Everton have been ordered to pay £35m in compensation to Burnley in an unprecedented ruling that could have huge ramifications for the Premier League – and potentially Manchester City with a verdict on their 115 charges looming.
Burnley brought a case against Everton after they breached Profitability and Sustainability Rules (PSR) for the 2021-22 season, which resulted in a 10-point deduction (later reduced to six on appeal) in 2023-24. Burnley’s case – centring around the legal principle of “loss of chance” – argued that their relegation in 2022 was a result of Everton gaining an advantage by not sticking to Premier League financial fair play rules.
They claimed for more than £50m in loss of earnings and brought the first of its kind action under Premier League rules. A three-person panel – the same that gave Everton the original 10-point deduction – decided on a £25m compensation order with nearly £10m of accrued interest.
It’s a decision that sets the cat among the pigeons in legal terms, with experts arguing it opens the door for clubs to bring similar legal actions against rivals who have breached rules. In theory clubs who have missed out on European places or titles could also mount similar cases.
