Everton: Leeds and Burnley drop threat of legal action about club's finances

The threat of legal action against the league and the club has been dropped.

Over the course of three years, they have posted losses of over 400 million dollars.

Surprise was caused by the scale of the losses attributed to Covid-19.

They have always said they were confident they had complied with financial rules, and have worked with the league.

After they met with the league, they were told that the accounts were in line with the rules.

In May, the two clubs wrote to the league threatening to leave. It was a last-day win for Leeds that kept them in the top flight, even though they were demoted after a loss to the same team.

As well as adjusting for Covid-related losses, clubs are allowed to deduct spending on their academy and women's team, as well as on their new stadium, which is under construction and will cost more than $500m.

The club's adjusted loss over the last three years is going to get worse once the recently completed season is taken into account.

Thanks to the sale of Richarlison to Spurs on June 30th, income can now be included in last season's accounts and help balance the books for the next three years.