Everton have been ordered to pay Burnley almost 40 million in compensation after losing a landmark legal dispute regarding the club breaking Premier League Profitability and Sustainability rules.
Burnley had initiated the case after their relegation from the top-flight during the 2021-22 campaign, stating the club was afforded an unfair sporting advantage from the rule-breaking by Everton. It is agreed by an independent commission that Everton’s violation did impact on the Clarets’ relegation.
Everton were initially docked 10 points for exceeding their PSR over the four-year period to June 2022 by 19.5m, but this was reduced to six on appeal. Burnley stated in their legal battle that had this deduction taken place during 2021-22, then the club would have been relegated instead of the Clarets and sought damages of 51.7m but instead have been awarded 26m plus accrued interest of 9.1m plus subsequent interest to run from July 2025.
Everton have launched an appeal against the judgment, with the club shocked and angered and calling it “fundamentally flawed in law and fact”. The judgment could have wide-ranging ramifications on English football as a whole as it opens up avenues for other claims against rival clubs over breaches of financial rules. Burnley chairman Alan Pace stated that it was a case to ensure integrity and fair competition for clubs and fans.
