Everton have lost a legal dispute against Burnley with the Toffees having to pay £30million in damages after breaching Premier League financial rules
Everton have been ordered to pay £40million to Burnley(Image: Getty Images)
Everton have been left “surprised” and “angered” after they lost a legal dispute against Burnley for breaching Premier League financial rules in the 2021/22 season. The Toffees have been ordered to pay Burnley compensation and interest of around £35million, though they intend to appeal the decision.
A statement from Everton on Wednesday read: “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.
“Everton has appealed the decision and is clear in its belief the ruling is fundamentally flawed in both law and fact.The club does not recognise the findings of the panel in determining Burnley’s relegation from the Premier League in May 2022 was caused by a sporting advantage gained by Everton due to a breach of Profit & Sustainability Rules, for which a substantive sporting sanction has already been received.
“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.
“Everton believes the panel’s ruling misrepresents the clear evidence presented by its legal representatives and that an appeal will be successful.
“The club is confident of its ongoing PSR compliance and has also obtained confirmation from the Premier League of its clear position that this ruling should not be the cause of any future PSR sanction.
“Evertonians can be assured that ownership are focused, with strengthened resolve, on delivering their vision of returning Everton to the top echelon of English football.
“No further comment will be made on this matter until the appeal process has been successfully concluded.”
Burnley were given leave to sue Everton by a Premier League tribunal in 2023 after the Toffees were first deducted 10 points for Premier League Profit and Sustainability (PSR) breaches in the 2021/22 season. Their punishment was reduced to six points following an appeal.
But the Clarets felt they deserved a significant compensation package after they were relegated in the season Everton broke Premier League financial rules. Burnley finished 18th, four points behind the 17th-place Toffees, who remained in the top flight after Frank Lampard turned their fortunes around.
The Lancashire club argued that the six points should have been deducted in the 2021/22 season, when the breach of £19.5m above the permitted £105m three season loss was found to have taken place. That would have allowed them to stay in the Premier League at Everton’s expense.
Burnley added that the PSR breach was a factor in Everton’s squad depth allowing them to avoid relegation. The Clarets have since flipflopped between the Premier League and Championship, and most recently dropped to the second tier of English football for the third time in four years.
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