Everton have been ordered to pay Burnley £35m over the impact of breaches of the Premier League’s financial rules.
The case, heard by a Premier League commission, relates to the 2021-22 season, when Everton were found to have breached profit and sustainability regulations (PSR) over a three-year period.
Burnley argued the breach affected their survival chances in the Premier League and sought compensation for losses linked to relegation.
The commission awarded the Clarets £26m in damages and a further £9m in interest.
Everton have appealed the ruling, with sources saying they will “robustly and thoroughly” contest the decision.
The club said in a statement they were “clear in the belief the ruling is fundamentally flawed in both law and fact”.
“This ruling sets a dangerous and unworkable precedent for English football, given it is constructed on a principle that a club can be in breach of financial rules at any point in a financial year,” the statement said.
“Everton believes the panel’s ruling misrepresents the clear evidence presented by its legal representatives and that an appeal will be successful.”
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Both clubs submitted expert evidence assessing the impact of Everton’s overspend on their points total.
The commission said it found Burnley’s evidence, which projected a gain of between 3.85 and 7.13 points for Everton, to be “more compelling”.
It added that “on the balance of probabilities, Everton’s breach of the PSR caused Burnley to be relegated”.
The ruling stated that any compensation payment would not affect Everton’s PSR accounts for the current period.
Background
Everton were charged by the Premier League and deducted 10 points in November 2023, a sanction later reduced to six points on appeal and applied to the 2023-24 table.
The argument in the Burnley case centred on the claim that if the deduction had applied in the 2021-22 season, Burnley would have had a better chance of avoiding relegation.
Everton finished 16th that season on 39 points, with Leeds in 17th on 38 points and Burnley bottom on 35 points.
Leeds are reported to have agreed a settlement with Everton in September 2025.
The Premier League is unable to apply points deductions to the season in which an offence occurs due to accounting rules that run to the end of June.
However, regulations allow clubs to seek compensation from others if rule breaches are proven to have caused financial loss.
Leicester City, Nottingham Forest and Southampton were also reported to have considered legal action.
The ruling could have wider implications, including for Chelsea, who were fined £10m after admitting £47m in secret payments to unregistered agents and third parties between 2011 and 2018.
Elsewhere, clubs could pursue compensation if Manchester City are found guilty of 115 alleged breaches of financial rules between 2009 and 2018. City deny all charges.
Everton react with strong appeal stance
Four years after their initial PSR sanction, Everton are again facing consequences linked to the same financial breach.
The latest ruling has been described within the club as creating a “triple jeopardy” effect, combining points deductions, reduced league revenue, and now a compensation order.
Club officials have reacted with astonishment at the decision and believe the judgement is excessive and flawed.
While the breach occurred under the previous ownership of Farhad Moshiri, the Friedkin Group now faces the financial burden of the ruling, though it is unclear if any arrangements exist to recover costs.
Despite the development, sources indicate the ruling will not alter transfer plans or the club’s wider direction.
Instead, it is expected to reinforce efforts to strengthen the squad and push Everton back towards the top end of the Premier League.
Some within the club also believe the figure awarded is disproportionate compared with previous sanctions in English football.
Everton have immediately lodged an appeal and believe the decision could have significant implications for the Premier League if upheld.
(BBC)
