’s breach of Premier League profitability and sustainability rules for the 2021-22 season.
• Everton were initially docked 10 points in November 2023, later reduced to six on appeal, after being found £19.5 million over the permitted £105 million loss limit across three years.
• Leeds had been among five clubs granted the right to pursue compensation, but with this settlement complete, Burnley’s claim is now the only one still outstanding.

Everton and Leeds United have resolved their dispute linked to Everton’s breach of Premier League profitability and sustainability rules (PSR) during the 2021-22 campaign, according to reports from the PA news agency.

The agreement, first revealed by The Athletic, is understood to have been reached last season, although neither club has publicly commented on the matter.

Everton were hit with a 10-point deduction in November 2023 after an independent commission confirmed they had exceeded PSR limits by £19.5 million. That penalty was later reduced to six points following an appeal in February 2024. Under PSR regulations, clubs are permitted to lose up to £105 million across a rolling three-year period.

When the sanction was announced on Nov. 17, 2023, the Premier League also released details of a commission judgment from May 2023. That ruling gave Leeds, Nottingham Forest, Southampton, Leicester and Burnley 28 days to state whether they intended to pursue compensation claims.

With Leeds’ settlement now agreed, Burnley’s case is believed to be the only unresolved claim. No similar deals are thought to have been struck with Forest, Southampton or Leicester.

The dispute arose partly because Everton finished 16th in the 2021-22 Premier League season, ending just one point and one place above Leeds. Financial records from that season show Everton collected £1.9 million more than Leeds in merit payments, a sum which could have implications for compensation discussions.