Everton could be forced into conceding defeat in their hearing with Burnley over a staggering £50m compensation claim.
The times are changing at Everton, with new ownership bringing a fresh lease of stability on Merseyside.
However, on the back of a successful summer transfer window, there are still old issues which are lingering over the club.
After securing their takeover in December, The Friedkin Group have boosted Everton’s finances to pull the club clear of their PSR concerns.
David Moyes saw first hand the differences under the new ownership, with some seriously impressive summer signings secured.
As positive as things are going on the pitch, Everton have a PSR hearing with Burnley to consider this week.
Everton News’ finance expert Adam Williams has cast his eyes over the case, which could see The Friedkin Group forced into settling Burnley’s complaint.
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Everton’s possible Burnley pay out will come out of 2025-26 accounts
Stefan Borson has suggested that The Friedkins have likely factored Burnley’s case into their takeover when negotiating a deal with Farhad Moshiri for the club.
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Money is unlikely to be an issue for the new Everton owners, who will be hoping this case does not drag on for too long.
Speaking to Everton News, finance expert Williams has suggested that any compensation paid out to the Clarets will be taken from the 2025-26 accounts, but they will not be accessible until 2027.
“We’ve known this arbitration was in the works for some time. It is going to have pretty significant fallout, not just for Everton and Burnley, but potentially the entire Premier League in terms of the precedent it sets,” he said.
“The case is taking place at the International Dispute Resolution Centre, the same place where Man City’s 115 charges case was handled. The way the Everton-Burnley situation pans out could be an omen for what happens after the outcome of that case – that is in terms of clubs who have lost out on titles or Champions League spots at City’s expense claiming compensation.
“Clearly, this is a less complex case than the City one, so we should expect a verdict sooner. That said, neither the Premier League, nor Everton nor Burnley are obliged to release the outcome, however, so we might not ever get the full details in black-and-white terms. If Everton are forced into a payout, however, we’ll see evidence in their 2025-26 accounts, but we won’t have access to them until spring 2027.”
Everton’s finances are in a considerably better state following the takeover back in December.
But the early suggestions are that the Toffees could well find themselves paying out to the newly-promoted side.
How much Everton could pay Burnley in compensation
In his appearance on TalkSPORT, Borson claimed Burnley are likely to win compensation from Everton in this hearing.
The initial cases from both clubs have already been shared, with an early settlement a real possibility to save any drawn-out process.
Picking up on the prospect of Everton paying out to Burnley, Williams has shared a rough idea of how much the Toffees could be looking at handing over.
“The case itself centres on whether Everton stayed up in 2021-22 at Burnley’s expense because of the financial advantages that Everton’s overspending under PSR afforded them. Crucially, they don’t have to conclusively prove that this was definitely the reason they stayed up, merely that they were denied the chance to survive because of it,” Williams added.
“If Burnley had, say, a 25 per cent chance of survival had Everton not breached PSR, they could recover 25 per cent of the costs. I would recommend reading Stefan Borson’s writing on this, as he is the real expert in this field.
“Instinctively, I’d suggest Burnley are likely to be awarded some compensation, though I don’t it will be the full £50m based on the ‘loss of chance’ argument. After that, there is the matter of legal fees to be considered and how those costs are apportioned. If Everton lose, it’s likely they’ll pay those too, which will run into seven figures.”