Everton have been ordered to pay Burnley nearly £40m in compensation after Burnley won their landmark legal case against Everton for breaching Premier League financial rules. The verdict, delivered by a Premier League independent disciplinary commission, has widespread ramifications for the competition and increases the likelihood of more clubs taking legal action over Profit and Sustainability Rules (PSR) breaches.
Burnley sued Everton after they were relegated to the Championship at the end of the 2021-22 season. Everton were deducted 10 points for breaching PSR rules in the four-year period up to June 2022, although that verdict was not reached until November 2023. The penalty was later reduced to six points on appeal.
Premier League rules allow clubs to seek compensation from other clubs that are found guilty of breaching rules. The same three-man panel that deducted Everton 10 points over the same breach in November 2023 made the compensation order.
Everton's response
Everton expressed surprise and anger at the decision, stating: "Everton Football Club is surprised and angered by the decision of a Premier League Independent Disciplinary Commission to order a compensation payment to Burnley Football Club in relation to Everton’s PSR breach in June 2022."
The club has appealed the decision, arguing it is fundamentally flawed in both law and fact. Everton does not recognise the panel's finding that Burnley's relegation was caused by a sporting advantage gained by Everton due to the breach, for which a substantive sporting sanction has already been received.
Everton believes the ruling sets a dangerous and unworkable precedent for English football, as it is constructed on the principle that a club can be in breach of financial rules at any point in a financial year. The club maintains that the panel's ruling misrepresents the clear evidence presented by its legal representatives and that an appeal will be successful.
More details are expected to follow as the case develops.
