I'm not actually sure where he is getting his numbers from. The costs is likely to be £700m from the TV revenue, around 35 million each. If we end up going into next season, we may have to abandon half of it or potentially cancel an entire season. That is going to cause much more financial difficulties.
Leeds and West Brom have a very limited case. They are not guaranteed to be promoted. The principle of a cancelled seasons results are invalid is a fairly strong one. It has historical precedent and will have modern precedent soon (or further precedent).
As for SUFC and MUFC, there claim relates to Manchester City, nothing to do with the season being cancelled. It should be added, they both win can't and would probably be competing against each other.
The far bigger threat of litigation comes from two options;
1) We start finishing the season with different players, after June 30th (or that we prevent players signed after that date to play). Or alternatively you try to force sides to have to keep paying players. All of these cause a major litigation nightmare (substantial beyond anything Leeds, West Brom, Sheffield United or Manchester United could bring).
2) Worse still we start awarding league positions based upon an incomplete season.
3) We come up with some wacky scheme, toppled behind closed doors, without preparation, in a situation that is potentially dangerous.
These 3 are the danger of enormous litigation from the sides who are getting relegated.