Burnley are suing Everton for £50million over damages caused by their 2022 relegation, as the Clarets were relegated on the final day with Leeds United staying afloat.
The financial pressures to stay in the Premier League are there for all to see every season, for every club involved at the bottom.
Some take it too far, though. A few breaches of PSR were confirmed in recent seasons: namely Nottingham Forest, Leicester City and Everton.
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Burnley suing Everton for £50million over 21/22 PSR breaches
As Leeds watch on and look to stay afloat in the top flight, maxing out their PSR but expecting to be compliant, Burnley are looking for compensation for historic damages.
That’s according to i News, who report the Clarets are suing Everton for £50million this week. This court case pertains to the 21/22 season where the Toffees were found in breach of PSR, and stayed up at Burnley’s expense. Leeds finished 17th while Everton were in 16th, four points clear of the Burnley in 18th.
Burnley sue Everton for £50m over 21/22 relegation scrap and PSR outcomes. (REUTERS/Craig Brough)
Burnley’s case argues that the £50million they are suing for regards their loss of revenue upon relegation. They claim that Everton gained a significant sporting advantage by breaching spending rules. Their stance is: had the points deduction been given to Everton for that season, they would have been relegated instead.
A 10-point deduction was given to Everton in winter 2023, which was reduced to six. Importantly, this case could be groundbreaking for Premier League clubs lodging claims in the future:
“If Burnley are successful, it would also mean other clubs could mount similar claims against rivals that breach spending rules in the future,” the report reads.
It’s worth noting, all three sides (Leicester City, Everton, Nottingham Forest) that breached PSR finished directly above United in 22/23.
Back in May 2023, the Mail reported that Leeds appealed to have Everton’s punishment hearing fast-tracked. Leeds hoped that a deduction would, in their eyes, rightly come into play for the 22/23 league standings.
Do Leeds United also have a case for damages after multiple PSR breaches?
Everton’s PSR breaches directly impacted Burnley, that much is obvious. If Everton remained compliant, that would mean either not buying as many players, or having to sell more.
For Leeds, it didn’t matter at all that season for us, despite us initially planning to sue as well. What is intriguing is the following season, where Everton avoided a deduction again due to the protracted nature of the PSR punishment, Leeds went down as they finished below three teams that overspent.
Leicester have been in breach for more than one season, Everton as we know have, and Forest were also punished after ridiculous spending in 22/23.
Is there an argument to be made that Leeds would have stayed up if there was a level playing field? This would set a general precedent, though, regardless of Leeds’ thoughts on it.
Let me know your thoughts in the comments below!